Veracyte Inc (VCYT)

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 13,828 23,802 16,671 11,072 -32,684 -45,441 -51,712 -55,708 -33,649 -36,331 -40,189 -47,102 -54,103 -50,844 -81,903 -77,642 -65,027 -68,604 -35,389 -35,514
Total assets US$ in thousands 1,344,100 1,315,410 1,300,040 1,275,020 1,234,330 1,200,070 1,137,820 1,124,940 1,161,110 1,157,120 1,156,420 1,125,960 1,144,200 1,173,590 1,187,820 1,186,360 1,027,440 1,025,140 457,163 454,151
Operating ROA 1.03% 1.81% 1.28% 0.87% -2.65% -3.79% -4.54% -4.95% -2.90% -3.14% -3.48% -4.18% -4.73% -4.33% -6.90% -6.54% -6.33% -6.69% -7.74% -7.82%

June 30, 2025 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $13,828K ÷ $1,344,100K
= 1.03%

The analysis of Veracyte Inc.'s operating return on assets (ROA) over the specified period demonstrates a notable trend of gradual improvement from highly negative values towards positive territory. Starting from a negative operating ROA of -7.82% as of September 30, 2020, the metric exhibited a consistent upward trajectory, reflecting enhanced operational efficiency and profitability relative to assets.

Throughout the subsequent quarters, the negative ROA narrowed incrementally, reaching -2.65% by June 30, 2024. A significant turnaround appears evident during the third quarter of 2024 when the operating ROA transitioned into positive territory, recorded at 0.87%. This positive shift indicates that the company's core operations began generating returns exceeding the costs associated with its assets.

The positive trend continued into late 2024 and early 2025, with the ROA reaching a peak of 1.81% on March 31, 2025, before a slight decrease to 1.03% by June 30, 2025. This overall progression from negative to positive operating ROA suggests substantial operational improvements, strategic execution, or both, culminating in profitable utilization of assets.

In summary, Veracyte Inc.'s operating ROA evolution reflects an ongoing recovery and operational enhancement over the observed period, culminating in a transition from significant operational losses to modest but meaningful positive returns on assets by mid-2025.