Grid Dynamics Holdings Inc (GDYN)

Return on assets (ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	4,041	-1,765	-29,214	-7,700	-12,599
Total assets	US$ in thousands	592,192	435,165	411,146	256,719	167,135
ROA		0.68%	-0.41%	-7.11%	-3.00%	-7.54%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $4,041K ÷ $592,192K
= 0.68%

Based on the provided data, Grid Dynamics Holdings Inc's return on assets (ROA) has shown a mixed performance over the years.

In December 31, 2020, the ROA was -7.54%, indicating that the company generated a negative return on its assets, potentially facing challenges in efficiently utilizing its assets to generate profits.

By the end of December 31, 2021, the ROA improved slightly to -3.00%, still negative but showing a slight upward trend, possibly indicating some progress in asset management efficiency.

However, in December 31, 2022, the ROA declined to -7.11%, indicating a decrease in the company's ability to generate profit from its assets compared to the previous year.

The trend reversed in December 31, 2023, where the ROA improved significantly to -0.41%, moving closer to breakeven. This could suggest that the company made efforts to enhance asset productivity and profitability.

Finally, by December 31, 2024, Grid Dynamics Holdings Inc's ROA turned positive at 0.68%, indicating that the company was able to generate a return on its assets. This positive outcome may be a result of improved operational efficiency or strategic initiatives taken by the company.

In conclusion, while Grid Dynamics Holdings Inc faced challenges in generating positive returns on its assets in the earlier years, the company displayed a positive turnaround in recent years, achieving a positive ROA by the end of 2024. The improvement in ROA over the years reflects the company's potential for enhanced asset utilization and profitability.