Masimo Corporation (MASI)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 81,500 | 143,500 | 229,639 | 240,302 | 196,216 |
| Total assets | US$ in thousands | 3,041,500 | 3,210,600 | 1,887,000 | 1,712,550 | 1,396,130 |
| ROA | 2.68% | 4.47% | 12.17% | 14.03% | 14.05% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $81,500K ÷ $3,041,500K
= 2.68%
Masimo Corporation's Return on Assets (ROA) has exhibited a declining trend over the past five years based on the provided data. The ROA decreased from 14.05% in 2019 to 2.68% in 2023. This significant decrease indicates a reduction in the company's ability to generate profits from its assets over the period.
While in 2021, Masimo Corporation had a comparatively high ROA of 12.17%, the subsequent years saw a notable decline, with ROA dropping to 4.47% in 2022 and further to 2.68% in 2023. This downward trend suggests that the company may be facing challenges in effectively utilizing its assets to generate profits.
A declining ROA can result from various factors such as increasing expenses, declining revenues, or inefficient asset management. It is essential for Masimo Corporation to address the underlying issues contributing to the decreasing ROA to improve its profitability and efficiency in utilizing assets in the future.
Peer comparison
Dec 31, 2023