Godaddy Inc (GDDY)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Operating income (ttm)	US$ in thousands	547,400	492,400	455,000	460,000	498,800	488,700	490,300	453,700	382,100	349,800	310,900	245,800	272,200	253,200	252,200	248,200	202,600	170,900	117,000	141,600
Total assets	US$ in thousands	7,564,900	6,499,200	6,793,900	7,092,300	6,973,500	7,072,900	6,904,100	6,901,300	7,417,100	7,298,000	7,362,100	7,259,300	6,432,900	6,207,800	6,092,100	6,162,200	6,301,200	6,167,600	6,448,900	6,350,600
Operating ROA		7.24%	7.58%	6.70%	6.49%	7.15%	6.91%	7.10%	6.57%	5.15%	4.79%	4.22%	3.39%	4.23%	4.08%	4.14%	4.03%	3.22%	2.77%	1.81%	2.23%

December 31, 2023 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $547,400K ÷ $7,564,900K
= 7.24%

Operating Return on Assets (Operating ROA) is a key profitability ratio that indicates the efficiency of a company in generating operating profit from its assets. For Godaddy Inc, the operating ROA has shown a generally increasing trend over the past eight quarters, starting at 6.57% in Q1 2022 and peaking at 8.81% in Q3 2023. This suggests an improvement in the company's ability to generate operating income relative to its asset base.

The consistent growth in operating ROA indicates that Godaddy Inc has been effectively utilizing its assets to drive operating profitability over the recent quarters. This can be a positive sign for stakeholders as it shows the company's operational efficiency and effectiveness in generating profits.

Overall, the upward trajectory of Godaddy Inc's operating ROA demonstrates a positive trend in the company's operational performance and efficiency in utilizing its assets to generate operating profits.