Masimo Corporation (MASI)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -304,900 | 81,500 | 143,500 | 229,639 | 240,302 |
| Total assets | US$ in thousands | 2,625,700 | 3,041,500 | 3,210,600 | 1,887,000 | 1,712,550 |
| ROA | -11.61% | 2.68% | 4.47% | 12.17% | 14.03% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $-304,900K ÷ $2,625,700K
= -11.61%
Masimo Corporation's return on assets (ROA) has shown a general downward trend over the years. In December 31, 2020, the ROA was at 14.03%, indicating that the company generated 14.03 cents of profit for every dollar of assets it owned. However, by December 31, 2024, the ROA had declined significantly to -11.61%, suggesting that the company experienced losses and was not effectively utilizing its assets to generate profits.
The decreasing trend in ROA raises concerns about Masimo Corporation's efficiency in using its assets to generate earnings. A declining ROA may indicate poor management of assets, decreasing profitability, or inefficiencies within the company's operations. Investors and stakeholders may view this trend negatively as it reflects a deterioration in the company's overall asset utilization and profitability. Further analysis of the reasons behind this decline in ROA would be necessary to assess the company's financial health and future prospects.
Peer comparison
Dec 31, 2024