Mercury Systems Inc (MRCY)

Operating return on assets (Operating ROA)

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 Dec 31, 2019 Sep 30, 2019
Operating income (ttm) US$ in thousands -147,754 -148,684 -101,074 -54,692 -21,685 14,830 22,831 29,991 31,610 26,399 38,156 56,656 81,001 85,014 89,644 92,356 91,062 85,494 81,214 80,250
Total assets US$ in thousands 2,378,900 2,378,180 2,436,250 2,400,760 2,391,370 2,383,870 2,347,950 2,349,040 2,304,420 2,259,840 2,230,770 1,965,090 1,955,140 1,903,320 1,949,170 1,653,180 1,610,720 1,771,640 1,512,620 1,473,850
Operating ROA -6.21% -6.25% -4.15% -2.28% -0.91% 0.62% 0.97% 1.28% 1.37% 1.17% 1.71% 2.88% 4.14% 4.47% 4.60% 5.59% 5.65% 4.83% 5.37% 5.44%

June 30, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $-147,754K ÷ $2,378,900K
= -6.21%

The operating return on assets (operating ROA) for Mercury Systems Inc has fluctuated over the past few quarters, indicating varying levels of operational efficiency and asset utilization. The trend shows a decline from 5.44% in December 2019 to -6.21% in June 2024. This suggests that the company's ability to generate operating income from its assets has deteriorated significantly over this period.

The negative operating ROA figures in recent quarters indicate that Mercury Systems Inc is not effectively utilizing its assets to generate operating income, resulting in operating losses relative to its asset base. This could be attributed to factors such as operational inefficiencies, declining sales, or an increase in operating expenses.

It is important for the company to address the declining trend in operating ROA as it signifies a potential deterioration in overall operational performance and financial health. Management should focus on improving operational efficiency, optimizing asset utilization, and controlling costs to enhance the company's profitability and return on assets in the future.


Peer comparison

Jun 30, 2024

Company name
Symbol
Operating ROA
Mercury Systems Inc
MRCY
-6.21%
Hubbell Inc
HUBB
15.02%
Universal Display
OLED
13.01%
Vishay Intertechnology Inc
VSH
11.47%