Proto Labs Inc (PRLB)
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 | 28,167 | -97,983 | 40,342 | 59,836 | 79,856 |
| Total assets | US$ in thousands | 772,353 | 802,168 | 928,582 | 744,204 | 673,667 |
| Operating ROA | 3.65% | -12.21% | 4.34% | 8.04% | 11.85% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $28,167K ÷ $772,353K
= 3.65%
Proto Labs Inc's operating return on assets (operating ROA) has shown a declining trend over the past five years, decreasing from 11.85% in 2019 to 3.67% in 2023. This indicates a decreasing efficiency in generating operating profit relative to its total assets. A lower operating ROA could be attributed to various factors such as increased operating expenses, inefficiencies in asset utilization, or lower operating income.
The declining trend in operating ROA warrants further investigation into the company's operational performance and asset management strategies. Management may need to focus on improving operational efficiency, streamlining costs, and enhancing asset utilization to boost the company's profitability and overall financial performance. Additionally, investors and stakeholders should closely monitor Proto Labs Inc's future financial reports to assess whether this downward trend in operating ROA is temporary or a persistent concern requiring strategic intervention.
Peer comparison
Dec 31, 2023