Mercury Systems Inc (MRCY)
Return on assets (ROA)
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -137,640 | -28,335 | 11,275 | 62,044 | 85,712 |
| Total assets | US$ in thousands | 2,378,900 | 2,391,370 | 2,304,420 | 1,955,140 | 1,610,720 |
| ROA | -5.79% | -1.18% | 0.49% | 3.17% | 5.32% |
June 30, 2024 calculation
ROA = Net income ÷ Total assets
= $-137,640K ÷ $2,378,900K
= -5.79%
Based on the data provided, we observe a decreasing trend in Mercury Systems Inc's return on assets (ROA) over the past five years. The ROA has declined from 5.32% in 2020 to -5.79% in 2024. This indicates that the company's ability to generate profit from its assets has weakened significantly over this period.
The negative ROA values in the most recent years suggest that Mercury Systems Inc is experiencing challenges in utilizing its assets efficiently to generate profits. A negative ROA indicates that the company is generating losses from its assets rather than profits. This could be attributed to factors such as declining revenue, increasing expenses, or inefficient asset utilization.
It is important for Mercury Systems Inc to address the factors contributing to the decline in ROA in order to improve its financial performance and profitability. Management may need to focus on operational efficiency, cost control, revenue growth, and strategic asset allocation to enhance the company's ROA and overall financial health.
Peer comparison
Jun 30, 2024