Stock Analysis on Net

AppLovin Corp. (NASDAQ:APP)

Return on Assets (ROA) 
since 2021

Microsoft Excel

Calculation

AppLovin Corp., ROA, long-term trends, calculation

Microsoft Excel

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).

1 US$ in thousands


The analysis of the annual financial data reveals significant fluctuations and a notable improvement in the company's profitability over the observed periods.

Net Income (Loss) Attributable to AppLovin
The net income initially recorded a positive figure of $35.4 million in 2021, followed by a substantial loss of approximately $192.7 million in 2022. However, the company experienced a strong recovery in 2023, with net income rising to $356.7 million and further accelerating dramatically to $1.58 billion in 2024. This indicates a volatile but ultimately highly positive turn in profitability.
Total Assets
Total assets showed a decreasing trend from $6.16 billion in 2021 to $5.36 billion in 2023, reflecting a reduction in asset base over these years. In 2024, there was a moderate increase to nearly $5.87 billion, suggesting some expansion or acquisition of assets after prior contractions.
Return on Assets (ROA)
The ROA corresponded clearly to the changes in net income. It was positive but low at 0.58% in 2021, turned negative with a significant decline to -3.3% in 2022, and then improved sharply to 6.66% in 2023. In 2024, ROA surged substantially to 26.92%, demonstrating much more efficient use of assets to generate profits.

In summary, while the company faced a challenging period in 2022 marked by losses and shrinking assets, it managed a robust turnaround in subsequent years. The considerable increase in net income and ROA in 2023 and 2024 highlights improved operational effectiveness and profitability, despite the relatively stable asset base. This trend suggests enhanced financial performance and strategic success during the later period, positioning the company favorably for future growth.


Comparison to Competitors

AppLovin Corp., ROA, long-term trends, comparison to competitors

Microsoft Excel

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).


Comparison to Sector (Software & Services)

AppLovin Corp., ROA, long-term trends, comparison to sector (software & services)

Microsoft Excel

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).


Comparison to Industry (Information Technology)

AppLovin Corp., ROA, long-term trends, comparison to industry (information technology)

Microsoft Excel

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).