TKO Group Holdings, Inc. (TKO)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 682,301 | 678,401 | 635,928 | 480,879 | 481,850 | 503,996 | 579,732 | 561,887 | 544,387 | 504,915 | 399,215 | 319,541 | 256,017 |
| Total assets | US$ in thousands | 12,699,900 | 12,770,400 | 12,719,800 | 12,722,300 | 12,690,700 | 12,736,400 | 3,576,190 | 3,543,210 | 3,580,730 | 1,333,090 | 1,279,050 | 1,245,350 | 1,220,100 |
| Operating ROA | 5.37% | 5.31% | 5.00% | 3.78% | 3.80% | 3.96% | 16.21% | 15.86% | 15.20% | 37.88% | 31.21% | 25.66% | 20.98% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $682,301K ÷ $12,699,900K
= 5.37%
Based on the provided data, TKO Group Holdings, Inc.'s operating return on assets (operating ROA) experienced fluctuations over the time period from December 31, 2021, to December 31, 2024.
The operating ROA started at a relatively high level of 20.98% as of December 31, 2021, and showed a positive trend in the subsequent periods, reaching its peak at 37.88% on September 30, 2022. This indicates that the company was generating a significant amount of operating income relative to its total assets during this period.
However, after the peak in September 2022, the operating ROA started to decline, dropping to 3.80% by December 31, 2023. The trend of decreasing operating ROA continued into the first half of 2024, hitting a low of 3.78% as of March 31, 2024.
Subsequently, there was a slight improvement in the operating ROA, with the ratio increasing to 5.37% by December 31, 2024. Although this indicates some recovery in the company’s operating performance compared to earlier periods, it is still lower than the levels seen in the previous years.
Overall, the analysis of TKO Group Holdings, Inc.'s operating ROA suggests that the company's ability to generate operating income from its assets fluctuated during the period under review, showing both peaks and troughs in performance. The declining trend in the latter part of the period may indicate challenges or inefficiencies in utilizing assets effectively to generate operating income.
Peer comparison
Dec 31, 2024