Godaddy Inc (GDDY)
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 | 893,500 | 547,400 | 498,800 | 382,100 | -358,900 |
| Total assets | US$ in thousands | 8,235,400 | 7,564,900 | 6,973,500 | 7,417,100 | 6,432,900 |
| Operating ROA | 10.85% | 7.24% | 7.15% | 5.15% | -5.58% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $893,500K ÷ $8,235,400K
= 10.85%
Operating return on assets (Operating ROA) is a key financial ratio that indicates how efficiently a company is generating profit from its assets used in operations.
Based on the provided data for Godaddy Inc, the Operating ROA has exhibited a fluctuating trend over the years. As of December 31, 2020, the company reported a negative Operating ROA of -5.58%, indicating that the company's operating profits were insufficient to cover the assets employed in operations.
However, there has been a positive turnaround in the following years. By December 31, 2021, the Operating ROA improved to 5.15%, signaling a better utilization of assets to generate operating profits. Subsequently, the ratio continued to increase to 7.15% by December 31, 2022, and further to 7.24% by December 31, 2023.
The most significant improvement was observed by December 31, 2024, where Godaddy Inc achieved an Operating ROA of 10.85%. This substantial increase indicates a notable enhancement in the company's operational efficiency and profitability, reflecting a more effective use of assets to generate operating income.
Overall, the trend in Operating ROA for Godaddy Inc shows a positive trajectory, suggesting improvements in operational performance and asset utilization over the years. This indicates a potentially positive outlook for the company's profitability and efficiency in the future.
Peer comparison
Dec 31, 2024