Semtech Corporation (SMTC)

Return on assets (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
Net income (ttm)	US$ in thousands	-1,092,030	-500,680	-439,684	-6,084	61,380	147,197	158,878	140,213	125,664	106,516	90,576	73,768	59,903	47,181	42,691	31,932	35,591	52,580	50,748	70,551
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
ROA		-79.49%	-24.57%	-20.75%	-0.24%	2.39%	10.03%	13.24%	12.56%	11.11%	9.50%	8.23%	6.90%	5.54%	4.50%	4.05%	3.12%	3.38%	5.06%	4.80%	6.70%

January 28, 2024 calculation

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

Semtech Corporation's return on assets (ROA) has displayed significant fluctuations over the past several quarters. The ROA was negative in the most recent quarter at -79.49%, indicating that the company's net income is insufficient to cover its total assets. This suggests potential financial distress or inefficiency in asset utilization.

Looking at the trend over the previous quarters, there has been a general downward trend in ROA from the peak of 13.24% in the quarter ending July 31, 2022. The company's ROA turned negative in the quarter ending Jan 28, 2024, indicating a sharp decline in profitability and asset utilization compared to previous quarters.

The positive ROA figures observed in some quarters suggest that Semtech Corporation has previously been able to generate a positive return on its assets. However, the recent negative and decreasing ROA figures raise concerns about the company's ability to generate earnings from its assets efficiently.

Overall, Semtech Corporation's ROA trend indicates a need for further investigation into its financial performance, asset management, and profitability drivers to address the recent decline and potentially improve its overall performance.