MaxLinear Inc (MXL)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	-38,221	180,243	65,245	-101,139	-22,057
Total assets	US$ in thousands	1,080,260	1,180,020	1,050,380	1,022,440	705,791
Operating ROA		-3.54%	15.27%	6.21%	-9.89%	-3.13%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $-38,221K ÷ $1,080,260K
= -3.54%

To analyze MaxLinear Inc's operating return on assets (operating ROA), we examine the trend in the ratio over the past five years. Operating ROA is a measure of a company's operating income generated per dollar of assets, indicating how efficiently management uses assets to generate earnings.

In 2023, the operating ROA decreased to -1.48% from 15.70% in 2022, signaling a significant decline in the company's ability to generate operating income from its assets. This downturn could be attributed to various factors such as an increase in operating expenses, decrease in revenue, or a combination of both.

The significant 2023 decline contrasts with the positive trend in the two preceding years, 2022 and 2021, where the operating ROA improved to 15.70% and 6.42%, respectively. These increases indicated improved efficiency in the utilization of assets to generate operating income, potentially resulting from better cost management or increased revenue generation.

However, the ratio was negative in 2020 and 2019, at -9.51% and -2.75% respectively, indicating that the company's operating income was insufficient to cover the costs associated with its assets in those years.

Overall, the fluctuating trend in MaxLinear Inc's operating ROA reflects varying levels of efficiency in generating operating income from its assets over the past five years. The negative 2023 performance raises potential concerns regarding the company's operational effectiveness and the need for further analysis to identify the underlying causes and potential areas for improvement.