TKO Group Holdings, Inc. (TKO)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 9,408 | -35,227 | 387,275 | 272,340 | 177,165 |
| Total assets | US$ in thousands | 12,699,900 | 12,690,700 | 3,580,730 | 4,296,180 | 1,318,890 |
| ROA | 0.07% | -0.28% | 10.82% | 6.34% | 13.43% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $9,408K ÷ $12,699,900K
= 0.07%
Based on the provided data, TKO Group Holdings, Inc.'s return on assets (ROA) has fluctuated over the past five years. In December 31, 2020, the ROA was at its highest level, standing at 13.43%, indicating that the company generated $0.1343 in net income for every dollar of assets it possessed during that year.
However, the ROA declined significantly to 6.34% by December 31, 2021, before rebounding to 10.82% by December 31, 2022. These fluctuations suggest changes in the company's profitability and efficiency in asset utilization.
In December 31, 2023, the ROA turned negative at -0.28%, implying that the company experienced losses relative to its asset base. It is critical for the company to investigate the reasons behind this negative ROA to ensure sustainable operations.
By December 31, 2024, TKO Group Holdings, Inc.'s ROA improved slightly to 0.07%, yet it remains at a low level compared to its historical performance. The company should focus on optimizing its asset management and operational efficiency to enhance its return on assets in the future.
Peer comparison
Dec 31, 2024