Flowers Foods Inc (FLO)
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 | 172,870 | 303,215 | 294,920 | 321,488 | 225,428 |
| Total assets | US$ in thousands | 3,426,950 | 3,312,990 | 3,253,310 | 3,323,020 | 3,177,780 |
| Operating ROA | 5.04% | 9.15% | 9.07% | 9.67% | 7.09% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $172,870K ÷ $3,426,950K
= 5.04%
Operating return on assets (operating ROA) measures the efficiency of Flowers Foods Inc in generating operating income relative to its total assets. From 2019 to 2023, Flowers Foods Inc's operating ROA has fluctuated. In 2019, the operating ROA was 7.09%, which increased to 9.67% in 2020, but then decreased to 9.07% in 2021. However, there was a significant decrease in 2022 to 9.15% and a further decline to 5.04% in 2023.
Fluctuations in operating ROA can be indicative of changes in profitability and asset utilization. A decreasing trend in operating ROA may suggest inefficiencies in operations or lower profitability generated from assets. Flowers Foods Inc may need to investigate the factors contributing to the decline in operating ROA to improve its operational efficiency and overall performance.
Peer comparison
Dec 31, 2023