Vicor Corporation (VICR)
Operating return on assets (Operating ROA)
| 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 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | -1,310 | -3,166 | 7,152 | 24,801 | 51,358 | 52,128 | 39,428 | 32,863 | 27,201 | 27,983 | 36,951 | 45,662 | 55,602 | 58,306 | 52,437 | 34,461 | 17,368 | 6,658 | 6,607 | 6,955 |
| Total assets | US$ in thousands | 641,118 | 632,762 | 613,234 | 605,117 | 594,887 | 584,135 | 560,661 | 544,255 | 536,901 | 527,102 | 513,356 | 489,349 | 477,205 | 458,830 | 446,376 | 417,621 | 396,239 | 380,119 | 372,734 | 246,725 |
| Operating ROA | -0.20% | -0.50% | 1.17% | 4.10% | 8.63% | 8.92% | 7.03% | 6.04% | 5.07% | 5.31% | 7.20% | 9.33% | 11.65% | 12.71% | 11.75% | 8.25% | 4.38% | 1.75% | 1.77% | 2.82% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $-1,310K ÷ $641,118K
= -0.20%
Operating return on assets (Operating ROA) is a key financial ratio that measures a company's ability to generate profits from its operational activities relative to the total assets employed.
Analyzing the data from Vicor Corporation, we observe fluctuations in the Operating ROA over the examined period.
From March 31, 2020, to December 31, 2021, the Operating ROA shows a positive trend, steadily increasing from 2.82% to 11.65%. This indicates that Vicor Corporation was effectively utilizing its assets to generate operating income during this time frame.
The peak Operating ROA of 12.71% was achieved on September 30, 2021, suggesting a high level of efficiency in converting assets into operating profits. However, there was a slight decrease in the subsequent quarter, followed by fluctuations around the 9-11% range until June 30, 2023.
From September 30, 2023, to December 31, 2024, Vicor Corporation experienced a decline in its Operating ROA, reaching negative figures by the end of the period. The negative values on September 30, 2024, and December 31, 2024, indicate that the company's operations were not generating sufficient profits to cover the assets employed.
This downward trend in the later periods raises concerns about Vicor Corporation's operational efficiency and profitability, as the company may be facing challenges in effectively utilizing its assets to generate income. It would be essential for the company's management to analyze the root causes of this decline and implement strategies to improve operational performance and return on assets.
Peer comparison
Dec 31, 2024