Pegasystems Inc (PEGA)
Return on assets (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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 196,735 | 99,189 | 122,764 | 129,875 | 76,458 | 67,808 | -40,244 | -126,485 | -365,977 | -345,582 | -417,441 | -380,389 | -56,802 | -63,040 | -21,788 | 15,413 | -42,618 | -61,373 | -64,461 | -75,532 |
| 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 |
| ROA | 14.88% | 5.61% | 7.77% | 8.45% | 5.06% | 4.49% | -3.29% | -10.61% | -28.55% | -25.45% | -35.79% | -30.23% | -3.69% | -3.96% | -1.40% | 0.96% | -2.79% | -3.83% | -4.33% | -5.05% |
March 31, 2025 calculation
ROA = Net income (ttm) ÷ Total assets
= $196,735K ÷ $1,321,950K
= 14.88%
The analysis of Pegasystems Inc.'s return on assets (ROA) over the specified period reveals a notable trajectory characterized by significant fluctuations. From June 30, 2020, through June 30, 2022, the company experienced predominantly negative ROA values, indicating periods where the company’s net income was insufficient to generate positive returns relative to its assets. Specifically, the ROA declined from -5.05% at the end of June 2020 to a pronounced low of -35.79% in September 2022, with interim periods reflecting persistent losses. The extensive negative values during this period suggest operational challenges or a phase of restructuring, which impacted profitability.
In late 2022 and early 2023, the ROA remained negative but showed signs of improvement, although still far from profitability, with values such as -25.45% in December 2022 and -28.55% in March 2023. This period indicates ongoing difficulties in generating returns on assets. However, starting in December 2023, there is a marked positive turn, with ROA reaching 4.49%, followed by further improvement to 5.06% by March 2024 and continuing positive growth through June and September 2024, at 8.45% and 7.77% respectively. The upward trend persists into December 2024 and March 2025, with ROA reaching 5.61% and 14.88%, respectively.
This transition from negative to positive ROA signifies a substantial turnaround in the company's operational efficiency and profitability. The recent positive figures suggest that Pegasystems Inc. has begun to effectively leverage its assets to generate earnings, reflecting favorable developments in its business activities, cost management, or revenue growth strategies. Overall, the company's ROA movement highlights a period of significant challenge turning into ongoing improvement and profitability in the most recent periods analyzed.
Peer comparison
Mar 31, 2025