Wolfspeed Inc (WOLF)

Return on assets (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
Net income (ttm)	US$ in thousands	-864,200	-802,600	-753,200	-699,400	-329,900	-184,200	-151,200	-157,000	-200,900	-380,900	-423,300	-409,600	-523,900	-415,800	-367,000	-338,300	-191,700	-285,900	-453,600	-401,800
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
ROA		-10.82%	-10.43%	-10.33%	-9.56%	-5.01%	-3.38%	-2.83%	-4.07%	-5.13%	-10.15%	-13.16%	-12.61%	-15.20%	-11.85%	-11.74%	-10.83%	-5.93%	-10.44%	-16.30%	-14.37%

June 30, 2024 calculation

ROA = Net income (ttm) ÷ Total assets
= $-864,200K ÷ $7,984,600K
= -10.82%

Wolfspeed Inc's return on assets (ROA) has been fluctuating over the past few quarters, with a negative trend. The ROA values were notably low, ranging from -2.83% to -15.20% in the recent quarters. This indicates that the company is not effectively utilizing its assets to generate profit.

The negative ROA values suggest that Wolfspeed Inc may be facing challenges in generating earnings relative to its assets base. A consistently negative ROA can be concerning as it signifies inefficiency in generating profits from investments in assets.

The company should focus on improving its operational efficiency, cost management, and revenue generation strategies to enhance its ROA and overall profitability. Investors and stakeholders may closely monitor these trends to assess the company's financial health and performance in the future.