Domino's Pizza Inc Common Stock (DPZ)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 878,999 | 819,519 | 767,925 | 780,408 | 725,642 |
| Total assets | US$ in thousands | 1,737,010 | 1,674,900 | 1,602,220 | 1,671,820 | 1,567,170 |
| Operating ROA | 50.60% | 48.93% | 47.93% | 46.68% | 46.30% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $878,999K ÷ $1,737,010K
= 50.60%
Operating Return on Assets (ROA) is a key financial ratio that measures a company's ability to generate profit from its assets used in operations. Looking at the data provided for Domino's Pizza Inc Common Stock, we observe a consistent upward trend in the Operating ROA over the years.
As of December 31, 2020, the Operating ROA was reported at 46.30%, indicating that the company generated $0.463 in operating income for every $1 of assets employed in its operations. This ratio improved to 46.68% by the end of 2021, continued to increase to 47.93% in 2022, further rose to 48.93% in 2023, and reached 50.60% by December 31, 2024.
The increasing trend in Operating ROA implies that Domino's Pizza Inc has been effectively utilizing its assets to generate operating income, showcasing operational efficiency and profitability. This consistent improvement signifies the company's ability to drive higher returns from its asset base over the years.
Investors and stakeholders may view the rising Operating ROA positively as it indicates that Domino's Pizza Inc is becoming more efficient in generating profits from its operational investments. However, it's essential to consider other factors and ratios in conjunction with Operating ROA for a comprehensive analysis of the company's financial performance and operational effectiveness.
Peer comparison
Dec 31, 2024