Smart Global Holdings Inc (SGH)

Operating return on assets (Operating ROA)

		Mar 1, 2024	Dec 1, 2023	Aug 25, 2023	May 26, 2023	Feb 24, 2023	Nov 25, 2022	Aug 26, 2022	May 27, 2022	Feb 25, 2022	Nov 26, 2021	Aug 27, 2021	May 28, 2021	Feb 26, 2021	Nov 27, 2020	May 29, 2020	Feb 28, 2020	Nov 29, 2019	Aug 30, 2019	May 31, 2019	Mar 1, 2019
Operating income (ttm)	US$ in thousands	-6,032	-4,797	8,745	33,444	62,034	65,664	67,176	4,953	-18,357	-6,970	-15,705	33,522	38,784	31,725	35,533	32,868	47,163	89,081	122,630	163,925
Total assets	US$ in thousands	1,517,450	1,630,860	1,505,960	1,591,190	1,640,080	1,807,660	1,572,060	1,554,050	1,508,510	1,323,700	1,344,800	1,189,060	820,807	784,725	792,300	808,437	782,733	704,137	670,013	776,408
Operating ROA		-0.40%	-0.29%	0.58%	2.10%	3.78%	3.63%	4.27%	0.32%	-1.22%	-0.53%	-1.17%	2.82%	4.73%	4.04%	4.48%	4.07%	6.03%	12.65%	18.30%	21.11%

March 1, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $-6,032K ÷ $1,517,450K
= -0.40%

Operating Return on Assets (Operating ROA) is a key financial ratio that indicates the efficiency of a company in generating operating income from its assets.

Looking at the historical trend of Smart Global Holdings Inc's Operating ROA, the ratio has shown significant fluctuation over the past few periods. From March 2019 to March 2024, there is a clear pattern of variation in the operating performance as depicted by the Operating ROA values.

The lowest Operating ROA was -1.22% in February 2022, indicating that the company's operating income was insufficient to cover the assets employed in its operations, resulting in a negative return. On the other hand, the highest Operating ROA recorded was 21.11% in March 2019, reflecting a strong ability to generate operating income relative to the assets utilized.

Overall, the trend reveals that Smart Global Holdings Inc has experienced a mix of positive and negative Operating ROA values, suggesting fluctuations in operating efficiency and profitability over time. Analyzing the factors contributing to these fluctuations will be crucial in understanding the company's operational performance and formulating strategies for improvement.