Synnex Corporation (SNX)

Operating return on assets (Operating ROA)

		Nov 30, 2023	Nov 30, 2022	Nov 30, 2021	Nov 30, 2020	Nov 30, 2019
Operating income	US$ in thousands	1,078,030	1,050,870	623,218	521,341	519,429
Total assets	US$ in thousands	29,412,800	29,734,000	27,666,400	13,468,600	11,698,000
Operating ROA		3.67%	3.53%	2.25%	3.87%	4.44%

November 30, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $1,078,030K ÷ $29,412,800K
= 3.67%

To analyze TD Synnex Corp's operating return on assets (operating ROA) over the past five years, we can observe a fluctuating trend. The operating ROA has varied from a high of 6.96% in 2019 to a low of 2.66% in 2021, before increasing to 4.37% in 2023.

The fluctuation in the operating ROA indicates changes in the company's ability to generate operating income from its assets. A higher operating ROA suggests that the company is effectively utilizing its assets to generate operating profits, while a lower operating ROA may indicate inefficiencies in asset management or reduced profitability.

The decrease in operating ROA from 2019 to 2021 may raise concerns about the company's operational efficiency and profitability during that period. However, the subsequent increase in 2023 is a positive sign, indicating potential improvements in asset utilization and operating profitability.

Further analysis of the company's operating expenses, revenue generation, and asset management strategies may provide insights into the factors driving the fluctuation in operating ROA over the years.