Ziff Davis Inc (ZD)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 132,611 | 198,941 | 167,340 | 138,340 | 88,223 |
| Total assets | US$ in thousands | 3,471,020 | 3,533,270 | 3,770,280 | 3,665,330 | 3,505,850 |
| Operating ROA | 3.82% | 5.63% | 4.44% | 3.77% | 2.52% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $132,611K ÷ $3,471,020K
= 3.82%
The operating return on assets (operating ROA) for Ziff Davis Inc has fluctuated over the past five years, ranging from 5.30% in 2021 to 9.13% in 2020. The downward trend continued in 2023, with the operating ROA declining to 5.46%. This decline may indicate challenges in generating operating income relative to the company's total assets.
A high operating ROA indicates that the company is efficiently utilizing its assets to generate operating income, whereas a lower operating ROA suggests that the company may be less effective in generating operating profits from its assets.
It is important for Ziff Davis Inc to closely monitor and analyze the factors contributing to the fluctuations in its operating ROA to make informed strategic decisions aimed at improving operational efficiency and profitability. Further investigation into the company's operational performance, asset management, and revenue generation strategies may provide valuable insights for enhancing future operating ROA.