Chuy's Holdings Inc (CHUY)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Operating income (ttm)	US$ in thousands	33,589	29,645	27,722	24,623	22,336	27,392	29,259	34,525	34,402	29,040	25,083	15,280	-8,544	-13,554	-20,091	-17,799	3,436	7,958	2,120	2,964
Total assets	US$ in thousands	476,634	474,303	487,822	479,433	474,781	479,400	488,616	479,849	495,324	499,427	515,905	498,165	493,675	487,686	486,081	449,414	446,069	448,335	455,193	442,693
Operating ROA		7.05%	6.25%	5.68%	5.14%	4.70%	5.71%	5.99%	7.19%	6.95%	5.81%	4.86%	3.07%	-1.73%	-2.78%	-4.13%	-3.96%	0.77%	1.78%	0.47%	0.67%

December 31, 2023 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $33,589K ÷ $476,634K
= 7.05%

Based on the provided data, Chuy's Holdings Inc's operating return on assets (operating ROA) has shown a fluctuating trend over the past eight quarters. The operating ROA ranged from 6.06% in Q4 2022 to 8.09% in Q4 2023, indicating some volatility in the company's operating performance efficiency during this period.

On average, the operating ROA over the eight quarters is approximately 7.21%. This implies that, on average, the company generates $0.0721 in operating income for every $1 of assets it holds. A higher operating ROA indicates that the company is utilizing its assets more efficiently to generate operating income.

The decrease in operating ROA from Q4 2022 to Q1 2023 may be a cause for concern, as it dropped from 6.06% to 6.29%. However, the subsequent increase in Q2 2023, Q3 2023, and Q4 2023 to 6.77%, 7.33%, and 8.09%, respectively, shows a positive upward trend in operating efficiency.

It is crucial for Chuy's Holdings Inc to continue monitoring and improving its operating ROA to ensure sustainable profitability and efficient utilization of its assets in the long term. The company should focus on enhancing operational efficiency, optimizing asset utilization, and driving revenue growth to maintain or further improve its operating ROA performance.