Box Inc (BOX)

Operating return on assets (Operating ROA)

		Jan 31, 2025	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021
Operating income	US$ in thousands	79,634	50,753	36,840	-27,626	-35,216
Total assets	US$ in thousands	1,667,520	1,241,160	1,207,160	1,392,010	1,351,680
Operating ROA		4.78%	4.09%	3.05%	-1.98%	-2.61%

January 31, 2025 calculation

Operating ROA = Operating income ÷ Total assets
= $79,634K ÷ $1,667,520K
= 4.78%

Box Inc's operating return on assets (Operating ROA) is a crucial efficiency and profitability measure that reflects the company's ability to generate profits from its assets utilized in operations. Based on the provided data, we observe a fluctuating trend in Box Inc's Operating ROA over the years:

1. As of January 31, 2021, the Operating ROA was -2.61%, indicating that for every dollar of assets invested, the company incurred a loss from its core operations.

2. By January 31, 2022, the Operating ROA showed slight improvement at -1.98%, albeit still negative, suggesting that the company's operational efficiency was not optimal during that period.

3. In the following years, there was a notable positive shift in Box Inc's performance. By January 31, 2023, the Operating ROA turned positive at 3.05%, indicating that the company started generating profits from its operational assets.

4. This positive momentum continued to strengthen over the subsequent periods. As of January 31, 2024, the Operating ROA further improved to 4.09%, reflecting enhanced efficiency in utilizing assets to drive operating profits.

5. The most recent data point, as of January 31, 2025, shows a continued rise in Operating ROA to 4.78%. This indicates that Box Inc has been effectively optimizing its assets to generate even higher returns from its core operations.

In conclusion, the trend in Box Inc's Operating ROA demonstrates a significant turnaround from negative figures to positive values, reflecting improved operational efficiency and profitability over the years. This suggests that the company has been successfully leveraging its assets to drive operational performance and enhance shareholder value.