MaxLinear Inc (MXL)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -73,147 | 125,040 | 41,969 | -98,593 | -19,898 |
| Total assets | US$ in thousands | 1,080,260 | 1,180,020 | 1,050,380 | 1,022,440 | 705,791 |
| ROA | -6.77% | 10.60% | 4.00% | -9.64% | -2.82% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $-73,147K ÷ $1,080,260K
= -6.77%
MaxLinear Inc's return on assets (ROA) provides insight into the company's ability to generate profits from its assets. The ROA for the years 2019 through 2023 reveals fluctuating performance. In 2022, the ROA was notably high at 10.60%, signifying efficient asset utilization and profitability. However, a stark decline was observed in 2023, with the ROA plunging to -6.77%, indicating a significant decrease in profitability relative to the company's total assets.
The negative ROA in 2023 may raise concerns about the company's effectiveness in generating earnings from its assets. It is important for stakeholders to closely monitor MaxLinear Inc's asset management and operational efficiency to understand the underlying factors contributing to this decline in ROA and to assess the company's future prospects.
Peer comparison
Dec 31, 2023