Photronics Inc (PLAB)

Operating return on assets (Operating ROA)

		Oct 31, 2024	Jul 28, 2024	Apr 28, 2024	Jan 28, 2024	Oct 31, 2023	Jul 30, 2023	Apr 30, 2023	Jan 29, 2023	Oct 31, 2022	Jul 31, 2022	May 1, 2022	Jan 30, 2022	Oct 31, 2021	Aug 1, 2021	May 2, 2021	Jan 31, 2021	Oct 31, 2020	Aug 2, 2020	May 3, 2020	Feb 2, 2020
Operating income (ttm)	US$ in thousands	221,517	230,474	243,590	254,583	253,051	248,807	247,272	229,628	211,868	184,846	149,579	120,985	94,554	76,020	67,494	59,391	63,928	70,419	63,883	60,378
Total assets	US$ in thousands	1,712,060	1,645,100	1,603,450	1,582,840	1,526,220	1,503,340	1,451,020	1,441,680	1,315,830	1,349,600	1,331,890	1,335,250	1,294,200	1,281,760	1,265,990	1,232,060	1,188,180	1,195,840	1,133,890	1,125,460
Operating ROA		12.94%	14.01%	15.19%	16.08%	16.58%	16.55%	17.04%	15.93%	16.10%	13.70%	11.23%	9.06%	7.31%	5.93%	5.33%	4.82%	5.38%	5.89%	5.63%	5.36%

October 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $221,517K ÷ $1,712,060K
= 12.94%

Operating return on assets (operating ROA) is a key financial metric that measures a company's operating income generated per dollar of assets. For Photronics Inc, the operating ROA has fluctuated over the past few quarters.

From Feb 2020 to Jan 2021, the operating ROA remained relatively stable, hovering around the 5-6% range. However, there was a notable increase in operating ROA from Jan 2021 to Jul 2022, reaching a peak of 16.10% in Oct 2022. This indicates that Photronics Inc was able to generate higher operating income relative to its assets during this period.

Subsequently, there was a slight decline in operating ROA from Jul 2022 to Jan 2023, followed by a significant increase to 17.04% in Apr 2023. The company maintained a strong performance in generating operating income compared to its assets during this period.

However, there was a downward trend in operating ROA from Apr 2023 to Oct 2024, where it decreased gradually from 17.04% to 12.94%. This decline suggests that Photronics Inc's ability to generate operating income from its assets weakened over these quarters.

Overall, the fluctuation in operating ROA for Photronics Inc reflects changes in the company's operational efficiency and profitability over time. Investors and analysts may want to further investigate the factors influencing these fluctuations to gain a deeper understanding of the company's financial performance.