Grid Dynamics Holdings Inc (GDYN)

Return on assets (ROA)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Net income (ttm)	US$ in thousands	4,041	2,419	-1,187	2,257	-1,765	-11,369	-18,704	-34,517	-29,214	-26,118	-20,008	-8,305	-7,700	-8,814	-9,382	-10,065	-12,599	-5,772	-202	5,499
Total assets	US$ in thousands	592,192	477,252	443,622	435,261	435,165	435,750	431,238	419,587	411,146	390,145	278,173	275,802	256,719	304,688	173,133	160,297	167,135	157,801	153,544	154,202
ROA		0.68%	0.51%	-0.27%	0.52%	-0.41%	-2.61%	-4.34%	-8.23%	-7.11%	-6.69%	-7.19%	-3.01%	-3.00%	-2.89%	-5.42%	-6.28%	-7.54%	-3.66%	-0.13%	3.57%

December 31, 2024 calculation

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

Grid Dynamics Holdings Inc's return on assets (ROA) has shown fluctuations over the provided periods. The ROA was at 3.57% as of March 31, 2020, indicating positive profitability relative to its assets. However, there was a significant decline in ROA in subsequent periods, with negative values ranging from -0.13% to -8.23%. This suggests that the company's ability to generate profits from its assets declined during these periods.

The downward trend in ROA may be a cause for concern as it indicates a decrease in the company's efficiency in generating earnings from its assets. It could be attributed to various factors such as declining revenue, increasing expenses, or inefficient asset utilization.

The slight improvement in ROA towards the end of the data period, reaching 0.68% as of December 31, 2024, indicates a potential turnaround in profitability efficiency. However, it is essential for the company to sustain and build upon this improvement to enhance its overall financial performance and create value for its stakeholders.

Overall, the fluctuating ROA trend suggests that Grid Dynamics Holdings Inc may need to focus on optimizing its asset management and operational efficiency to enhance profitability in the long run.