Blackline Inc (BL)

Return on assets (ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	161,174	52,833	-33,891	-100,994	-39,402
Total assets	US$ in thousands	1,825,040	2,100,760	1,943,660	1,817,580	1,113,500
ROA		8.83%	2.51%	-1.74%	-5.56%	-3.54%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $161,174K ÷ $1,825,040K
= 8.83%

The return on assets (ROA) for Blackline Inc has varied over the past five years.

As of December 31, 2020, the ROA was -3.54%, indicating that the company generated a negative return on its assets that year. This negative ROA suggests that Blackline Inc may not have efficiently utilized its assets to generate profits.

In the following year, the ROA further decreased to -5.56% as of December 31, 2021. This significant decline indicates a worsening profitability situation, with a higher loss relative to its asset base.

However, there was a turnaround in the financial performance of Blackline Inc by December 31, 2023, when the ROA improved to a positive 2.51%. This positive ROA indicates that the company effectively utilized its assets to generate profits, showcasing a more efficient management of its resources.

By December 31, 2024, Blackline Inc's ROA had further increased to 8.83%, reflecting a substantial improvement in profitability and asset utilization. This strong performance suggests that the company effectively leveraged its assets to generate higher returns for its shareholders.

Overall, the trend in Blackline Inc's ROA indicates fluctuations in profitability over the years, with a notable recovery and improvement in recent periods. It is essential for the company to sustain this positive momentum in efficiently utilizing its assets to drive profitability and create long-term value.