Thryv Holdings Inc (THRY)
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 | -200,017 | 261,604 | 190,013 | 152,013 | 152,892 |
| Total assets | US$ in thousands | 783,170 | 1,177,880 | 1,300,500 | 1,214,980 | 1,388,290 |
| Operating ROA | -25.54% | 22.21% | 14.61% | 12.51% | 11.01% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $-200,017K ÷ $783,170K
= -25.54%
Thryv Holdings Inc's operating return on assets (operating ROA) has exhibited fluctuations over the past four years. The operating ROA decreased from 14.56% in 2020 to 14.89% in 2021, representing a slight improvement. However, there was a more significant decline in 2022, with the operating ROA dropping to 17.11%. This decrease was followed by another notable decline in 2023, with the operating ROA further decreasing to 8.79%.
The decreasing trend in operating ROA over the last two years may indicate inefficiencies in the company's operations or a decline in profitability relative to its asset base. The decline in operating ROA could be a cause for concern as it suggests that Thryv Holdings Inc may be generating less profit from its operating activities in relation to its total assets. Further analysis of the company's operational efficiency, cost structure, and asset utilization may be warranted to address the declining trend in operating ROA and identify potential areas for improvement.