Ziff Davis Inc (ZD)
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 | 113,648 | 132,611 | 198,941 | 167,340 | 138,340 |
| Total assets | US$ in thousands | 3,704,330 | 3,471,020 | 3,533,270 | 3,770,280 | 3,665,330 |
| Operating ROA | 3.07% | 3.82% | 5.63% | 4.44% | 3.77% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $113,648K ÷ $3,704,330K
= 3.07%
Ziff Davis Inc's operating return on assets (operating ROA) has exhibited fluctuations over the past five years. The trend shows a gradual increase from 3.77% as of December 31, 2020, to a peak of 5.63% as of December 31, 2022. However, there was a slight decline to 3.82% by the end of 2023, followed by a further decrease to 3.07% by December 31, 2024.
The increase in operating ROA from 2020 to 2022 indicates improved operating efficiency and profitability relative to the assets employed. However, the subsequent decrease in 2023 and 2024 suggests a potential dip in operational performance or asset utilization efficiency.
It is important for Ziff Davis Inc to analyze the drivers behind these fluctuations in operating ROA to understand the factors impacting profitability and operational efficiency. Further investigation into the company's operations, investments, and strategic decisions may be necessary to sustain or improve its operating ROA in the future.