Qorvo Inc (QRVO)

Operating return on assets (Operating ROA)

		Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020
Operating income (ttm)	US$ in thousands	95,527	97,284	2,690	144,443	91,701	-9,933	-38,260	-10,612	48,600	295,263	645,841	829,125	1,115,151	1,233,212	1,251,733	1,111,017	906,627	715,713	569,579	460,702
Total assets	US$ in thousands	5,933,130	5,963,100	6,503,080	6,447,300	6,554,640	6,699,390	6,718,520	6,686,590	6,691,900	7,076,220	7,374,730	7,330,520	7,509,070	7,626,580	7,576,460	7,271,860	7,221,470	7,041,380	7,824,420	6,882,690
Operating ROA		1.61%	1.63%	0.04%	2.24%	1.40%	-0.15%	-0.57%	-0.16%	0.73%	4.17%	8.76%	11.31%	14.85%	16.17%	16.52%	15.28%	12.55%	10.16%	7.28%	6.69%

March 31, 2025 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $95,527K ÷ $5,933,130K
= 1.61%

Qorvo Inc's operating return on assets (operating ROA) has shown fluctuating trends over the quarters in the provided data. The operating ROA increased steadily from June 30, 2020, at 6.69% to a peak of 16.52% on September 30, 2021. This indicates improving operational efficiency in generating profits relative to its assets during this period.

However, from December 31, 2021, the operating ROA declined to 14.85% on March 31, 2022, and further decreased to 0.73% on June 30, 2022. This sudden drop may suggest inefficiencies in managing assets to generate operating income.

The operating ROA then entered negative territory from June 30, 2023, reaching its lowest point at -0.57% on September 30, 2023. This period signifies a period of poor performance in utilizing assets to generate operating profits.

While there was a slight recovery in the following quarters, with the operating ROA fluctuating around 1-2%, the company has not been able to reach the high levels seen in the earlier quarters. This indicates a need for strategic adjustments to improve asset utilization and operational performance going forward.