Seagate Technology PLC (STX)
Operating return on assets (Operating ROA)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 1,890,000 | 1,633,000 | 1,345,000 | 981,000 | 449,000 | 164,000 | -294,000 | -578,000 | -342,000 | -8,000 | 736,000 | 1,476,000 | 1,955,000 | 2,102,000 | 2,059,000 | 1,827,000 | 1,492,000 | 1,252,000 | 1,242,000 | 1,278,000 |
| Total assets | US$ in thousands | 8,023,000 | 7,564,000 | 7,959,000 | 7,972,000 | 7,739,000 | 7,096,000 | 7,149,000 | 7,196,000 | 7,556,000 | 7,967,000 | 7,867,000 | 8,611,000 | 8,944,000 | 9,145,000 | 9,375,000 | 8,613,000 | 8,675,000 | 8,604,000 | 8,986,000 | 8,862,000 |
| Operating ROA | 23.56% | 21.59% | 16.90% | 12.31% | 5.80% | 2.31% | -4.11% | -8.03% | -4.53% | -0.10% | 9.36% | 17.14% | 21.86% | 22.99% | 21.96% | 21.21% | 17.20% | 14.55% | 13.82% | 14.42% |
June 30, 2025 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $1,890,000K ÷ $8,023,000K
= 23.56%
The analysis of Seagate Technology PLC’s operating return on assets (ROA) over the specified period reveals notable fluctuations with a general trend of initial improvement followed by a significant deterioration, and subsequent recovery.
From September 30, 2020, the operating ROA stood at 14.42%. This figure experienced slight declines into late 2020, reaching 13.82% by December 31, 2020, indicating a modest reduction in the company's efficiency in utilizing its assets to generate operating income during this period.
In early 2021, the operating ROA resumed an upward trajectory, rising to 14.55% by March 31, 2021, and subsequently demonstrating a more pronounced increase, achieving 17.20% at the end of June 2021. This upward trend intensified through the third quarter of 2021, with ROA reaching 21.21% in September 2021, and further improving to 21.96% by the end of 2021, reflecting enhanced operational efficiency.
The positive momentum continued into 2022, with the operating ROA cresting at 22.99% in March 2022 and maintaining a high level of 21.86% in June 2022. However, during the latter half of 2022, a decline became evident as the ROA decreased to 17.14% by September 2022 and further to a notable low of 9.36% by December 2022. This downward trend signifies a substantial reduction in operating effectiveness and profitability relative to assets.
Moving into early 2023, the ROA continued its decline into negative territory, with a slight negative value of -0.10% in March 2023, and worsening further to -4.53% in June 2023, and -8.03% in September 2023. These figures indicate periods where operating income failed to cover asset costs, pointing to operational challenges or downturns.
By the end of 2023, some recovery was observed as the ROA improved to -4.11% in December 2023. The trend of improvement persisted into 2024, with the ROA turning positive again, reaching 2.31% by March 2024 and increasing further to 5.80% in June 2024, then to 12.31% in September 2024. This upward movement reflects a renewed improvement in operating efficiency.
The positive momentum continued into late 2024 and mid-2025, with the ROA reaching 16.90% in December 2024 and further ascending to 21.59% in March 2025, and ultimately reaching 23.56% by June 2025. This trajectory suggests a significant rebound in the company's operational performance and asset utilization, returning to levels comparable with or exceeding those recorded in the earlier peak periods.
Overall, the operating ROA data depicts a cyclical pattern characterized by initial growth, substantial decline, and subsequent recovery. The recent upward trend aligns with improved operational conditions, and the company's ability to restore profitability and efficiency seems evident. The sharp declines in late 2022 and the first half of 2023 highlight periods of operational distress, while the robust recovery in the subsequent periods indicates strategic or market-driven improvements in operational performance.
Peer comparison
Jun 30, 2025