Sanmina Corporation (SANM)
Operating return on assets (Operating ROA)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 335,494 | 455,658 | 349,479 | 255,936 | 219,144 |
| Total assets | US$ in thousands | 4,822,840 | 4,873,970 | 4,835,530 | 4,206,720 | 3,772,660 |
| Operating ROA | 6.96% | 9.35% | 7.23% | 6.08% | 5.81% |
September 30, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $335,494K ÷ $4,822,840K
= 6.96%
The operating return on assets (ROA) of Sanmina Corporation has fluctuated over the past five years. In the most recent fiscal year ending September 30, 2024, the operating ROA was 6.96%, showing a decrease from the previous year's 9.35%. This decline raises questions about the efficiency of the company's operations in generating profits from its assets.
Despite the decrease in 2024, the operating ROA for Sanmina Corporation has generally shown an upward trend over the five-year period. The company experienced notable improvements in 2023 and 2022, with operating ROA reaching 9.35% and 7.23%, respectively. These increments suggest that the company's operational efficiency and asset utilization were relatively stronger during these years.
Comparing the operating ROA to previous years, the performance in 2021 and 2020 was relatively lower, with values of 6.08% and 5.81%, respectively. This indicates that the company may have faced challenges or inefficiencies in generating operating income from its assets during those periods.
Overall, the fluctuating trend in Sanmina Corporation's operating ROA highlights the importance of monitoring operational efficiency and asset utilization to ensure sustainable profitability and value creation for the company and its stakeholders.
Peer comparison
Sep 30, 2024