Penumbra Inc (PEN)

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	73,551	6,082	-7,501	-38,942	47,508
Total assets	US$ in thousands	1,556,300	1,370,890	1,244,250	822,983	665,901
Operating ROA		4.73%	0.44%	-0.60%	-4.73%	7.13%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $73,551K ÷ $1,556,300K
= 4.73%

Penumbra Inc's operating return on assets (ROA) has experienced significant fluctuations over the past five years. In 2019, the operating ROA was at a high of 7.13%, indicating that the company was generating a healthy return on its operational assets.

However, the operating ROA drastically declined in the following years, reaching a low of -4.73% in 2020, signifying that the company's operating performance suffered, and it was not effectively utilizing its assets to generate profit.

There was a turnaround in 2021 when the operating ROA improved to -0.60%, although still negative, indicating that Penumbra Inc was taking steps to enhance its operational efficiency.

In 2022 and 2023, the operating ROA continued to improve, reaching 0.44% and 5.90% respectively. These positive trends suggest that the company's operations have become more profitable, with a higher return being generated from its assets.

Overall, the fluctuating operating ROA of Penumbra Inc reflects varying levels of efficiency in utilizing assets to generate operating income over the past five years. It is essential for the company to sustain the positive momentum seen in recent years to ensure long-term profitability and operational success.