Masimo Corporation (MASI)

Return on assets (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
Net income (ttm)	US$ in thousands	-304,900	78,600	79,400	79,100	81,500	88,500	115,800	118,200	143,500	170,858	190,729	222,864	229,639	232,050	223,684	229,221	240,302	222,554	222,234	211,350
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
ROA		-11.61%	2.55%	2.74%	2.67%	2.68%	2.95%	3.85%	3.79%	4.47%	5.59%	6.44%	11.68%	12.17%	13.13%	13.30%	14.35%	14.03%	12.99%	13.59%	14.33%

December 31, 2024 calculation

ROA = Net income (ttm) ÷ Total assets
= $-304,900K ÷ $2,625,700K
= -11.61%

The return on assets (ROA) of Masimo Corporation has shown a declining trend over the past few years, starting at a strong level of 14.33% as of March 31, 2020. The ROA gradually decreased to 2.68% by December 31, 2023. However, in the following periods, the ROA saw a significant drop, reaching a negative value of -11.61% by December 31, 2024.

This decreasing trend in ROA indicates a decline in the company's ability to generate profits relative to its total assets. A negative ROA value suggests that the company is experiencing difficulties in generating earnings from its assets, which could be a cause for concern. Further analysis of the company's financial performance and efficiency in asset utilization would be warranted to understand the underlying reasons for this decline and to assess the company's overall financial health.