Cracker Barrel Old Country Store (CBRL)

Operating return on assets (Operating ROA)

		Aug 2, 2024	Jul 28, 2023	Jul 29, 2022	Jul 30, 2021	Jul 31, 2020
Operating income	US$ in thousands	45,119	120,617	153,003	366,659	103,611
Total assets	US$ in thousands	2,161,490	2,218,090	2,294,910	2,391,690	2,544,260
Operating ROA		2.09%	5.44%	6.67%	15.33%	4.07%

August 2, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $45,119K ÷ $2,161,490K
= 2.09%

The operating return on assets (operating ROA) for Cracker Barrel Old Country Store has shown fluctuations over the past five years. The trend indicates a decline in operating ROA from 15.33% in July 2021 to 2.09% in August 2024. This decline suggests that the company may be experiencing challenges in effectively utilizing its assets to generate operating income.

The operating ROA of 2.09% in August 2024 is significantly lower compared to the levels seen in the previous years, including a peak of 15.33% in July 2021. This significant decrease may raise concerns about the company's operational efficiency and profitability.

Further analysis, beyond just the ratios, is recommended to understand the underlying factors contributing to the decline in operating ROA. It is essential for stakeholders to monitor the company's operational performance closely and identify areas for improvement to enhance the return on its assets.