Wolfspeed Inc (WOLF)

Operating return on assets (Operating ROA)

		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	Dec 31, 2019	Sep 30, 2019
Operating income (ttm)	US$ in thousands	-445,300	-411,100	-390,400	-365,300	-333,900	-281,100	-257,700	-245,600	-247,800	-321,600	-320,700	-317,400	-313,900	-251,700	-238,300	-244,100	-220,800	-253,500	-216,600	-143,200
Total assets	US$ in thousands	7,984,600	7,696,200	7,290,200	7,312,800	6,586,700	5,454,700	5,342,900	3,858,500	3,917,500	3,752,700	3,216,900	3,248,800	3,446,800	3,507,700	3,124,900	3,123,300	3,231,000	2,737,900	2,782,800	2,796,600
Operating ROA		-5.58%	-5.34%	-5.36%	-5.00%	-5.07%	-5.15%	-4.82%	-6.37%	-6.33%	-8.57%	-9.97%	-9.77%	-9.11%	-7.18%	-7.63%	-7.82%	-6.83%	-9.26%	-7.78%	-5.12%

June 30, 2024 calculation

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

The operating return on assets (ROA) of Wolfspeed Inc has shown a generally declining trend over the past few quarters, indicating a decrease in the company's ability to generate profits from its assets through operations. The negative operating ROA figures, ranging from -5.58% to -9.97% in the most recent quarters, suggest that the company's operating income is insufficient to cover the costs associated with its assets.

The downward trend in operating ROA could be a cause for concern as it may imply inefficiencies in the company's operations or challenges in effectively utilizing its assets to generate profits. Further analysis is required to understand the specific factors contributing to the decreasing trend in operating ROA and to formulate strategies to improve operational efficiency and profitability.