Blackbaud Inc (BLKB)

Operating return on assets (Operating ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	-270,506	44,705	-19,772	24,906	37,243
Total assets	US$ in thousands	2,495,720	2,912,280	2,992,700	2,965,360	2,044,730
Operating ROA		-10.84%	1.54%	-0.66%	0.84%	1.82%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $-270,506K ÷ $2,495,720K
= -10.84%

Operating return on assets (operating ROA) is an important financial metric that indicates how efficiently a company is utilizing its assets to generate operating profits. Looking at the data provided for Blackbaud Inc from December 31, 2020 to December 31, 2024, we can observe a fluctuating trend in the operating ROA.

- On December 31, 2020, Blackboud Inc had an operating ROA of 1.82%, indicating that the company generated $1.82 in operating profit for every $100 of assets it had.

- By December 31, 2021, the operating ROA decreased to 0.84%, suggesting a decline in the efficiency of asset utilization in generating operating profits.

- The trend continued to worsen as of December 31, 2022, with the operating ROA turning negative at -0.66%. A negative operating ROA implies that the company is not generating sufficient operating profits relative to its asset base, which is a concerning indication.

- However, there was a significant improvement in the operating ROA by December 31, 2023, where it stood at 1.54%. This indicates that Blackbaud Inc was able to enhance its operational efficiency in utilizing assets to generate operating profits.

- Unfortunately, by December 31, 2024, the operating ROA plummeted to -10.84%, signaling a drastic decline in the company's ability to generate operating profits from its assets. This could be a red flag for investors and stakeholders as it suggests severe operational challenges or inefficiencies within the company.

In conclusion, the trend of operating ROA for Blackbaud Inc over the given period indicates volatility and inconsistency in the company's ability to efficiently utilize its assets to generate operating profits. Investors and analysts may need to delve deeper into the reasons behind these fluctuations to assess the company's operational performance and financial health accurately.