Sonos Inc (SONO)
Operating return on assets (Operating ROA)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -20,547 | 89,532 | 154,964 | -27,233 | 5,699 |
| Total assets | US$ in thousands | 1,002,240 | 1,188,390 | 1,138,800 | 816,051 | 761,605 |
| Operating ROA | -2.05% | 7.53% | 13.61% | -3.34% | 0.75% |
September 30, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $-20,547K ÷ $1,002,240K
= -2.05%
Sonos Inc's operating return on assets (operating ROA) is a key financial ratio that measures the company's ability to generate profits from its assets used in operations. A higher operating ROA indicates efficient utilization of assets to generate operating profits.
Looking at the trend over the past five years, Sonos Inc's operating ROA has exhibited significant fluctuations. In 2023, the operating ROA stands at -2.05%, reflecting a negative return on assets utilized in operations. This decline from the previous year's figure of 7.53% is concerning and indicates a decrease in the company's ability to generate operating profits relative to its asset base.
On the other hand, in 2022, Sonos Inc achieved a relatively strong operating ROA of 7.53%, reflecting efficient utilization of assets to generate operating profits. This positive trend continued from the previous year, where the operating ROA was 13.61%, indicating a strong performance in utilizing its assets to generate operating income.
However, the trend appears to have significantly reversed in 2020 when the operating ROA plummeted to -3.34%, reflecting a decrease in the company's ability to generate operating profits from its assets. This was a notable decline from the previous year's figure of 0.75%.
The fluctuating trend in Sonos Inc's operating ROA over the past five years suggests that the company has experienced challenges in consistently generating operating profits from its asset base. It is important for the company to analyze the drivers behind these fluctuations and implement strategies to improve the efficiency of asset utilization in generating operating profits.
In conclusion, Sonos Inc's operating ROA has displayed variability over the past five years, indicating fluctuations in the company's ability to generate operating profits from its asset base. Analyzing the factors influencing these fluctuations and implementing measures to improve asset utilization efficiency will be crucial for the company's financial performance.
Peer comparison
Sep 30, 2023