Qorvo Inc (QRVO)

Operating return on assets (Operating ROA)

		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	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Operating income (ttm)	US$ in thousands	91,701	-127,259	-76,961	33,173	183,168	642,747	930,028	1,030,826	1,226,069	1,248,540	1,251,733	1,111,017	906,627	715,713	569,579	460,702	423,216	385,109	313,197	290,907
Total assets	US$ in thousands	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	6,560,680	6,519,500	5,848,570	5,926,380
Operating ROA		1.40%	-1.90%	-1.15%	0.50%	2.74%	9.08%	12.61%	14.06%	16.33%	16.37%	16.52%	15.28%	12.55%	10.16%	7.28%	6.69%	6.45%	5.91%	5.36%	4.91%

March 31, 2024 calculation

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

The operating return on assets (operating ROA) of Qorvo Inc has shown fluctuating trends over the past few quarters. The company's operating ROA was significantly positive in the first half of 2022, reaching a peak of 16.33% in March 2022. However, it started to decline in the following quarters and turned negative in the last quarter of 2023, hitting a low of -1.90%.

The improvement in operating ROA in the first half of 2022 indicates that the company was generating a higher operating profit relative to its assets during that period. However, the subsequent decline suggests a decrease in operating efficiency or profitability. The negative operating ROA in the last quarter of 2023 raises concerns about the company's ability to generate profits from its operational activities.

It is crucial for Qorvo Inc to closely monitor and address the factors impacting its operating ROA to ensure sustainable profitability and efficient utilization of its assets in the future.