Sonos Inc (SONO)
Operating return on assets (Operating ROA)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -48,046 | -20,547 | 89,532 | 154,964 | -27,233 |
| Total assets | US$ in thousands | 916,312 | 1,002,240 | 1,188,390 | 1,138,800 | 816,051 |
| Operating ROA | -5.24% | -2.05% | 7.53% | 13.61% | -3.34% |
September 30, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $-48,046K ÷ $916,312K
= -5.24%
The operating return on assets (operating ROA) for Sonos Inc has exhibited fluctuations over the past five years. The trend indicates a decline in performance, with the operating ROA decreasing from 13.61% in 2021 to -5.24% in 2024. This negative trend raises concerns about the company's ability to generate profits from its operational activities relative to its asset base.
The negative operating ROA in 2024 suggests that Sonos Inc is facing challenges in efficiently utilizing its assets to generate operating income. This could be indicative of inefficiencies in the company's operations, cost management issues, or a decline in revenue generation. It is crucial for Sonos Inc management to investigate the underlying causes of this decline and implement strategic measures to improve operational performance and profitability.
The significant variance in the operating ROA over the years highlights the volatility in Sonos Inc's operational efficiency and profitability. Investors and stakeholders should closely monitor the company's financial performance indicators and management's efforts to address the challenges impacting the operating ROA to assess the company's future financial health and sustainability.
Peer comparison
Sep 30, 2024