CAVA Group, Inc. (CAVA)

Return on assets (ROA)

		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
Net income (ttm)	US$ in thousands	142,033	130,319	53,749	42,616	29,414	13,280	-7,615	-26,341	-41,110	-58,987	-60,660
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
ROA		11.56%	11.14%	4.98%	4.10%	2.93%	1.25%	-0.77%	-2.71%	-6.09%	-9.01%	-9.27%

March 31, 2025 calculation

ROA = Net income (ttm) ÷ Total assets
= $142,033K ÷ $1,228,360K
= 11.56%

The analysis of CAVA Group, Inc.'s return on assets (ROA) over the specified period reveals a significant trend toward improving underlying profitability and asset utilization. Initially, as of September 30, 2022, the company reported a negative ROA of -9.27%, indicating that the firm was experiencing losses relative to its assets, which suggests challenges in generating profit efficiently from its asset base. This negative trajectory persisted through December 31, 2022, with a marginal improvement to -9.01%.

From the first quarter of 2023 onward, a notable upward trend in ROA is observed. By March 31, 2023, the ROA decreased in negativity to -6.09%, signaling a reduction in losses. This positive turn continued through June 30, 2023, when the ROA further improved to -2.71%. The most striking progression occurred by September 30, 2023, with the ROA reaching -0.77%, nearing a break-even point. The subsequent quarters demonstrate sustained improvement; by December 31, 2023, the ROA turned positive at 1.25%, indicating that the company was generating profits relative to its assets.

This upward trajectory persists into the first half of 2024, with ROA figures escalating to 2.93% for March 31, 2024, and further to 4.10% by June 30, 2024. The positive momentum continues, culminating in ROA of 4.98% as of September 30, 2024. The trend culminates with substantial growth into the end of 2024 and into early 2025, with ROA reaching 11.14% on December 31, 2024, and advancing slightly to 11.56% by March 31, 2025.

Overall, the data reflect a significant recovery in CAVA Group, Inc.'s profitability and asset efficiency over the observed periods. The transition from negative to positive ROA demonstrates effective strategic or operational improvements, leading to the company becoming more successful in generating returns from its asset base. This positive movement not only signifies operational resilience but also suggests an improving financial position and potentially increasing investor confidence.