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

	ROA	=	100	×	Net income (loss) attributable to AppLovin¹	÷	Total assets¹
Dec 31, 2024	26.92%	=	100	×	1,579,776)	÷	5,869,259)
Dec 31, 2023	6.66%	=	100	×	356,711)	÷	5,359,187)
Dec 31, 2022	-3.30%	=	100	×	(192,746)	÷	5,847,846)
Dec 31, 2021	0.58%	=	100	×	35,446)	÷	6,163,579)

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 return on assets (ROA) exhibited significant fluctuations between 2021 and 2024. A substantial shift is evident when examining the progression of this metric over the four-year period.

ROA Trend: In 2021, the ROA stood at 0.58%. This value decreased considerably in 2022, resulting in a negative ROA of -3.30%. A marked improvement occurred in 2023, with the ROA rising to 6.66%. The most substantial increase was observed in 2024, where the ROA reached 26.92%.
Net Income Influence: The ROA’s movement correlates strongly with net income attributable to AppLovin. The negative ROA in 2022 aligns with the reported net loss for that year. Conversely, the positive and increasing ROA values in 2023 and 2024 correspond with increasing net income, culminating in a substantial profit in 2024.
Asset Base Consideration: Total assets decreased from 2021 to 2023, moving from US$6,163,579 thousand to US$5,359,187 thousand. However, assets increased in 2024 to US$5,869,259 thousand. The significant ROA increase in 2024 occurred despite this relatively modest asset increase, indicating a strong improvement in profitability relative to the asset base.

Overall, the ROA demonstrates a volatile pattern, heavily influenced by net income performance. The substantial increase in ROA in 2024 suggests a significant enhancement in the company’s ability to generate earnings from its assets.

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

	AppLovin Corp.	Accenture PLC	Adobe Inc.	Cadence Design Systems Inc.	CrowdStrike Holdings Inc.	Datadog Inc.	International Business Machines Corp.	Intuit Inc.	Microsoft Corp.	Oracle Corp.	Palantir Technologies Inc.	Palo Alto Networks Inc.	Salesforce Inc.	ServiceNow Inc.	Synopsys Inc.	Workday Inc.
Dec 31, 2024	26.92%	12.99%	18.39%	11.76%	1.34%	3.18%	4.39%	9.22%	17.21%	7.42%	7.29%	12.89%	4.14%	6.99%	17.31%	8.39%
Dec 31, 2023	6.66%	13.41%	18.23%	18.36%	-3.65%	1.23%	5.55%	8.58%	17.56%	6.33%	4.64%	3.03%	0.21%	9.96%	11.90%	-2.72%
Dec 31, 2022	-3.30%	14.55%	17.51%	16.53%	-6.49%	-1.67%	1.29%	7.45%	19.94%	6.15%	-10.80%	-2.18%	1.52%	2.44%	10.45%	0.28%
Dec 31, 2021	0.58%	13.68%	17.70%	15.87%	-3.39%	-0.87%	4.35%	13.29%	18.36%	10.48%	-16.02%	-4.87%	6.14%	2.13%	8.66%	-3.24%