Lumentum Holdings Inc (LITE)
Operating return on assets (Operating ROA)
| 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 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | -434,000 | -356,500 | -293,300 | -210,000 | -115,700 | -4,400 | 93,800 | 200,900 | 303,300 | 293,700 | 513,800 | 543,900 | 527,000 | 508,200 | 283,800 | 243,300 | 204,100 | 163,300 | 44,400 | -18,900 |
| Total assets | US$ in thousands | 3,931,900 | 4,204,500 | 4,656,000 | 4,545,000 | 4,632,100 | 4,354,000 | 4,418,100 | 4,387,400 | 4,162,200 | 4,133,500 | 3,615,700 | 3,519,000 | 3,551,600 | 3,745,900 | 3,468,200 | 3,387,400 | 3,292,600 | 3,268,700 | 3,221,200 | 2,867,800 |
| Operating ROA | -11.04% | -8.48% | -6.30% | -4.62% | -2.50% | -0.10% | 2.12% | 4.58% | 7.29% | 7.11% | 14.21% | 15.46% | 14.84% | 13.57% | 8.18% | 7.18% | 6.20% | 5.00% | 1.38% | -0.66% |
June 30, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $-434,000K ÷ $3,931,900K
= -11.04%
Lumentum Holdings Inc's operating return on assets (operating ROA) has shown a fluctuating trend over the past few quarters. The operating ROA has been negative in recent quarters, with the most recent figure standing at -11.04% as of June 30, 2024. This indicates that the company's operating income generated from its assets has been insufficient to cover its operating expenses during this period.
The operating ROA began to decline from the peak of 15.46% in March 2022, and has been on a downward trajectory since then. The decrease in the operating ROA could be attributed to various factors such as increased operating expenses, declining revenues, or inefficient asset utilization.
It is important for Lumentum Holdings Inc to closely monitor and analyze the reasons behind the negative trend in operating ROA and take corrective actions to improve the efficiency of its operations and asset utilization. A negative operating ROA over an extended period can signal potential operational challenges that may impact the company's profitability and long-term sustainability.
Peer comparison
Jun 30, 2024