Bellring Brands LLC (BRBR)

Operating return on assets (Operating ROA)

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Operating income	US$ in thousands	287,300	212,400	168,000	164,000
Total assets	US$ in thousands	691,600	707,200	696,500	653,500
Operating ROA		41.54%	30.03%	24.12%	25.10%

September 30, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $287,300K ÷ $691,600K
= 41.54%

The operating return on assets (operating ROA) for Bellring Brands Inc has shown a positive trend over the past five years, increasing from 27.33% in 2019 to 41.54% in 2023. This indicates that the company has been able to generate increasing operating profit from its assets over this period.

The rise in operating ROA suggests that the company's operating earnings have been effectively utilized in generating revenue relative to its asset base. This could be attributed to efficient management of assets or an increase in operating income without a significant increase in assets.

The significant improvement in operating ROA from 2022 to 2023, from 30.03% to 41.54%, indicates a robust performance in utilizing its assets to generate operating income. It may reflect improved operational efficiency, cost management, or increased revenue generation from existing assets.

Overall, the upward trend in operating ROA reflects positively on the company's ability to generate operating income from its asset base, indicating potential effectiveness in managing its resources to generate profit. However, it's important to consider other financial metrics and factors to gain a comprehensive understanding of the company's financial performance and operating efficiency.