Kulicke and Soffa Industries Inc (KLIC)

Operating return on assets (Operating ROA)

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019
Operating income (ttm)	US$ in thousands	-92,496	-75,711	-88,476	29,308	39,437	87,507	214,072	330,784	470,072	557,364	555,742	509,515	412,447	280,659	171,175	99,137	58,509	43,154	34,010	20,469
Total assets	US$ in thousands	1,240,160	1,257,220	1,298,710	1,486,730	1,499,780	1,508,120	1,524,040	1,549,820	1,588,600	1,628,280	1,559,010	1,704,530	1,601,630	1,409,860	1,256,970	1,146,770	1,054,570	1,029,460	1,160,900	1,118,080
Operating ROA		-7.46%	-6.02%	-6.81%	1.97%	2.63%	5.80%	14.05%	21.34%	29.59%	34.23%	35.65%	29.89%	25.75%	19.91%	13.62%	8.64%	5.55%	4.19%	2.93%	1.83%

September 30, 2024 calculation

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

Operating return on assets (operating ROA) measures a company's ability to generate profits from its operating activities relative to its total assets. A higher operating ROA indicates efficient utilization of assets to generate earnings.

Analyzing the data from the table, we observe that Kulicke and Soffa Industries Inc's operating ROA has fluctuated over time. In the most recent period, as of September 30, 2024, the operating ROA was -7.46%, indicating a negative return on assets from operating activities. This suggests that the company's operating profitability in relation to its total assets was not favorable.

Comparing this to previous periods, we see a declining trend in the operating ROA from peak levels around 2019 and 2020. This decline could be concerning as it may signal decreasing operational efficiency and profitability for the company.

Further analysis and investigation would be required to understand the factors contributing to the negative operating ROA and the declining trend. Management may need to focus on improving operational efficiency, controlling costs, or evaluating the asset utilization strategies to enhance the company's profitability and overall financial performance.