Wolfspeed Inc (WOLF)

Operating return on assets (Operating ROA)

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Operating income	US$ in thousands	-445,300	-311,800	-247,800	-313,900	-224,100
Total assets	US$ in thousands	7,984,600	6,586,700	3,917,500	3,446,800	3,231,000
Operating ROA		-5.58%	-4.73%	-6.33%	-9.11%	-6.94%

June 30, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $-445,300K ÷ $7,984,600K
= -5.58%

Wolfspeed Inc's operating return on assets (operating ROA) has shown a fluctuating trend over the past five years. The company's operating ROA was -5.58% as of June 30, 2024, which is an improvement compared to the previous year's -4.73%. However, it is still lower than the levels observed in the earlier years.

The operating ROA indicates the company's ability to generate profits from its assets used in operations. A negative operating ROA suggests that the company's operating income is insufficient to cover the assets employed in generating those earnings.

The downward trend in operating ROA from 2020 to 2023, with negative values ranging from -6.94% to -9.11%, may indicate declining profitability relative to the assets employed during those years. The slight improvement in 2024, though still negative, could be a positive sign of a potential turnaround in profitability or more efficient asset utilization.

Overall, Wolfspeed Inc needs to focus on improving its operational efficiency and profitability to enhance its operating ROA and generate higher returns from its assets in the future.