Match Group Inc (MTCH)
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 | 916,896 | 515,005 | 851,679 | 745,715 | 645,454 |
| Total assets | US$ in thousands | 4,507,890 | 4,182,760 | 5,063,290 | 3,046,450 | 8,364,800 |
| Operating ROA | 20.34% | 12.31% | 16.82% | 24.48% | 7.72% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $916,896K ÷ $4,507,890K
= 20.34%
Operating return on assets (operating ROA) of Match Group Inc. has shown fluctuations over the past five years. In 2023, the company's operating ROA stood at 20.34%, indicating that for every dollar of assets employed in its operations, Match Group generated approximately $0.20 in operating profit. This represents a significant improvement compared to the 12.31% in 2022 but is lower than the peak of 25.05% in 2020.
The upward trend in operating ROA from 2019 to 2020 demonstrates the company's ability to efficiently utilize its assets to generate profits. However, the decline in 2022 followed by the subsequent recovery in 2023 indicates some level of variability in performance.
It is crucial for Match Group to maintain its operating ROA at a sustainable level to ensure effective asset management and profitability. Further analysis, considering other financial metrics and industry benchmarks, would provide a more comprehensive understanding of the company's operational efficiency and financial health.
Peer comparison
Dec 31, 2023