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Fastly (Fastly) ROA % : -5.91% (As of Dec. 2023)


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What is Fastly ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Fastly's annualized Net Income for the quarter that ended in Dec. 2023 was $-93.5 Mil. Fastly's average Total Assets over the quarter that ended in Dec. 2023 was $1,582.9 Mil. Therefore, Fastly's annualized ROA % for the quarter that ended in Dec. 2023 was -5.91%.

The historical rank and industry rank for Fastly's ROA % or its related term are showing as below:

FSLY' s ROA % Range Over the Past 10 Years
Min: -27.93   Med: -13.18   Max: -7.75
Current: -7.75

During the past 7 years, Fastly's highest ROA % was -7.75%. The lowest was -27.93%. And the median was -13.18%.

FSLY's ROA % is ranked worse than
69.23% of 2818 companies
in the Software industry
Industry Median: 1.03 vs FSLY: -7.75

Fastly ROA % Historical Data

The historical data trend for Fastly's ROA % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Fastly ROA % Chart

Fastly Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROA %
Get a 7-Day Free Trial -21.31 -12.45 -13.18 -9.41 -7.78

Fastly Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROA % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -9.81 -9.51 -2.43 -13.17 -5.91

Competitive Comparison of Fastly's ROA %

For the Software - Application subindustry, Fastly's ROA %, along with its competitors' market caps and ROA % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Fastly's ROA % Distribution in the Software Industry

For the Software industry and Technology sector, Fastly's ROA % distribution charts can be found below:

* The bar in red indicates where Fastly's ROA % falls into.



Fastly ROA % Calculation

Fastly's annualized ROA % for the fiscal year that ended in Dec. 2023 is calculated as:

ROA %=Net Income (A: Dec. 2023 )/( (Total Assets (A: Dec. 2022 )+Total Assets (A: Dec. 2023 ))/ count )
=-133.088/( (1896.113+1525.191)/ 2 )
=-133.088/1710.652
=-7.78 %

Fastly's annualized ROA % for the quarter that ended in Dec. 2023 is calculated as:

ROA %=Net Income (Q: Dec. 2023 )/( (Total Assets (Q: Sep. 2023 )+Total Assets (Q: Dec. 2023 ))/ count )
=-93.544/( (1640.663+1525.191)/ 2 )
=-93.544/1582.927
=-5.91 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data, the Net Income data used here is four times the quarterly (Dec. 2023) net income data. ROA % is displayed in the 30-year financial page.


Fastly  (NYSE:FSLY) ROA % Explanation

ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A bank’s ROA % is typically well under 2%.

Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:

ROA %(Q: Dec. 2023 )
=Net Income/Total Assets
=-93.544/1582.927
=(Net Income / Revenue)*(Revenue / Total Assets)
=(-93.544 / 551.108)*(551.108 / 1582.927)
=Net Margin %*Asset Turnover
=-16.97 %*0.3482
=-5.91 %

Note: The Net Income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) revenue data.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).

Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.

E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.


Fastly ROA % Related Terms

Thank you for viewing the detailed overview of Fastly's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.


Fastly (Fastly) Business Description

Traded in Other Exchanges
Address
475 Brannan Street, Suite 300, San Francisco, CA, USA, 94107
Fastly operates a content delivery network, which is necessary for entities to provide faster and more reliable online content. Fastly's strategy differs from traditional CDNs, which focus on locating servers in as many locations as possible to store copies of files that consumers most use. Fastly is in far fewer sites than traditional CDNs, but it houses servers in the most network-dense data centers. Instead of simply storing static content, it allows its customers to program on its platform, enabling edge computing and better service of the more dynamic content that was traditionally not well served by CDNs. Fastly gears its service to the largest, most sophisticated enterprises rather than small companies and generated nearly three fourths of its revenue in the United States in 2022.
Executives
Ronald W Kisling officer: Chief Financial Officer 2400 BRIDGE PARKWAY, REDWOOD SHORES CA 940651166
Artur Bergman director, 10 percent owner, officer: Chief Executive Officer C/O FASTLY, INC., 475 BRANNAN STREET, SUITE 300, SAN FRANCISCO CA 94107
Brett Shirk officer: Chief Revenue Officer 350 ELLIS STREET, MOUNTAIN VIEW CA 94043
Christopher B Paisley director 14870 THREE OAKS COURT, SARATOGA CA 95070
Todd Nightingale director, officer: CEO C/O FASTLY, INC., 475 BRANNAN SUITE 300, SAN FRANCISCO CA 94107
David Hornik director, 10 percent owner 2480 SAND HILL ROAD, SUITE 101, MENLO PARK CA 94025
Joshua Bixby officer: President C/O FASTLY, INC., 475 BRANNAN STREET, SUITE 300, SAN FRANCISCO CA 94107
Richard Devon Daniels director 3005 TASMAN DRIVE, SANTA CLARA CA 95054
Paul Luongo officer: General Counsel C/O FASTLY, INC., 475 BRANNAN STREET, SUITE 300, SAN FRANCISCO CA 94107
Vanessa C. Smith director C/O FASTLY, 475 BRANNAN STREET, SUITE 300, SAN FRANCISCO CA 94107
Adriel G Lares officer: Chief Financial Officer C/O FASTLY, INC., 475 BRANNAN STREET, SUITE 300, SAN FRANCISCO CA 94107
Charles J Meyers director 301 VELOCITY WAY, 5TH FLOOR, FOSTER CITY CA 94404
Paula Loop director C/O ROBINHOOD MARKETS, INC., 85 WILLOW ROAD, MENLO PARK CA 94025
Abdiel Qualified Master Fund Lp 10 percent owner 90 PARK AVENUE, 29TH FLOOR, NEW YORK NY 10016
Abdiel Capital Lp 10 percent owner C/O ABDIEL CAPITAL ADVISORS, LP, 90 PARK AVENUE, 29TH FLOOR, NEW YORK NY 10016