Sanmina Corporation (SANM)

Operating return on assets (Operating ROA)

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Operating income	US$ in thousands	455,658	349,479	255,936	219,144	286,117
Total assets	US$ in thousands	4,873,970	4,835,530	4,206,720	3,772,660	3,905,510
Operating ROA		9.35%	7.23%	6.08%	5.81%	7.33%

September 30, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $455,658K ÷ $4,873,970K
= 9.35%

To analyze the operating return on assets (operating ROA) of Sanmina Corp, we can see that there has been a general increasing trend over the past five years. The operating ROA increased from 7.68% in 2019 to 9.47% in 2023. This improvement suggests that the company has been effectively utilizing its assets to generate operating income.

The operating ROA measures the ability of a company to generate operating income from its assets. A higher operating ROA indicates that the company is more efficient in utilizing its assets to generate profits.

The consistent improvement in operating ROA over the years reflects positively on Sanmina Corp's operational efficiency. It suggests that the company has been able to increase its operating income relative to its assets, which may be an indication of improved operational effectiveness, cost management, and profitability.

Overall, the increasing trend in Sanmina Corp's operating ROA demonstrates a positive trajectory in the company's operational performance and efficiency in generating operating income from its assets.