Twilio Inc (TWLO)

Return on assets (ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	-109,403	-1,015,440	-1,256,140	-949,900	-490,979
Total assets	US$ in thousands	9,865,470	11,609,700	12,564,300	12,998,600	9,487,430
ROA		-1.11%	-8.75%	-10.00%	-7.31%	-5.18%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $-109,403K ÷ $9,865,470K
= -1.11%

The return on assets (ROA) for Twilio Inc. has demonstrated a persistent negative trend over the recent years, reflecting challenges in generating profit relative to its total assets. Specifically, at the end of December 31, 2020, the company posted an ROA of approximately -5.18%, indicating that it was experiencing a loss relative to its asset base. The situation worsened by December 31, 2021, with a decline to around -7.31%, suggesting increased inefficiency or higher expenses that further eroded profitability.

By December 31, 2022, the negative ROA deepened to approximately -10.00%, signaling a significant deterioration in the company's ability to leverage its assets effectively to produce earnings. While the ROA improved somewhat by December 31, 2023, to about -8.75%, it remained well below break-even, indicating ongoing operational or financial challenges.

The most notable change is observed in the data for December 31, 2024, where the ROA improved markedly to approximately -1.11%. This suggests a substantial reduction in losses relative to total assets, potentially reflecting operational improvements, cost management, restructuring efforts, or other strategic initiatives aimed at enhancing profitability. Despite the significant improvement, the metric remains negative, indicating that Twilio Inc. is yet to achieve consistent profitability from its asset base.

Overall, the trajectory of Twilio Inc.'s ROA illustrates a pattern of persistent losses in recent years, with a notable recovery in 2024. The gradual improvement points towards some success in addressing previous inefficiencies, although the company continued to operate without generating positive returns on its assets as of the most recent period analyzed.