CAVA Group, Inc. (CAVA)

Total asset turnover

		Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022
Revenue (ttm)	US$ in thousands	1,036,533	963,713	913,488	845,224	784,623	728,700	681,465	645,170	608,191	564,119	551,350
Total assets	US$ in thousands	1,228,360	1,169,670	1,079,540	1,038,540	1,005,090	1,060,830	984,974	970,375	674,506	654,435	654,435
Total asset turnover		0.84	0.82	0.85	0.81	0.78	0.69	0.69	0.66	0.90	0.86	0.84

March 31, 2025 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $1,036,533K ÷ $1,228,360K
= 0.84

The total asset turnover ratio of CAVA Group, Inc. demonstrates notable fluctuations over the analyzed period from September 30, 2022, to March 31, 2025. Initially, the ratio increased from 0.84 in September 2022 to 0.86 at the end of 2022, indicating a modest improvement in the company's efficiency in generating sales from its assets.

Throughout the first quarter of 2023, the ratio rose further to 0.90, suggesting enhanced asset utilization and more effective sales generation relative to the company's asset base. However, by the second quarter of 2023, the ratio saw a decline to 0.66, signaling a reduction in sales efficiency which could be attributable to operational challenges, increased asset base without proportional sales growth, or strategic shifts.

Subsequently, the ratio experienced a slight recovery, rising to 0.69 by September 2023 and maintaining the same level into December 2023. The upward trend continued into the first quarter of 2024 with the ratio reaching 0.78, and further improved to 0.81 by June 2024. The ratio peaked at 0.85 on September 30, 2024, reflecting significant enhancements in asset utilization efficiency.

From this peak, a marginal decline to 0.82 occurred at the close of 2024, followed by a slight increase to 0.84 in the first quarter of 2025. Overall, the total asset turnover ratio exhibits periods of both growth and contraction, with the highest efficiency observed in late 2024. The pattern indicates that while the company experienced a period of strengthening asset utilization, recent data suggests a stabilization at a relatively high level, implying balanced operational efficiency within the context of asset management.