Lumentum Holdings Inc (LITE)
Return on assets (ROA)
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -546,500 | -131,600 | 198,900 | 397,300 | 135,500 |
| Total assets | US$ in thousands | 3,931,900 | 4,632,100 | 4,162,200 | 3,551,600 | 3,292,600 |
| ROA | -13.90% | -2.84% | 4.78% | 11.19% | 4.12% |
June 30, 2024 calculation
ROA = Net income ÷ Total assets
= $-546,500K ÷ $3,931,900K
= -13.90%
Lumentum Holdings Inc's return on assets (ROA) has shown fluctuating trends over the past five years. The ROA was 4.12% in June 2020, increased to 11.19% in June 2021, and further declined to 4.78% in June 2022. However, the company experienced a significant decrease in ROA to -2.84% in June 2023, followed by a substantial decline to -13.90% in June 2024.
The negative ROA figures for 2023 and 2024 indicate that the company's net income generated from its assets was insufficient to cover the total assets, resulting in a loss-making scenario. This could be attributed to various factors such as increasing expenses, declining revenues, or ineffective asset utilization.
Overall, the decreasing trend in ROA from 2021 to 2024 raises concerns about Lumentum Holdings Inc's efficiency in generating earnings from its assets. Investors and stakeholders may closely monitor the company's strategies to improve ROA and enhance overall profitability in the future.
Peer comparison
Jun 30, 2024