Varex Imaging Corp (VREX)
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 | 77,100 | 88,200 | 74,100 | -33,700 | 45,700 |
| Total assets | US$ in thousands | 1,249,600 | 1,184,400 | 1,147,500 | 1,139,500 | 1,038,900 |
| Operating ROA | 6.17% | 7.45% | 6.46% | -2.96% | 4.40% |
September 30, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $77,100K ÷ $1,249,600K
= 6.17%
Varex Imaging Corp's operating return on assets (operating ROA) has fluctuated over the past five years. In 2023, the operating ROA stands at 6.17%, showing a slight decline from the previous year. This ratio indicates that for every dollar of assets the company holds, it generates approximately 6.17 cents in operating income.
Comparing this to previous years, Varex Imaging Corp exhibited a higher operating ROA in 2022 at 7.45%, which suggests a more efficient utilization of its assets to generate operating income. The company also showed a positive trend in 2021 with an operating ROA of 6.46%, indicating a solid performance in asset management.
However, in 2020, Varex Imaging Corp experienced a negative operating ROA of -2.96%, signifying that its operating income was not sufficient to cover the assets employed. This could be a concerning indicator of inefficiency or operational challenges during that period.
The company recovered in 2019 with a 4.40% operating ROA, demonstrating an improvement in asset productivity and profitability.
In conclusion, Varex Imaging Corp's operating ROA has shown variability over the years, with fluctuations impacting its operational efficiency and asset utilization. Continued monitoring and analysis of this ratio will be essential for assessing the company's financial performance and sustainability.
Peer comparison
Sep 30, 2023