Box Inc (BOX)

Return on assets (ROA)

		Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
Net income	US$ in thousands	129,032	26,783	-41,459	-43,433	-144,348
Total assets	US$ in thousands	1,241,160	1,207,160	1,392,010	1,351,680	959,991
ROA		10.40%	2.22%	-2.98%	-3.21%	-15.04%

January 31, 2024 calculation

ROA = Net income ÷ Total assets
= $129,032K ÷ $1,241,160K
= 10.40%

Box Inc's return on assets (ROA) has shown a fluctuating trend over the past five years. The ROA increased significantly to 10.40% as of January 31, 2024, from 2.22% in the previous year. This improvement suggests that Box Inc has become more efficient in generating profit from its assets.

In the prior years, the ROA was negative, indicating that Box Inc was not effectively utilizing its assets to generate profits. The negative ROA figures of -2.98% in January 31, 2022, -3.21% in January 31, 2021, and -15.04% in January 31, 2020, highlight periods of financial underperformance and inefficiency in asset management.

The sharp improvement in ROA in the most recent year is a positive sign for Box Inc, showing potential for enhanced profitability and better asset utilization. It would be essential for Box Inc to sustain or further increase its ROA to demonstrate continued operational efficiency and financial health.