MACOM Technology Solutions Holdings Inc (MTSI)

Operating return on assets (Operating ROA)

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Operating income	US$ in thousands	73,666	107,400	132,674	81,002	3,388
Total assets	US$ in thousands	1,755,640	1,553,240	1,571,820	1,134,140	1,146,430
Operating ROA		4.20%	6.91%	8.44%	7.14%	0.30%

September 30, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $73,666K ÷ $1,755,640K
= 4.20%

MACOM Technology Solutions Holdings Inc's operating return on assets (operating ROA) has exhibited fluctuations over the past five years. In 2024, the operating ROA stands at 4.20%, declining from the previous year's level of 6.91%. This decrease indicates a lower ability to generate operating profits from its assets compared to the prior period.

Comparing the current operating ROA to earlier years, we see a downward trend from 2022 where it was at 8.44%, decreasing to 7.14% in 2021. Notably, in 2020, the operating ROA was only at 0.30%, highlighting a substantial improvement over the past few years.

Overall, although the current operating ROA has declined compared to the prior year, it is still higher than the 2020 figures, suggesting an improvement in operating efficiency and asset utilization over a longer time frame. This trend merits further investigation to understand the factors driving these changes and to assess the company's overall financial performance.