Smart Global Holdings Inc (SGH)

Operating return on assets (Operating ROA)

		Aug 25, 2023	Aug 26, 2022	Aug 27, 2021	Aug 28, 2020	Aug 30, 2019
Operating income	US$ in thousands	8,745	67,176	-15,706	41,330	89,081
Total assets	US$ in thousands	1,505,960	1,572,060	1,344,800	786,608	704,137
Operating ROA		0.58%	4.27%	-1.17%	5.25%	12.65%

August 25, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $8,745K ÷ $1,505,960K
= 0.58%

The operating return on assets (operating ROA) for SMART Global Holdings Inc has exhibited varying trends over the past five years. In 2019, the operating ROA was at its highest, standing at 12.27%, indicating efficient utilization of its assets to generate operating income. However, there was a notable decline in 2020, with the operating ROA dropping to 5.70%. This could be attributed to a lower operating income relative to its average total assets.

In 2021, there was a moderate improvement as the operating ROA increased to 6.67%, signaling a better performance in utilizing its assets to generate operating income compared to the previous year. The trend continued in 2022, with a further increase to 9.91%, indicating enhanced efficiency in asset utilization and operating income generation. However, the most recent data for 2023 shows a reduction in operating ROA to 3.77%, suggesting a decline in the efficiency of asset utilization for generating operating income.

Overall, the fluctuating trend of the operating ROA over the past five years indicates varying levels of efficiency in SMART Global Holdings Inc's ability to generate operating income from its assets. Further analysis would be needed to identify the specific factors driving these fluctuations and to assess the company's overall operational performance and asset management strategies.