Plexus Corp (PLXS)

Operating return on assets (Operating ROA)

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Operating income	US$ in thousands	167,732	195,820	178,185	176,268	153,372
Total assets	US$ in thousands	3,153,820	3,321,170	3,393,220	2,461,890	2,289,850
Operating ROA		5.32%	5.90%	5.25%	7.16%	6.70%

September 30, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $167,732K ÷ $3,153,820K
= 5.32%

Operating return on assets (operating ROA) is a key financial ratio that measures a company's ability to generate operating income from its assets. For Plexus Corp, the operating ROA has fluctuated over the past five years, as indicated by the data provided.

In 2024, Plexus Corp's operating ROA was 5.32%, showing a slight decrease from the previous year's figure of 5.90%. This downward trend suggests that the company's operating income generated from its assets decreased in 2024 compared to 2023.

Comparing the 2024 figure to 2022 and 2021, Plexus Corp's operating ROA of 5.32% is lower than the respective figures of 5.25% and 7.16%, indicating relatively weaker performance in utilizing its assets to generate operating income in 2024.

However, when compared to the operating ROA in 2020 of 6.70%, it is evident that Plexus Corp's operating performance in 2024 was weaker, signifying a decline in the company's efficiency in generating operating income from its assets over the past few years.

Overall, based on the trend observed in Plexus Corp's operating ROA, the company may need to focus on improving asset utilization efficiency to enhance its operating income generation in the future.