Knowles Cor (KN)
Operating return on assets (Operating ROA)
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 51,100 | -169,400 | -205,600 | -437,100 | -414,800 | -167,300 | -118,100 | 118,800 | 115,800 | 112,800 | 91,800 | 57,100 | 29,200 | 22,400 | 42,400 | 67,200 | 81,200 | 84,100 | 80,100 | 77,900 |
| Total assets | US$ in thousands | 1,462,800 | 1,182,200 | 1,176,000 | 1,195,500 | 1,183,900 | 1,436,700 | 1,458,400 | 1,718,700 | 1,731,600 | 1,723,200 | 1,681,900 | 1,675,300 | 1,654,900 | 1,667,700 | 1,687,700 | 1,696,800 | 1,654,600 | 1,607,500 | 1,585,800 | 1,575,000 |
| Operating ROA | 3.49% | -14.33% | -17.48% | -36.56% | -35.04% | -11.64% | -8.10% | 6.91% | 6.69% | 6.55% | 5.46% | 3.41% | 1.76% | 1.34% | 2.51% | 3.96% | 4.91% | 5.23% | 5.05% | 4.95% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $51,100K ÷ $1,462,800K
= 3.49%
Knowles Corp's operating return on assets (ROA) has shown fluctuations over the past 8 quarters. In Q4 2022, the operating ROA was at its highest point at 8.27%, indicating the company generated $0.0827 in operating income for every $1 of assets. However, in the most recent quarter, Q4 2023, the operating ROA decreased to 2.96%, reflecting a decline in operating efficiency and profitability.
The downward trend in operating ROA from Q4 2022 to Q4 2023 may raise concerns about the company's ability to effectively utilize its assets to generate profits. It is important for Knowles Corp to closely monitor and address the factors contributing to this decline in operating ROA to ensure sustainable financial performance in the future.
Additionally, the fluctuations in operating ROA throughout the quarters suggest that Knowles Corp's operational efficiency and profitability have been variable. Management should focus on optimizing asset utilization and operational performance to improve the company's overall financial health and value creation for shareholders.
Peer comparison
Dec 31, 2023