Twilio Inc (TWLO)

Operating return on assets (Operating ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	-40,435	-386,848	-993,467	-900,590	-471,136
Total assets	US$ in thousands	9,865,470	11,609,700	12,564,300	12,998,600	9,487,430
Operating ROA		-0.41%	-3.33%	-7.91%	-6.93%	-4.97%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $-40,435K ÷ $9,865,470K
= -0.41%

The analysis of Twilio Inc's operating return on assets (ROA) over the specified period reveals a consistent trend of negative profitability, reflecting ongoing operational challenges. At the close of fiscal year 2020, the operating ROA stood at -4.97%, indicating that the company's operating income was insufficient to cover total assets, resulting in a loss relative to its asset base. This negative trajectory deepened in 2021 and 2022, with the operating ROA reaching -6.93% and -7.91%, respectively, illustrating a deterioration in operational efficiency and profitability.

However, there is a notable improvement commencing in 2023, as the operating ROA improves to -3.33%, suggesting a reduction in operational losses relative to assets. This positive shift continues into 2024, with the operating ROA approaching near neutrality at -0.41%, indicating that the company's operational income is nearly offsetting its asset base. Although still negative, this incremental movement enhances the perception of operational stabilization and potential upward trend in efficiency.

Overall, the progression from a more profound negative value toward a less severe negative figure within this period indicates that Twilio Inc has made some strides in improving its operational performance relative to its asset base, albeit remaining unprofitable from an operating return perspective. This evolving trend warrants ongoing monitoring to determine whether the company can sustain these gains and achieve a positive operating ROA in future fiscal periods.