Shutterstock (SSTK)

Return on assets (ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	35,932	110,269	76,103	91,883	71,766
Total assets	US$ in thousands	1,309,160	1,036,020	881,184	851,710	729,644
ROA		2.74%	10.64%	8.64%	10.79%	9.84%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $35,932K ÷ $1,309,160K
= 2.74%

Shutterstock's Return on Assets (ROA) has shown varying trends over the past five years. In December 31, 2020, the ROA was 9.84%, indicating that the company generated $0.0984 in profit for every dollar of assets. The following year, in December 31, 2021, the ROA improved to 10.79%, showcasing an enhanced efficiency in asset utilization and profitability.

However, in December 31, 2022, the ROA declined to 8.64%, suggesting a decrease in the company's ability to generate earnings from its assets. This trend reversed in December 31, 2023, with the ROA rebounding to 10.64%, indicating an improvement in asset utilization and profitability.

The most recent data point, December 31, 2024, shows a significant drop in ROA to 2.74%, signaling a substantial decrease in profitability relative to the company's asset base. This decline may warrant further exploration into the factors impacting the company's performance in using its assets to generate returns.

Overall, Shutterstock's ROA has displayed fluctuations over the analyzed period, with a mix of improvements and setbacks in efficiently utilizing its assets to generate profits. Understanding these trends can provide insights into the company's operational efficiency and financial performance.