Vicor Corporation (VICR)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 51,358 | 27,201 | 55,602 | 17,368 | 13,821 |
| Total assets | US$ in thousands | 594,887 | 536,901 | 477,205 | 396,239 | 240,727 |
| Operating ROA | 8.63% | 5.07% | 11.65% | 4.38% | 5.74% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $51,358K ÷ $594,887K
= 8.63%
Operating return on assets (operating ROA) is a key financial ratio that measures a company's operating income generated per dollar of assets.
The trend in Vicor Corp.'s operating ROA over the past five years shows fluctuations. In 2023, the operating ROA increased to 8.63% from the previous year's 6.28%. This improvement indicates that Vicor Corp. has been more effective in utilizing its assets to generate operating income.
In 2021, the operating ROA was relatively high at 11.65%, demonstrating a strong performance in the efficient use of assets to generate operating income. This marked a notable increase from the prior year's 4.38%, reflecting a significant improvement in operational efficiency.
In contrast, the operating ROA in 2020 was lower at 4.38%, indicating a decrease in the company's ability to generate operating income from its assets. However, this was followed by a recovery in 2019, where the operating ROA improved to 5.74%.
Overall, the varying performance of Vicor Corp.'s operating ROA over the years suggests fluctuations in the company's operational efficiency and effectiveness in utilizing its assets to generate income. Investors and stakeholders should continue to monitor this ratio to assess the company's financial health and operational performance.
Peer comparison
Dec 31, 2023