The Chefs Warehouse Inc (CHEF)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 100,943 | 85,738 | 10,811 | -102,660 | 50,667 |
| Total assets | US$ in thousands | 1,705,310 | 1,509,300 | 1,073,800 | 974,325 | 1,013,680 |
| Operating ROA | 5.92% | 5.68% | 1.01% | -10.54% | 5.00% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $100,943K ÷ $1,705,310K
= 5.92%
The operating return on assets (operating ROA) for The Chefs Warehouse Inc has shown variability over the past five years. In 2023, the operating ROA was 5.92%, representing a slight improvement from the previous year's 5.68%. This indicates that the company generated approximately $0.0592 in operating income for every dollar of assets employed in its operations.
The significant increase in operating ROA from 2021 to 2022, where it rose from 1.01% to 5.68%, reflects an enhanced efficiency in utilizing assets to generate operating income. In contrast, the sharp decline in 2020 to a negative operating ROA of -10.54% suggests operational challenges that led to a loss from assets employed in operations.
Overall, the positive trend from 2020 to 2023 indicates improvements in operational performance and asset utilization by The Chefs Warehouse Inc, potentially driven by better operational management, cost control measures, or revenue growth strategies. However, further analysis of the company's financial and operational health would be necessary to understand the factors contributing to these fluctuations in operating ROA.
Peer comparison
Dec 31, 2023