Flowers Foods Inc (FLO)
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 | 348,292 | 172,870 | 303,215 | 294,920 | 321,488 |
| Total assets | US$ in thousands | 3,400,450 | 3,426,950 | 3,312,990 | 3,253,310 | 3,323,020 |
| Operating ROA | 10.24% | 5.04% | 9.15% | 9.07% | 9.67% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $348,292K ÷ $3,400,450K
= 10.24%
Operating Return on Assets (Operating ROA) is a key financial metric that measures a company's ability to generate profits from its operating activities relative to its total assets.
From the data provided, we can see the trend in Flowers Foods Inc's Operating ROA over the years:
- As of December 31, 2020, the Operating ROA was 9.67%. This indicates that the company generated approximately $0.0967 in operating income for every $1 of assets it had.
- By December 31, 2021, the Operating ROA decreased slightly to 9.07%, suggesting a slight decline in the company's profitability relative to its assets.
- The trend continued in 2022, with the Operating ROA standing at 9.15%, showing a marginal improvement compared to the previous year.
- However, a significant drop was observed by December 31, 2023, when the Operating ROA fell to 5.04%. This decline may indicate challenges in maximizing profits from the company's asset base.
- The latest available data as of December 31, 2024, shows a notable increase in Operating ROA to 10.24%, demonstrating a strong rebound in profitability relative to assets.
Overall, the fluctuation in Flowers Foods Inc's Operating ROA over the years reflects varying levels of efficiency in utilizing its assets to generate operating income. It is important for the company to focus on sustaining or improving this metric to ensure long-term profitability and operational effectiveness.
Peer comparison
Dec 31, 2024