National Vision Holdings Inc (EYE)
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 | -46,826 | 61,275 | 174,937 | 87,007 | 73,575 |
| Total assets | US$ in thousands | 2,172,510 | 2,291,250 | 2,293,090 | 2,333,500 | 2,032,720 |
| Operating ROA | -2.16% | 2.67% | 7.63% | 3.73% | 3.62% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $-46,826K ÷ $2,172,510K
= -2.16%
National Vision Holdings Inc's operating return on assets (ROA) has exhibited variability over the past five years. The operating ROA decreased significantly from 7.63% in 2021 to 2.67% in 2022, indicating a substantial decline in the company's operating efficiency and profitability. This negative trend continued in 2023, with an even lower operating ROA of -2.16%, reflecting operational challenges or inefficiencies that adversely impacted the company's ability to generate profits from its assets.
Comparing the recent operating ROA figures to historical data, it is evident that National Vision Holdings Inc's performance in utilizing its assets to generate operating income has been inconsistent. While the operating ROA was relatively stable around the 3-4% range in 2019 and 2020, the subsequent years saw more pronounced fluctuations, with peaks and troughs in performance.
The downward trend in operating ROA from 2021 to 2023 suggests that the company may be facing operational issues that are affecting its profitability. Management may need to assess and address these challenges to improve operational efficiency and enhance the return on assets. Investors and stakeholders should closely monitor future financial performance to evaluate whether the company can reverse this decline in operating ROA and sustainably improve its profitability.
Peer comparison
Dec 31, 2023