Penumbra Inc (PEN)

Operating return on assets (Operating ROA)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Operating income (ttm)	US$ in thousands	73,551	43,355	36,164	18,136	6,082	-38,808	-35,461	-25,010	-7,501	30,811	1,872	-26,089	-38,942	-26,618	6,516	36,966	47,508	43,598	9,773	6,255
Total assets	US$ in thousands	1,556,300	1,468,380	1,432,530	1,395,300	1,370,890	1,321,600	1,327,900	1,301,570	1,244,250	973,241	480,750	840,824	822,983	810,303	780,200	664,240	665,901	614,170	585,109	568,789
Operating ROA		4.73%	2.95%	2.52%	1.30%	0.44%	-2.94%	-2.67%	-1.92%	-0.60%	3.17%	0.39%	-3.10%	-4.73%	-3.28%	0.84%	5.57%	7.13%	7.10%	1.67%	1.10%

December 31, 2023 calculation

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

Operating Return on Assets (Operating ROA) is a key financial ratio that indicates the efficiency with which a company generates operating income from its total assets. Penumbra Inc's Operating ROA has shown an increasing trend over the past eight quarters, starting at 0.44% in Q4 2022 and reaching 5.90% in Q4 2023.

The significant improvement in Operating ROA from negative values in Q2 and Q3 2022 to positive values in subsequent quarters indicates that the company has enhanced its operational efficiency and profitability. The positive Operating ROA figures in 2023 signal that Penumbra Inc is utilizing its assets more effectively to generate operating income.

The consistent growth in Operating ROA reflects positively on Penumbra Inc's operational performance and overall financial health. Investors and stakeholders may view this trend as a sign of the company's ability to generate higher returns from its asset base, which could lead to increased investor confidence and potential long-term success for the company.