Lumentum Holdings Inc (LITE)
Operating return on assets (Operating ROA)
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -180,100 | -434,000 | -115,700 | 303,300 | 527,000 |
| Total assets | US$ in thousands | 4,218,700 | 3,931,900 | 4,632,100 | 4,162,200 | 3,551,600 |
| Operating ROA | -4.27% | -11.04% | -2.50% | 7.29% | 14.84% |
June 30, 2025 calculation
Operating ROA = Operating income ÷ Total assets
= $-180,100K ÷ $4,218,700K
= -4.27%
The operating return on assets (ROA) for Lumentum Holdings Inc. exhibits a declining trend over the period from June 2021 to June 2025. As of June 30, 2021, the operating ROA stood at 14.84%, indicating a robust level of operating profitability relative to the company's total assets. However, by June 30, 2022, the operating ROA experienced a significant decline to 7.29%, reflecting a reduction in operating efficiency or profitability relative to the asset base.
This downward trajectory continued into subsequent years, with the operating ROA turning negative at -2.50% on June 30, 2023. The negative value indicates that, during this period, the company's operating income was insufficient to cover its asset costs, suggesting operational challenges or increased costs. The trend worsened further by June 30, 2024, when the operating ROA decreased to -11.04%, indicating a substantial deterioration in operational performance relative to assets. The decline persisted into June 2025, with the operating ROA marginally improving to -4.27%, yet remaining negative and reflective of continued operational inefficiencies or losses relative to the asset base.
Overall, the data demonstrates a significant decline in Lumentum’s operating profitability relative to its assets over this four-year period, transitioning from a position of strong operational efficiency to a state of negative returns. This trend may denote operational challenges, restructuring efforts, or market conditions impacting the company's ability to generate income from its assets effectively.
Peer comparison
Jun 30, 2025