Photronics Inc (PLAB)

Return on assets (ROA)

		Oct 31, 2023	Oct 31, 2022	Oct 31, 2021	Oct 31, 2020	Oct 31, 2019
Net income	US$ in thousands	125,485	118,786	55,449	33,820	29,793
Total assets	US$ in thousands	1,526,220	1,315,830	1,294,200	1,188,180	1,118,660
ROA		8.22%	9.03%	4.28%	2.85%	2.66%

October 31, 2023 calculation

ROA = Net income ÷ Total assets
= $125,485K ÷ $1,526,220K
= 8.22%

To analyze the return on assets (ROA) of Photronics, Inc., we can observe a trend of improvement over the past five years. The ROA has increased from 2.66% in 2019 to 8.22% in 2023, indicating an upward trend in the company's efficiency in generating profits from its assets. This improvement suggests that the company has been more effective in utilizing its assets to generate earnings for its shareholders. The consistent increase in ROA indicates improved operational efficiency and financial performance over the years. It reflects positively on the company's management of its resources and potential for sustainable growth. The rising ROA may signal increasing profitability and effective utilization of assets, which can be an encouraging factor for potential investors and stakeholders.