NXP Semiconductors NV (NXPI)

Operating return on assets (Operating ROA)

Dec 31, 2024 Sep 30, 2024 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
Operating income (ttm) US$ in thousands 3,414,000 3,651,000 3,653,000 3,696,000 3,666,000 3,734,000 3,743,000 3,749,000 3,797,000 3,624,000 3,334,000 2,964,000 2,583,000 2,239,000 1,560,000 842,000 418,000 152,000 353,000 731,000
Total assets US$ in thousands 24,385,000 23,669,000 23,196,000 23,320,000 24,353,000 23,996,000 23,795,000 23,732,000 23,236,000 22,940,000 22,539,000 21,321,000 20,864,000 20,010,000 20,622,000 19,392,000 19,847,000 21,122,000 21,057,000 19,511,000
Operating ROA 14.00% 15.43% 15.75% 15.85% 15.05% 15.56% 15.73% 15.80% 16.34% 15.80% 14.79% 13.90% 12.38% 11.19% 7.56% 4.34% 2.11% 0.72% 1.68% 3.75%

December 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $3,414,000K ÷ $24,385,000K
= 14.00%

Operating return on assets (operating ROA) is a key financial ratio that measures a company's efficiency in generating profits from its assets used in its core operations. Analyzing the data provided for NXP Semiconductors NV, we can observe a fluctuating trend in their operating ROA over the quarters.

From March 31, 2020, to June 30, 2020, the operating ROA decreased significantly from 3.75% to 1.68%. This decline suggests a decrease in profitability relative to the assets employed in operations. However, there was a subsequent improvement in the ratio, reaching 4.34% by March 31, 2021.

The operating ROA continued to increase steadily, reaching double digits by September 30, 2021, with a ratio of 11.19%. This upward trend persisted over the subsequent quarters, peaking at 16.34% by December 31, 2022.

Towards the end of the analyzed period, there was a slight decline in the operating ROA, dropping to 14.00% by December 31, 2024. Although this ratio decreased from its peak, it still remained relatively high compared to the earlier quarters.

Overall, the trend in NXP Semiconductors NV's operating ROA indicates fluctuations in profitability relative to its asset base over the quarters, with an overall positive trajectory showing improvements in profitability efficiency, despite a slight decline towards the end of the period.