Lumentum Holdings Inc (LITE)
Return on assets (ROA)
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 25,900 | -546,500 | -131,600 | 198,900 | 397,300 |
| Total assets | US$ in thousands | 4,218,700 | 3,931,900 | 4,632,100 | 4,162,200 | 3,551,600 |
| ROA | 0.61% | -13.90% | -2.84% | 4.78% | 11.19% |
June 30, 2025 calculation
ROA = Net income ÷ Total assets
= $25,900K ÷ $4,218,700K
= 0.61%
The analysis of Lumentum Holdings Inc.'s return on assets (ROA) over the specified periods reveals a notable decline and subsequent fluctuation in profitability relative to the company's total assets. As of June 30, 2021, the ROA was 11.19%, indicating effective utilization of assets to generate net income during that fiscal year. However, by June 30, 2022, the ROA had decreased significantly to 4.78%, reflecting a reduction in asset efficiency or profitability, possibly attributable to operational challenges, increased costs, or changes in revenue streams.
The downward trend continued into the fiscal year ending June 30, 2023, with the ROA turning negative at -2.84%. This suggests that the company's net income not only diminished but also resulted in losses relative to its asset base, raising concerns about operational performance and asset management. The negative ROA persisted and intensified in the subsequent fiscal year ending June 30, 2024, reaching -13.90%, which indicates a substantial deterioration in profitability and a potential decline in asset productivity or profitability issues.
Remarkably, there is an improvement projected for the fiscal year ending June 30, 2025, with the ROA expected to rise to 0.61%. Although still near zero and below the previous positive levels seen in 2021, this positive shift may indicate some recovery or restructuring efforts that have begun to stabilize income relative to assets.
Overall, the trajectory of Lumentum Holdings Inc.'s ROA demonstrates a significant decline from a robust level in 2021 to consistent negative territory by 2023 and 2024, with a modest recovery anticipated in 2025. These movements highlight challenges the company may be facing in maintaining asset efficiency and profitability, warranting further investigation into underlying operational, strategic, or external factors influencing these financial outcomes.
Peer comparison
Jun 30, 2025