Sandisk Corp (SNDK)

Return on assets (ROA)

Jun 30, 2025 Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Dec 31, 2015
Net income US$ in thousands -1,641,000 -672,000 -2,143,000 1,064,000 388,478
Total assets US$ in thousands 12,985,000 13,506,000 13,820,000 15,761,000 9,230,760
ROA -12.64% -4.98% -15.51% 6.75% 4.21%

June 30, 2025 calculation

ROA = Net income ÷ Total assets
= $-1,641,000K ÷ $12,985,000K
= -12.64%

The analysis of Sandisk Corp's return on assets (ROA) across the specified periods reveals notable fluctuations and trends that reflect the company's evolving financial performance and underlying operational efficiency.

As of December 31, 2015, the ROA stood at 4.21%, indicating a modest level of profitability relative to the company's total assets during that period. This suggests that Sandisk was generating a reasonable return on its asset base, consistent with stable operational performance.

By June 30, 2022, the ROA increased significantly to 6.75%. This rise signifies an improvement in the company's ability to generate earnings from its assets, potentially due to increased sales, better expense management, or operational efficiencies achieved during this period. The substantial increase points toward a period of favorable financial performance and possibly strategic initiatives that enhanced asset productivity.

However, the trend takes a sharp downturn by June 30, 2023, when the ROA declines to -15.51%. This substantial negative value indicates that the company experienced losses that exceeded its asset base, leading to a deterioration in profitability and asset utilization. Such a decline could be attributable to extraordinary expenses, impairments, or adverse market conditions impacting the company’s earnings.

The downward trajectory continues with the ROA at -4.98% for June 30, 2024, reflecting a slight improvement from the previous negative figure, yet still signifying that the company remains unprofitable in relation to its assets. This suggests ongoing challenges in restoring profitability or operational efficiency.

Finally, for June 30, 2025, the ROA drops further to -12.64%, indicating a worsening of the company's ability to generate returns on its assets. The persistent negative figures over this period imply continued financial difficulties, possibly due to structural issues, industry challenges, or impactful impairments that hinder earnings.

Overall, the long-term trend demonstrates initial stability and growth in ROA leading up to 2022, followed by a pronounced decline into negative territory from 2023 onward. This pattern underscores a period of significant financial distress post-2022, emphasizing the need for strategic interventions or operational restructuring to restore profitability and efficient asset utilization.