Masimo Corporation (MASI)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -266,700 | 136,500 | 210,000 | 275,800 | 255,800 |
| Total assets | US$ in thousands | 2,625,700 | 3,041,500 | 3,210,600 | 1,887,000 | 1,712,550 |
| Operating ROA | -10.16% | 4.49% | 6.54% | 14.62% | 14.94% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $-266,700K ÷ $2,625,700K
= -10.16%
Masimo Corporation's operating return on assets (Operating ROA) has shown a declining trend over the years based on the provided data. As of December 31, 2020, the Operating ROA was 14.94%, indicating that the company generated $0.1494 in operating income for every $1 of assets. However, this ratio decreased to 14.62% by the end of 2021, suggesting a slight drop in the efficiency of asset utilization.
The trend continued with a more significant decline to 6.54% by December 31, 2022, and further dropped to 4.49% by December 31, 2023. These reductions in Operating ROA may indicate challenges in efficiently generating operating income relative to the assets deployed in the business.
The most concerning observation is the negative Operating ROA of -10.16% as of December 31, 2024. This negative ratio implies that the company's operating income was insufficient to cover the asset base, possibly signaling operational inefficiencies or financial difficulties during that period.
It is important for stakeholders to closely monitor Masimo Corporation's operating performance and asset utilization efficiency to understand the factors driving these changes in Operating ROA and to assess the company's overall financial health and operational effectiveness.
Peer comparison
Dec 31, 2024