Brinker International Inc (EAT)

Return on assets (ROA)

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Net income	US$ in thousands	383,100	155,300	102,600	117,600	131,600
Total assets	US$ in thousands	2,678,600	2,593,100	2,487,000	2,484,400	2,274,900
ROA		14.30%	5.99%	4.13%	4.73%	5.78%

June 30, 2025 calculation

ROA = Net income ÷ Total assets
= $383,100K ÷ $2,678,600K
= 14.30%

The return on assets (ROA) for Brinker International Inc exhibits notable fluctuations over the specified period. As of June 30, 2021, the ROA stood at 5.78%, indicating a moderate efficiency in generating profit from its total assets. By June 30, 2022, the ROA decreased to 4.73%, reflecting a decline in asset profitability and possibly pointing to increased asset base or reduced earnings during that fiscal year. The decline continued in June 30, 2023, reaching 4.13%, suggesting a persistent downward trend in asset efficiency over this two-year span.

However, a significant positive shift is observable in the subsequent period. By June 30, 2024, the ROA increased markedly to 5.99%, indicating an improvement in asset utilization and profitability. This upward trend accelerates dramatically by June 30, 2025, with the ROA soaring to 14.30%. Such a substantial increase signifies a considerable enhancement in the company's ability to generate earnings from its assets, potentially attributable to operational improvements, asset management, or strategic initiatives that bolstered profitability relative to the asset base.

Overall, the analysis reveals a period of decline in asset efficiency during the early to mid-2020s, followed by a robust recovery and significant improvement by mid-2025. The recent surge in ROA suggests an improved financial performance and more efficient use of assets, although the context of broader economic conditions, company-specific strategies, and industry dynamics would further elucidate the underlying factors influencing these variations.