Semtech Corporation (SMTC)

Operating return on assets (Operating ROA)

		Jan 28, 2024	Oct 29, 2023	Jul 30, 2023	Apr 30, 2023	Jan 29, 2023	Oct 30, 2022	Jul 31, 2022	May 1, 2022	Jan 30, 2022	Oct 31, 2021	Aug 1, 2021	May 2, 2021	Jan 31, 2021	Oct 25, 2020	Jul 26, 2020	Apr 26, 2020	Jan 26, 2020	Oct 27, 2019	Jul 28, 2019	Apr 28, 2019
Operating income (ttm)	US$ in thousands	-944,322	-380,021	-330,279	33,867	92,799	191,422	191,477	164,100	145,017	121,003	105,061	87,157	74,956	66,202	62,597	55,610	52,009	68,980	95,887	119,339
Total assets	US$ in thousands	1,373,740	2,038,130	2,118,600	2,500,020	2,569,630	1,466,850	1,199,830	1,115,920	1,130,910	1,121,300	1,100,000	1,069,620	1,082,100	1,047,970	1,054,030	1,023,350	1,052,430	1,039,140	1,056,310	1,053,410
Operating ROA		-68.74%	-18.65%	-15.59%	1.35%	3.61%	13.05%	15.96%	14.71%	12.82%	10.79%	9.55%	8.15%	6.93%	6.32%	5.94%	5.43%	4.94%	6.64%	9.08%	11.33%

January 28, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $-944,322K ÷ $1,373,740K
= -68.74%

The operating return on assets (ROA) of Semtech Corporation has fluctuated over the analyzed period. Starting from 11.33% in April 2019, it reached a peak of 15.96% in July 2022 before declining to -68.74% in January 2024. The negative operating ROA in January 2024 can be a concern for investors and stakeholders as it signifies that the company's operating income is insufficient to cover its assets. Overall, the trend displays variability, with a general downward trajectory in recent periods, indicating potential challenges in generating operating income relative to its total assets. Further analysis is recommended to understand the factors contributing to this trend and assess the company's operational efficiency and profitability.