Masimo Corporation (MASI)

Operating return on assets (Operating ROA)

		Dec 31, 2024	Sep 30, 2024	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
Operating income (ttm)	US$ in thousands	-266,700	136,400	131,500	132,500	136,500	165,800	195,400	188,200	209,900	214,011	226,811	269,811	275,775	263,259	255,357	252,477	255,823	252,485	244,419	234,203
Total assets	US$ in thousands	2,625,700	3,087,800	2,893,900	2,957,700	3,041,500	2,995,900	3,011,200	3,115,500	3,210,600	3,056,400	2,961,100	1,908,800	1,887,000	1,766,780	1,681,690	1,597,810	1,712,550	1,713,140	1,635,630	1,474,540
Operating ROA		-10.16%	4.42%	4.54%	4.48%	4.49%	5.53%	6.49%	6.04%	6.54%	7.00%	7.66%	14.14%	14.61%	14.90%	15.18%	15.80%	14.94%	14.74%	14.94%	15.88%

December 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $-266,700K ÷ $2,625,700K
= -10.16%

Masimo Corporation's operating return on assets (operating ROA) has exhibited fluctuations over the period from March 31, 2020, to December 31, 2024. The trend indicates a generally positive operating ROA performance in the initial period, with percentages ranging from 14.74% to 15.88%. However, from June 30, 2022, the operating ROA experienced a notable decline, dropping to 7.66% and subsequently decreasing to 4.49% by December 31, 2023.

Furthermore, the operating ROA continued to decline significantly, reaching negative territory at -10.16% as of December 31, 2024. This negative value suggests that Masimo Corporation's operating income generated from its assets was insufficient to cover the costs associated with those assets.

The declining trend in operating ROA raises concerns about Masimo Corporation's operational efficiency and profitability. It may indicate challenges in effectively utilizing assets to generate earnings or potential difficulties in controlling operating expenses.

Overall, a deteriorating trend in operating ROA signals the need for Masimo Corporation to reassess its operational strategies, improve asset utilization, and potentially implement cost-cutting measures to enhance profitability and financial performance in the future.