Box Inc (BOX)

Operating return on assets (Operating ROA)

		Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020	Jul 31, 2020	Apr 30, 2020	Jan 31, 2020	Oct 31, 2019	Jul 31, 2019	Apr 30, 2019
Operating income (ttm)	US$ in thousands	50,753	49,299	51,286	44,551	36,840	16,964	-7,489	-16,739	-27,626	-30,738	-22,265	-23,665	-37,642	-62,945	-99,564	-128,331	-139,472	-132,585	-132,816	-133,758
Total assets	US$ in thousands	1,241,160	1,033,820	1,068,140	1,108,670	1,207,160	1,056,450	1,066,310	1,171,590	1,392,010	1,405,080	1,525,610	1,310,130	1,351,680	941,561	960,511	948,913	959,991	843,918	827,316	825,721
Operating ROA		4.09%	4.77%	4.80%	4.02%	3.05%	1.61%	-0.70%	-1.43%	-1.98%	-2.19%	-1.46%	-1.81%	-2.78%	-6.69%	-10.37%	-13.52%	-14.53%	-15.71%	-16.05%	-16.20%

January 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $50,753K ÷ $1,241,160K
= 4.09%

Box Inc's operating return on assets (ROA) has shown fluctuating trends over the past few periods. From Jan 31, 2024 to Apr 30, 2022, the operating ROA ranged between 4.09% and -1.98%, indicating variability in the company's ability to generate operating income relative to its total assets. The operating ROA peaked at 4.80% in Jul 31, 2023 and hit a low of -1.98% in Jan 31, 2022.

The company faced challenges in generating operating returns in the period from Jan 31, 2022 to Jul 31, 2020, with negative operating ROA figures ranging from -1.46% to -16.20%. This suggests that during these periods, Box Inc struggled to efficiently utilize its assets to generate operating profits.

However, it is notable that there has been a positive trend in the operating ROA from Jul 31, 2022 onwards, with the ratio gradually improving from -0.70% to 4.09% in Jan 31, 2024. This improvement may indicate better operational efficiency and increased profitability as the company managed to enhance its return on assets.

Overall, Box Inc's operating ROA has shown a mix of positive and negative performance, with recent periods reflecting a positive trajectory in the company's ability to generate operating income relative to its assets. Continued monitoring of this ratio will be essential to assess the company's operational performance and efficiency in generating returns for its shareholders.