Semtech Corporation (SMTC)
Operating return on assets (Operating ROA)
| Jan 31, 2025 | Jan 31, 2024 | Jan 28, 2024 | Jan 31, 2023 | Jan 29, 2023 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 49,900 | -944,322 | -944,322 | 92,799 | 92,799 |
| Total assets | US$ in thousands | 1,419,260 | 1,373,740 | 1,373,740 | 2,569,630 | 2,569,630 |
| Operating ROA | 3.52% | -68.74% | -68.74% | 3.61% | 3.61% |
January 31, 2025 calculation
Operating ROA = Operating income ÷ Total assets
= $49,900K ÷ $1,419,260K
= 3.52%
The operating return on assets (ROA) for Semtech Corporation displays a fluctuating trend over the years analyzed. In January 2023 and January 2024, the operating ROA was recorded at 3.61% and then dropped significantly to -68.74% in the respective subsequent years. This sharp decline in 2024 indicates that the company's operating profit generated from its assets decreased substantially or may have incurred operating losses during that period.
However, in January 2025, there was a positive recovery as the operating ROA improved to 3.52%. This suggests a potential reversal of the negative trend observed in the previous year, indicating that the company may have been able to enhance its operational efficiency and profitability relative to its asset base.
Overall, while the operating ROA for Semtech Corporation has shown volatility, it is important for stakeholders to monitor future financial performance to assess whether the company can sustain or further improve its operational efficiency and asset utilization to drive profitability in the long term.
Peer comparison
Jan 31, 2025