Kulicke and Soffa Industries Inc (KLIC)

Operating return on assets (Operating ROA)

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Operating income	US$ in thousands	-92,496	39,437	470,072	412,447	58,509
Total assets	US$ in thousands	1,240,160	1,499,780	1,588,600	1,601,630	1,054,570
Operating ROA		-7.46%	2.63%	29.59%	25.75%	5.55%

September 30, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $-92,496K ÷ $1,240,160K
= -7.46%

Operating return on assets (ROA) measures a company's ability to generate operating profits from its assets. Looking at the trend for Kulicke and Soffa Industries Inc over the past five years, the operating ROA has been quite volatile, reflecting fluctuations in the company's operational performance.

In the most recent fiscal year ending on September 30, 2024, Kulicke and Soffa Industries Inc reported an operating ROA of -7.46%, indicating that the company generated operating losses from its assets during that period. This negative performance is a concern as it suggests that the company may be facing operational challenges or inefficiencies.

In the prior year, ending on September 30, 2023, the company's operating ROA improved to 2.63%, showing a positive turnaround from the previous year's negative return. However, the increase was relatively modest compared to the substantial decline seen in the latest fiscal year.

The fiscal year ending on September 30, 2022, showed a significantly high operating ROA of 29.59%, indicating a strong ability to generate operating profits from its assets. This exceptional performance suggests that the company was able to efficiently utilize its assets to drive operating income.

In the preceding fiscal year, ending on September 30, 2021, Kulicke and Soffa Industries Inc maintained a healthy operating ROA of 25.75%, demonstrating sustained operational efficiency and profitability.

Looking back at the fiscal year ending on September 30, 2020, the company reported an operating ROA of 5.55%, showing a moderate level of profitability relative to the intervening years.

Overall, the analysis of Kulicke and Soffa Industries Inc's operating ROA reveals a mix of strong and weak performances over the past five years, with the most recent fiscal year showing a concerning decline in profitability. It would be important for the company to address the underlying issues impacting its operating ROA to ensure sustainable and improved financial performance in the future.