Blackline Inc (BL)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	14,348	-56,198	-38,614	-19,891	-27,899
Total assets	US$ in thousands	2,100,760	1,943,660	1,817,580	1,113,500	1,014,550
Operating ROA		0.68%	-2.89%	-2.12%	-1.79%	-2.75%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $14,348K ÷ $2,100,760K
= 0.68%

The operating return on assets (operating ROA) for Blackline Inc has shown improvement over the past five years, fluctuating between negative values and a positive value in the latest year. In 2023, the operating ROA improved significantly to 0.68%, indicating that the company generated a positive return from its operations relative to its assets. This is a positive sign as it shows the company's ability to efficiently utilize its assets to generate operating profits.

In the preceding years, the operating ROA was negative, with the lowest value recorded in 2022 at -2.89%. This suggests that during those years, the company's operating profitability was not sufficient to cover the costs of its assets, leading to overall negative returns. However, the subsequent improvements in the operating ROA demonstrate that management may have undertaken strategic measures to enhance operational efficiency and profitability.

Overall, the positive operating ROA in 2023 indicates a positive trend in the company's operational performance and efficiency. Management should continue focusing on optimizing asset utilization and enhancing profitability to sustain this positive momentum in the coming years.