Qorvo Inc (QRVO)

Operating return on assets (Operating ROA)

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Operating income	US$ in thousands	91,701	183,168	1,226,070	906,627	423,216
Total assets	US$ in thousands	6,554,640	6,691,900	7,509,070	7,221,470	6,560,680
Operating ROA		1.40%	2.74%	16.33%	12.55%	6.45%

March 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $91,701K ÷ $6,554,640K
= 1.40%

Qorvo Inc's operating return on assets (operating ROA) has shown a fluctuating trend over the past five years. The operating ROA decreased from 6.45% in 2020 to 2.74% in 2023, indicating a decline in the company's ability to generate operating profits from its assets during that period. Subsequently, there was a significant drop in operating ROA to 1.40% in 2024, reflecting a continued decrease in the efficiency of asset utilization for generating operating income.

The high operating ROA of 16.33% in 2022 suggests that the company was able to generate substantial operating profits relative to its assets during that year, potentially due to improved operational efficiency or increased revenue generation. However, the declining trend in the following years indicates a possible decrease in the company's overall profitability in relation to its asset base.

It would be advisable for stakeholders and investors to further investigate the factors contributing to the fluctuating operating ROA to assess the company's operational performance, efficiency, and profitability going forward. Additional analysis and comparison with industry peers may provide valuable insights into the company's financial health and sustainability.