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