Semtech Corporation (SMTC)

Return on assets (ROA)

		Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Jan 26, 2020
Net income	US$ in thousands	-1,092,030	61,380	125,664	59,903	31,871
Total assets	US$ in thousands	1,373,740	2,569,630	1,130,910	1,082,100	1,052,430
ROA		-79.49%	2.39%	11.11%	5.54%	3.03%

January 28, 2024 calculation

ROA = Net income ÷ Total assets
= $-1,092,030K ÷ $1,373,740K
= -79.49%

Semtech Corporation's Return on Assets (ROA) has shown significant fluctuations over the past five years. In the most recent fiscal year ending January 28, 2024, the ROA was negative at -79.49%, indicating that the company generated a loss relative to its total assets. This sharp decline from the previous year's ROA of 2.39% raises concerns about the company's ability to efficiently utilize its assets to generate profits.

Comparing the ROA to prior years, Semtech's performance was strongest in the fiscal year ending January 30, 2022, with an ROA of 11.11%. This indicates that during that period, the company was effective in generating profits relative to its total assets. However, the ROA declined in the following year to 5.54% and further to 3.03% in the fiscal year ending January 26, 2020, showing a downward trend in asset efficiency.

Overall, Semtech Corporation's ROA performance has been volatile, with fluctuations that suggest challenges in consistently generating profits in relation to the company's asset base. This variability raises questions about the company's operational efficiency and its ability to maximize returns on its assets over time.