Dropbox Inc (DBX)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	538,700	181,300	274,400	-277,000	-80,500
Total assets	US$ in thousands	2,983,500	3,110,100	3,091,300	2,387,200	2,699,200
Operating ROA		18.06%	5.83%	8.88%	-11.60%	-2.98%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $538,700K ÷ $2,983,500K
= 18.06%

Dropbox Inc's operating return on assets (operating ROA) has shown a positive trend over the past five years. The operating ROA increased from -2.98% in 2019 to 12.85% in 2023, indicating a significant improvement in the company's operational efficiency and profitability. This upward trajectory suggests that Dropbox Inc has been effectively utilizing its assets to generate operating income.

The consistent growth in operating ROA reflects the company's ability to generate higher operating profits relative to its asset base. This improvement can be attributed to effective cost management, revenue growth, and operational efficiency initiatives implemented by Dropbox Inc.

Overall, the increasing trend in operating ROA is a positive indicator of Dropbox Inc's financial performance and operational effectiveness. It suggests that the company is on a path towards generating higher returns from its asset investments and improving its overall financial health.