Blackline Inc (BL)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 52,833 | -29,391 | -115,161 | -46,911 | -32,535 |
| Total assets | US$ in thousands | 2,100,760 | 1,943,660 | 1,817,580 | 1,113,500 | 1,014,550 |
| ROA | 2.51% | -1.51% | -6.34% | -4.21% | -3.21% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $52,833K ÷ $2,100,760K
= 2.51%
Blackline Inc's return on assets (ROA) has shown a fluctuating trend over the past five years, with a significant improvement in 2023 compared to previous years. In 2023, the ROA increased to 2.51%, indicating that the company generated 2.51 cents of profit for every dollar of assets it owns. This improvement suggests that Blackline Inc has been more efficient in utilizing its assets to generate profit.
The negative ROA values in the preceding years (2022, 2021, 2020, and 2019) indicate that the company's profitability relative to its assets was poor during those years. This could signal inefficiencies in asset utilization, declining profitability, or possibly asset write-downs impacting the company's earnings.
Overall, the positive ROA in 2023 is a positive sign for Blackline Inc, suggesting improved asset efficiency and profitability. However, it is essential for the company to sustain this positive trend and continue focusing on optimizing its asset utilization to create long-term value for its shareholders.
Peer comparison
Dec 31, 2023