IPG Photonics Corporation (IPGP)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	218,878	109,909	278,416	159,572	180,234
Total assets	US$ in thousands	2,698,900	2,743,280	3,170,540	2,935,700	2,730,440
ROA		8.11%	4.01%	8.78%	5.44%	6.60%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $218,878K ÷ $2,698,900K
= 8.11%

IPG Photonics Corp's return on assets (ROA) has shown a fluctuating trend over the past five years. In 2023, the company achieved an ROA of 8.11%, which represents a significant improvement compared to the previous year's ROA of 4.01%. This increase indicates that IPG Photonics Corp efficiently generated profits relative to its total assets in the fiscal year ending December 31, 2023.

In the prior years, the company's ROA also varied: 8.78% in 2021, 5.44% in 2020, and 6.60% in 2019. The ROA in 2021 was higher than in 2023, suggesting that the company was more effective in utilizing its assets to generate earnings in that year. However, in 2020 and 2019, IPG Photonics Corp's ROA was lower compared to 2023.

Overall, IPG Photonics Corp's ROA has shown some volatility, with fluctuations observed in different years. The company's ability to generate profits relative to its total assets improved in 2023 compared to the previous year, indicating potentially better asset management efficiency in the latest fiscal period.