Pegasystems Inc (PEGA)
Operating return on assets (Operating ROA)
| Mar 31, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 271,918 | 124,517 | 137,091 | 137,936 | 83,045 | 81,251 | -24,043 | -90,448 | -134,198 | -93,372 | -175,829 | -163,945 | -77,713 | -94,732 | -68,474 | -64,969 | -117,608 | -143,527 | -139,342 | -124,277 |
| Total assets | US$ in thousands | 1,321,950 | 1,768,270 | 1,579,230 | 1,536,530 | 1,511,730 | 1,510,740 | 1,222,530 | 1,192,440 | 1,281,840 | 1,357,670 | 1,166,460 | 1,258,380 | 1,538,480 | 1,593,530 | 1,555,400 | 1,602,570 | 1,528,500 | 1,604,260 | 1,487,330 | 1,496,280 |
| Operating ROA | 20.57% | 7.04% | 8.68% | 8.98% | 5.49% | 5.38% | -1.97% | -7.59% | -10.47% | -6.88% | -15.07% | -13.03% | -5.05% | -5.94% | -4.40% | -4.05% | -7.69% | -8.95% | -9.37% | -8.31% |
March 31, 2025 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $271,918K ÷ $1,321,950K
= 20.57%
Pegasystems Inc.'s operating return on assets (ROA) data over the period from mid-2020 to early 2025 reveals a significant transformation in operational profitability and asset utilization.
Initially, throughout 2020 and parts of 2021, the company experienced negative operating ROA figures, indicating that its operations were consistently unprofitable on an asset basis. Specifically, as of June 30, 2020, the operating ROA was approximately -8.31%, with a continued decline to -9.37% by September 30, 2020, and marginal improvements to about -8.95% by December 31, 2020. Throughout 2021, the negative figures persisted, with a gradual trend toward less negative values, such as -4.05% by June 30, 2021, and -5.94% by December 31, 2021, suggesting some operational stabilization despite persistent losses.
In the subsequent period, from March 2022 through the first half of 2023, the negative operating ROA widened considerably, reaching as low as -15.07% on September 30, 2022, before a partial recovery to -6.88% by December 2022. Mid-2023 data indicted some volatility without clear consistent trend, with figures such as -10.47% in March 2023 and -7.59% in June 2023.
The notable turning point appears in late 2023, when the operating ROA transitioned into positive territory. December 31, 2023, recorded an operating ROA of 5.38%, followed by further improvement to 5.49% in March 2024. The positive trend persisted into 2024, with the ROA reaching 8.98% by June 30, 2024, and sustaining around 8.68% in September 2024. By December 2024, the figure remained positive at 7.04%. This upward trajectory indicates a substantial enhancement in operating efficiency and profitability on assets.
Looking into 2025, the data shows a continued strong performance, with a significant leap to an operating ROA of 20.57% as of March 31, 2025. This represents a marked turnaround from previous negative and modest positive values, signifying a period of improved operational profitability and effective asset utilization.
Overall, the historical progression of Pegasystems Inc.’s operating ROA illustrates a transition from persistent operational losses in 2020 and 2021 to a phase of recovery and ultimately strong profitability in 2024 and early 2025. The recent positive figures suggest that the company's operational strategies have become more effective, leading to a more efficient utilization of assets to generate operating income.
Peer comparison
Mar 31, 2025