CAVA Group, Inc. (CAVA)

Return on assets (ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	130,319	13,280	-58,987	-37,391	60,800
Total assets	US$ in thousands	1,169,670	983,757	654,435	362,832	1,739,900
ROA		11.14%	1.35%	-9.01%	-10.31%	3.49%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $130,319K ÷ $1,169,670K
= 11.14%

The return on assets (ROA) for CAVA Group, Inc. exhibits significant fluctuations over the period from December 31, 2020, through December 31, 2024. In the fiscal year ending December 31, 2020, the company posted an ROA of 3.49%, indicating a modest level of profitability relative to its total assets. However, in the subsequent year, 2021, the ROA declined sharply into negative territory at -10.31%, suggesting that the company experienced a significant decline in net income relative to its asset base, potentially due to operational challenges, increased expenses, or other adverse factors impacting profitability.

The following year, 2022, the ROA remained negative but improved slightly to -9.01%, indicating a continued struggle to generate positive returns from its assets, although the downward trend in performance appears to be moderating. In 2023, the ROA turned positive again, reaching 1.35%, which signals a return to profitability on a net income basis relative to the company's asset base. This positive shift may reflect operational improvements, efficiency gains, or strategic adjustments.

In 2024, the ROA demonstrates a substantial recovery, rising to 11.14%. This indicates a marked enhancement in the company's efficiency in generating profits from its assets, potentially representing successful strategic initiatives, increased sales, cost management, or favorable market conditions. Overall, the trajectory suggests that CAVA Group, Inc. experienced a period of financial distress in 2021 and 2022, followed by a significant recovery in 2023 and 2024, with 2024 marking a peak in asset utilization efficiency and profitability.