Masimo Corporation (MASI)
Operating return on assets (Operating ROA)
| 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 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 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 | 221,216 | 213,565 | 210,574 | 210,182 |
| Total assets | US$ in thousands | 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 | 1,396,130 | 1,314,210 | 1,229,850 | 1,179,380 |
| Operating ROA | 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% | 15.84% | 16.25% | 17.12% | 17.82% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $136,500K ÷ $3,041,500K
= 4.49%
Operating return on assets (Operating ROA) is a key financial ratio that measures a company's operating profitability relative to its total assets. It indicates how efficient a company is at generating profits from its assets used in its core operations.
Analyzing Masimo Corporation's Operating ROA over the past years, we observe a fluctuating trend. The ratio has shown a general decline from 17.82% in March 2019 to 4.49% in December 2023. This indicates a decrease in the company's ability to generate operating profit from its total assets over the period.
The trend reveals some potential challenges or inefficiencies in the company's operations during the period. A significant drop in the ratio from 14.14% in March 2022 to 4.49% in December 2023 points to a substantial decrease in operating profitability relative to assets deployed. It is important for stakeholders to investigate the reasons behind this decline and assess the company's operational efficiency and asset utilization.
Additionally, the ratio peaked at 17.82% in March 2019, indicating a period of strong operational performance in utilizing assets to generate operating profit. However, it is essential to understand the factors that contributed to this peak and determine if they can be replicated in order to improve the company's Operating ROA in the future.
Overall, the fluctuating pattern of Masimo Corporation's Operating ROA highlights the importance of close monitoring and analysis of operating profitability relative to asset utilization to assess the company's operational efficiency and performance over time.
Peer comparison
Dec 31, 2023