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.