Lumentum Holdings Inc (LITE)
Operating return on assets (Operating ROA)
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -434,000 | -115,700 | 303,300 | 527,000 | 204,100 |
| Total assets | US$ in thousands | 3,931,900 | 4,632,100 | 4,162,200 | 3,551,600 | 3,292,600 |
| Operating ROA | -11.04% | -2.50% | 7.29% | 14.84% | 6.20% |
June 30, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $-434,000K ÷ $3,931,900K
= -11.04%
Lumentum Holdings Inc's operating return on assets (operating ROA) has shown a declining trend over the past five years. The company's operating ROA was 6.20% in June 2020, increased to 14.84% in June 2021, and then decreased to 7.29% in June 2022. However, there was a significant decline in operating ROA to -2.50% in June 2023, followed by a further decrease to -11.04% in June 2024.
This declining trend in operating ROA indicates that Lumentum may be facing challenges in generating operating profits relative to its total assets. A negative operating ROA suggests that the company is not efficiently utilizing its assets to generate operating income, which can be a cause for concern for investors and stakeholders.
Further analysis of factors impacting operating ROA, such as changes in operating income, total assets, or operational efficiency, would be necessary to understand the reasons behind this declining trend and to identify potential strategies for improvement.
Peer comparison
Jun 30, 2024