Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
CrowdStrike Holdings Inc., profitability ratios
Based on: 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31).
- Gross Profit Margin
- The gross profit margin has remained relatively stable over the observed periods, fluctuating modestly between approximately 70.58% and 75.27%. This indicates a consistently strong ability to retain profit from revenue after accounting for the cost of goods sold, with a slight improvement noted in the most recent years.
- Operating Profit Margin
- The operating profit margin showed significant improvement from a negative margin of -30.34% in 2020 to nearly breakeven levels around -0.07% in 2024. However, this improvement was not sustained as it deteriorated to -3.05% in 2025. The trend suggests efforts were made to control operating costs and improve operational efficiency but recent indications show some challenges.
- Net Profit Margin
- The net profit margin followed a pattern consistent with operating margin trends but exhibited greater volatility. Starting with a deep negative margin of -29.45% in 2020, there was a notable improvement to positive profitability of 2.92% in 2024, indicating a brief period of net income generation. However, this gain was not maintained, with net margin slipping back to -0.49% in 2025. This reflects fluctuations in overall profitability after all expenses, taxes, and other factors are considered.
- Return on Equity (ROE)
- ROE shows a similar volatile pattern, starting at a highly negative -19.1% in 2020. Although it improved to a positive 3.88% in 2024, it subsequently declined to -0.59% in 2025. This volatility suggests challenges in generating returns for shareholders consistently, with some annual recovery but poor performance in the most recent year.
- Return on Assets (ROA)
- ROA mirrors the overall profitability trend with negative returns initially (-10.09% in 2020), marginal improvements observed by 2024 (1.34%), and a slight decline to -0.22% in 2025. This indicates the company has struggled to efficiently utilize its assets to generate profits, though brief positive performance was realized before a recent downturn.
Return on Sales
Return on Investment
Gross Profit Margin
CrowdStrike Holdings Inc., gross profit margin calculation, comparison to benchmarks
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Gross profit | 2,962,143) | 2,299,832) | 1,640,005) | 1,068,373) | 644,893) | 339,786) | |
| Revenue | 3,953,624) | 3,055,555) | 2,241,236) | 1,451,594) | 874,438) | 481,413) | |
| Profitability Ratio | |||||||
| Gross profit margin1 | 74.92% | 75.27% | 73.17% | 73.60% | 73.75% | 70.58% | |
| Benchmarks | |||||||
| Gross Profit Margin, Competitors2 | |||||||
| Accenture PLC | 31.91% | 32.61% | 32.34% | 31.99% | 32.38% | 31.53% | |
| Adobe Inc. | 89.27% | 89.04% | 87.87% | 87.70% | 88.18% | 86.62% | |
| AppLovin Corp. | — | 75.22% | 67.74% | 55.41% | 64.62% | — | |
| Cadence Design Systems Inc. | — | 86.05% | 89.36% | 89.57% | 89.73% | 88.61% | |
| Datadog Inc. | — | 80.79% | 80.74% | 79.30% | 77.23% | 78.43% | |
| International Business Machines Corp. | — | 56.65% | 55.45% | 54.00% | 54.90% | 48.32% | |
| Intuit Inc. | 79.57% | 78.72% | 78.13% | 81.09% | 82.53% | 82.05% | |
| Microsoft Corp. | 68.82% | 69.76% | 68.92% | 68.40% | 68.93% | 67.78% | |
| Oracle Corp. | 70.51% | 71.41% | 72.85% | 79.08% | 80.59% | 79.68% | |
| Palantir Technologies Inc. | — | 80.25% | 80.62% | 78.56% | 77.99% | 67.74% | |
| Palo Alto Networks Inc. | 73.41% | 74.35% | 72.29% | 68.76% | 70.05% | 70.68% | |
| Salesforce Inc. | 77.19% | 75.50% | 73.34% | 73.48% | 74.41% | 75.23% | |
| ServiceNow Inc. | 77.53% | 79.18% | 78.59% | 78.29% | 77.05% | — | |
| Synopsys Inc. | 76.98% | 79.68% | 79.08% | 79.07% | 79.50% | 78.44% | |
| Workday Inc. | 75.50% | 75.60% | 72.41% | 72.21% | 72.25% | 70.63% | |
Based on: 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31).
1 2025 Calculation
Gross profit margin = 100 × Gross profit ÷ Revenue
= 100 × 2,962,143 ÷ 3,953,624 = 74.92%
2 Click competitor name to see calculations.
The financial data reveals significant growth and stability in key metrics over the analyzed period. Revenue demonstrated a consistent and substantial upward trajectory, increasing from approximately 481 million USD in early 2020 to nearly 3.95 billion USD by early 2025. This represents a strong growth pattern, indicating effective business expansion and possibly successful market penetration strategies.
Gross profit mirrored the revenue trends closely, rising from about 340 million USD in 2020 to over 2.96 billion USD in 2025. The increase in gross profit aligns with the revenue growth, reflecting the company's ability to scale operations while maintaining profitability in core activities.
The gross profit margin remained relatively stable throughout the periods, fluctuating within a narrow range between approximately 70.6% and 75.3%. The margin slightly improved overall, starting at 70.58% in 2020 and reaching a peak of 75.27% in 2024 before a marginal decline to 74.92% in 2025. The stability and mild improvement in gross profit margin suggest effective cost management related to the production or service delivery, allowing the company to retain a high proportion of revenue as gross profit despite significant growth in total revenue.
- Revenue Growth
- Showed a robust upward trend, increasing approximately eightfold from 2020 to 2025, indicating strong market expansion and sales performance.
- Gross Profit Growth
- Increased consistently in line with revenue, suggesting scalable operations and sustained profitability in primary business functions.
- Gross Profit Margin Stability
- Maintained a high margin ranging between 70.58% and 75.27%, reflecting efficient cost control and stable product or service pricing strategies.
Operating Profit Margin
CrowdStrike Holdings Inc., operating profit margin calculation, comparison to benchmarks
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Loss from operations | (120,430) | (1,995) | (190,112) | (142,548) | (92,529) | (146,065) | |
| Revenue | 3,953,624) | 3,055,555) | 2,241,236) | 1,451,594) | 874,438) | 481,413) | |
| Profitability Ratio | |||||||
| Operating profit margin1 | -3.05% | -0.07% | -8.48% | -9.82% | -10.58% | -30.34% | |
| Benchmarks | |||||||
| Operating Profit Margin, Competitors2 | |||||||
| Accenture PLC | 14.68% | 14.79% | 13.74% | 15.21% | 15.08% | 14.69% | |
| Adobe Inc. | 36.63% | 31.35% | 34.26% | 34.64% | 36.76% | 32.93% | |
| AppLovin Corp. | — | 39.78% | 19.74% | -1.70% | 5.37% | — | |
| Cadence Design Systems Inc. | — | 29.10% | 30.59% | 30.15% | 26.07% | 24.06% | |
| Datadog Inc. | — | 2.02% | -1.57% | -3.50% | -1.86% | -2.28% | |
| International Business Machines Corp. | — | 14.95% | 15.17% | 13.50% | 11.97% | 9.22% | |
| Intuit Inc. | 26.14% | 22.29% | 21.86% | 20.20% | 25.95% | 28.34% | |
| Microsoft Corp. | 45.62% | 44.64% | 41.77% | 42.06% | 41.59% | 37.03% | |
| Oracle Corp. | 30.80% | 28.99% | 26.21% | 25.74% | 37.58% | 35.57% | |
| Palantir Technologies Inc. | — | 10.83% | 5.39% | -8.46% | -26.66% | -107.41% | |
| Palo Alto Networks Inc. | 13.48% | 8.52% | 5.62% | -3.43% | -7.15% | -5.25% | |
| Salesforce Inc. | 19.01% | 14.38% | 3.29% | 2.07% | 2.14% | 1.74% | |
| ServiceNow Inc. | 13.74% | 12.42% | 8.49% | 4.90% | 4.36% | — | |
| Synopsys Inc. | 12.97% | 22.13% | 21.72% | 22.87% | 17.48% | 16.83% | |
| Workday Inc. | 4.91% | 2.52% | -3.57% | -2.27% | -5.76% | -13.85% | |
| Operating Profit Margin, Sector | |||||||
| Software & Services | — | 30.31% | 27.20% | 27.08% | 27.93% | — | |
| Operating Profit Margin, Industry | |||||||
| Information Technology | — | 26.60% | 24.42% | 26.32% | 26.64% | — | |
Based on: 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31).
1 2025 Calculation
Operating profit margin = 100 × Loss from operations ÷ Revenue
= 100 × -120,430 ÷ 3,953,624 = -3.05%
2 Click competitor name to see calculations.
The operating profit margin demonstrates a consistent, albeit volatile, improvement over the observed period. Initially negative and substantial, the margin gradually moves towards breakeven, though with a notable setback in the most recent year.
- Operating Profit Margin Trend
- From January 31, 2020, to January 31, 2024, the operating profit margin exhibits a trend of decreasing losses. Starting at -30.34% in 2020, it improves to -10.58% in 2021, then to -9.82% in 2022, and further to -8.48% in 2023. This indicates a strengthening ability to control operating costs relative to revenue. However, in 2025, the margin deteriorates to -3.05%, representing a significant reversal of the prior trend.
- Relationship to Revenue
- The improvement in the operating profit margin generally aligns with substantial revenue growth. Revenue increased significantly from US$481,413 thousand in 2020 to US$3,953,624 thousand in 2025. While revenue growth appears to be a key driver of margin improvement, the 2025 results suggest that revenue growth alone is insufficient to ensure profitability.
- Loss from Operations
- The absolute value of the loss from operations decreased from US$146,065 thousand in 2020 to a minimal loss of US$1,995 thousand in 2024. This reduction in operational losses is consistent with the improving operating profit margin. However, the loss from operations increased substantially to US$120,430 thousand in 2025, mirroring the decline in the operating profit margin.
The company experienced a period of substantial operational improvement, demonstrated by the narrowing of operating losses and the improving operating profit margin. The recent shift in 2025 warrants further investigation to determine the underlying causes of the margin decline and the increased loss from operations.
Net Profit Margin
CrowdStrike Holdings Inc., net profit margin calculation, comparison to benchmarks
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net income (loss) attributable to CrowdStrike | (19,271) | 89,327) | (183,245) | (234,802) | (92,629) | (141,779) | |
| Revenue | 3,953,624) | 3,055,555) | 2,241,236) | 1,451,594) | 874,438) | 481,413) | |
| Profitability Ratio | |||||||
| Net profit margin1 | -0.49% | 2.92% | -8.18% | -16.18% | -10.59% | -29.45% | |
| Benchmarks | |||||||
| Net Profit Margin, Competitors2 | |||||||
| Accenture PLC | 11.02% | 11.19% | 10.72% | 11.17% | 11.69% | 11.52% | |
| Adobe Inc. | 30.00% | 25.85% | 27.97% | 27.01% | 30.55% | 40.88% | |
| AppLovin Corp. | — | 33.55% | 10.87% | -6.84% | 1.27% | — | |
| Cadence Design Systems Inc. | — | 22.74% | 25.46% | 23.84% | 23.29% | 22.02% | |
| Datadog Inc. | — | 6.85% | 2.28% | -2.99% | -2.02% | -4.07% | |
| International Business Machines Corp. | — | 9.60% | 12.13% | 2.71% | 10.01% | 7.59% | |
| Intuit Inc. | 20.55% | 18.19% | 16.59% | 16.23% | 21.41% | 23.78% | |
| Microsoft Corp. | 36.15% | 35.96% | 34.15% | 36.69% | 36.45% | 30.96% | |
| Oracle Corp. | 21.68% | 19.76% | 17.02% | 15.83% | 33.96% | 25.94% | |
| Palantir Technologies Inc. | — | 16.13% | 9.43% | -19.61% | -33.75% | -106.75% | |
| Palo Alto Networks Inc. | 12.30% | 32.11% | 6.38% | -4.85% | -11.72% | -7.83% | |
| Salesforce Inc. | 16.35% | 11.87% | 0.66% | 5.45% | 19.16% | 0.74% | |
| ServiceNow Inc. | 13.16% | 12.97% | 19.30% | 4.49% | 3.90% | — | |
| Synopsys Inc. | 18.89% | 36.94% | 21.05% | 19.38% | 18.02% | 18.03% | |
| Workday Inc. | 6.23% | 19.02% | -5.90% | 0.57% | -6.54% | -13.25% | |
| Net Profit Margin, Sector | |||||||
| Software & Services | — | 24.71% | 21.78% | 21.43% | 25.04% | — | |
| Net Profit Margin, Industry | |||||||
| Information Technology | — | 20.64% | 20.33% | 22.35% | 23.54% | — | |
Based on: 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31).
1 2025 Calculation
Net profit margin = 100 × Net income (loss) attributable to CrowdStrike ÷ Revenue
= 100 × -19,271 ÷ 3,953,624 = -0.49%
2 Click competitor name to see calculations.
The net profit margin exhibited significant fluctuation over the observed period. Initially negative, the metric progressed towards profitability before declining again in the most recent year presented.
- Net Profit Margin Trend (2020-2025)
- In 2020, the net profit margin stood at -29.45%. This represents a substantial loss relative to revenue. A notable improvement occurred in 2021, with the net profit margin increasing to -10.59%, indicating a reduction in the rate of loss.
- The net profit margin continued to be negative in 2022 (-16.18%) and 2023 (-8.18%), although the magnitude of the loss decreased each year. This suggests improving operational efficiency or cost management, but insufficient to generate overall profit.
- A significant turning point was reached in 2024, as the net profit margin turned positive, reaching 2.92%. This indicates the company achieved profitability, generating a net income of 2.92% for every dollar of revenue.
- However, this profitability was not sustained, as the net profit margin decreased to -0.49% in 2025. This reversion to a negative margin suggests challenges in maintaining profitability, potentially due to increased costs or decreased revenue growth.
The progression from substantial losses to brief profitability and then back to a loss highlights a volatile period for the company. While revenue consistently increased throughout the period, the ability to translate that revenue into net income appears inconsistent. Further investigation into the factors influencing cost of goods sold and operating expenses would be necessary to understand the drivers behind these fluctuations.
Return on Equity (ROE)
CrowdStrike Holdings Inc., ROE calculation, comparison to benchmarks
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net income (loss) attributable to CrowdStrike | (19,271) | 89,327) | (183,245) | (234,802) | (92,629) | (141,779) | |
| Total CrowdStrike Holdings, Inc. stockholders’ equity | 3,279,494) | 2,303,950) | 1,463,641) | 1,025,764) | 870,574) | 742,107) | |
| Profitability Ratio | |||||||
| ROE1 | -0.59% | 3.88% | -12.52% | -22.89% | -10.64% | -19.10% | |
| Benchmarks | |||||||
| ROE, Competitors2 | |||||||
| Accenture PLC | 24.61% | 25.68% | 26.75% | 31.11% | 30.25% | 30.05% | |
| Adobe Inc. | 61.34% | 39.42% | 32.86% | 33.85% | 32.59% | 39.66% | |
| AppLovin Corp. | — | 144.96% | 28.39% | -10.13% | 1.66% | — | |
| Cadence Design Systems Inc. | — | 22.58% | 30.58% | 30.93% | 25.39% | 23.69% | |
| Datadog Inc. | — | 6.77% | 2.40% | -3.56% | -1.99% | -2.56% | |
| International Business Machines Corp. | — | 22.06% | 33.29% | 7.47% | 30.38% | 27.14% | |
| Intuit Inc. | 19.63% | 16.07% | 13.81% | 12.57% | 20.89% | 35.76% | |
| Microsoft Corp. | 29.65% | 32.83% | 35.09% | 43.68% | 43.15% | 37.43% | |
| Oracle Corp. | 60.84% | 120.26% | 792.45% | — | 262.43% | 83.94% | |
| Palantir Technologies Inc. | — | 9.24% | 6.04% | -14.57% | -22.71% | -76.61% | |
| Palo Alto Networks Inc. | 14.49% | 49.86% | 25.15% | -127.14% | -78.63% | -24.23% | |
| Salesforce Inc. | 10.13% | 6.93% | 0.36% | 2.48% | 9.81% | 0.37% | |
| ServiceNow Inc. | 13.48% | 14.83% | 22.69% | 6.46% | 6.22% | — | |
| Synopsys Inc. | 4.70% | 25.17% | 20.01% | 17.85% | 14.31% | 13.54% | |
| Workday Inc. | 5.82% | 17.09% | -6.57% | 0.65% | -8.62% | -19.33% | |
| ROE, Sector | |||||||
| Software & Services | — | 28.69% | 28.33% | 30.61% | 35.77% | — | |
| ROE, Industry | |||||||
| Information Technology | — | 29.36% | 31.85% | 38.86% | 42.21% | — | |
Based on: 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31).
1 2025 Calculation
ROE = 100 × Net income (loss) attributable to CrowdStrike ÷ Total CrowdStrike Holdings, Inc. stockholders’ equity
= 100 × -19,271 ÷ 3,279,494 = -0.59%
2 Click competitor name to see calculations.
The Return on Equity (ROE) exhibited significant volatility over the observed period. Initially negative, the ROE gradually improved before experiencing another decline in the most recent year presented.
- Overall Trend
- From January 31, 2020, to January 31, 2024, the ROE demonstrated a fluctuating pattern. It began with a negative value of -19.10%, improved to -10.64% and -12.52% in subsequent years, then turned positive at 3.88% before declining again to -0.59% by January 31, 2025.
- Net Income Impact
- The negative ROE values from 2020 through 2023 correlate with reported net losses attributable to the company during those periods. The transition to a positive ROE in 2024 coincided with the reporting of net income. However, the return to a negative value in 2025 suggests a subsequent return to net loss.
- Equity Growth
- Total stockholders’ equity consistently increased throughout the period, moving from US$742,107 thousand in 2020 to US$3,279,494 thousand in 2025. This growth in equity, while positive, did not consistently translate into improved ROE, particularly when offset by net losses.
- ROE Volatility
- The substantial swings in ROE indicate a sensitivity to changes in net income. Despite the consistent growth in equity, the company’s profitability remained a key determinant of its ROE performance. The most recent decline in ROE, despite continued equity growth, highlights this relationship.
The observed pattern suggests that while the company has been successful in increasing its equity base, sustained profitability is crucial for generating positive and stable returns for shareholders.
Return on Assets (ROA)
CrowdStrike Holdings Inc., ROA calculation, comparison to benchmarks
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net income (loss) attributable to CrowdStrike | (19,271) | 89,327) | (183,245) | (234,802) | (92,629) | (141,779) | |
| Total assets | 8,701,578) | 6,646,520) | 5,026,540) | 3,618,381) | 2,732,533) | 1,404,906) | |
| Profitability Ratio | |||||||
| ROA1 | -0.22% | 1.34% | -3.65% | -6.49% | -3.39% | -10.09% | |
| Benchmarks | |||||||
| ROA, Competitors2 | |||||||
| Accenture PLC | 11.74% | 12.99% | 13.41% | 14.55% | 13.68% | 13.78% | |
| Adobe Inc. | 24.17% | 18.39% | 18.23% | 17.51% | 17.70% | 21.66% | |
| AppLovin Corp. | — | 26.92% | 6.66% | -3.30% | 0.58% | — | |
| Cadence Design Systems Inc. | — | 11.76% | 18.36% | 16.53% | 15.87% | 14.95% | |
| Datadog Inc. | — | 3.18% | 1.23% | -1.67% | -0.87% | -1.30% | |
| International Business Machines Corp. | — | 4.39% | 5.55% | 1.29% | 4.35% | 3.58% | |
| Intuit Inc. | 10.47% | 9.22% | 8.58% | 7.45% | 13.29% | 16.70% | |
| Microsoft Corp. | 16.45% | 17.21% | 17.56% | 19.94% | 18.36% | 14.70% | |
| Oracle Corp. | 7.39% | 7.42% | 6.33% | 6.15% | 10.48% | 8.78% | |
| Palantir Technologies Inc. | — | 7.29% | 4.64% | -10.80% | -16.02% | -43.35% | |
| Palo Alto Networks Inc. | 4.81% | 12.89% | 3.03% | -2.18% | -4.87% | -2.95% | |
| Salesforce Inc. | 6.02% | 4.14% | 0.21% | 1.52% | 6.14% | 0.23% | |
| ServiceNow Inc. | 6.71% | 6.99% | 9.96% | 2.44% | 2.13% | — | |
| Synopsys Inc. | 2.76% | 17.31% | 11.90% | 10.45% | 8.66% | 8.27% | |
| Workday Inc. | 2.93% | 8.39% | -2.72% | 0.28% | -3.24% | -7.05% | |
| ROA, Sector | |||||||
| Software & Services | — | 12.19% | 11.12% | 11.25% | 12.14% | — | |
| ROA, Industry | |||||||
| Information Technology | — | 11.95% | 12.47% | 14.49% | 14.60% | — | |
Based on: 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31).
1 2025 Calculation
ROA = 100 × Net income (loss) attributable to CrowdStrike ÷ Total assets
= 100 × -19,271 ÷ 8,701,578 = -0.22%
2 Click competitor name to see calculations.
The Return on Assets (ROA) exhibited significant fluctuations over the observed period. Initially negative, the ROA gradually improved before experiencing another decline in the most recent year presented.
- Overall Trend
- The ROA began at -10.09% in 2020 and demonstrated a pattern of improvement through 2023, reaching a positive value of 1.34%. However, this positive trend reversed in 2025, with the ROA declining to -0.22%.
- Initial Years (2020-2022)
- From 2020 to 2022, the ROA remained negative, indicating that the company was not generating sufficient earnings relative to its total assets. The magnitude of the negative ROA decreased from -10.09% in 2020 to -6.49% in 2022, suggesting a lessening of losses in relation to asset base.
- Improvement and Reversal (2023-2025)
- A substantial improvement was observed in 2023, with the ROA turning positive at 1.34%. This indicates increased profitability relative to the asset base. However, this positive momentum was not sustained, as the ROA decreased to -0.22% in 2025, suggesting a decline in profitability or an increase in the asset base without a corresponding increase in earnings.
- Relationship to Net Income
- The ROA’s trajectory closely mirrors the trend in net income. The initial negative ROA values correspond with net losses, while the positive ROA in 2023 aligns with reported net income. The return to a negative ROA in 2025 coincides with a net loss for that year.
- Relationship to Total Assets
- Total assets increased consistently throughout the period. The initial negative ROA values, despite increasing assets, suggest that earnings were not keeping pace with asset growth. The positive ROA in 2023 indicates a period where earnings growth outpaced asset growth. The subsequent decline in ROA in 2025, despite continued asset growth, suggests that earnings decreased relative to the expanded asset base.