Floor & Decor Holdings Inc (FND)
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 | 321,428 | 396,760 | 338,992 | 214,579 | 159,181 |
| Total assets | US$ in thousands | 4,662,550 | 4,351,240 | 3,730,700 | 2,880,420 | 2,324,310 |
| Operating ROA | 6.89% | 9.12% | 9.09% | 7.45% | 6.85% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $321,428K ÷ $4,662,550K
= 6.89%
Over the five-year period from 2019 to 2023, Floor & Decor Holdings Inc's operating return on assets (operating ROA) has fluctuated. The operating ROA was highest in 2022 at 9.12%, indicating the company generated $0.091 in operating income for every $1 of assets employed in that year. However, in 2023, the operating ROA decreased to 6.89%, suggesting a reduction in the company's efficiency in utilizing its assets to generate operating profit.
The average operating ROA over the five-year period was 7.68%, indicating that, on average, the company generated $0.077 of operating income for every $1 of assets during this time. This metric helps assess how well the company is utilizing its assets to generate operating profits. A higher operating ROA is generally preferred as it signifies better asset utilization and operational efficiency.
Investors and stakeholders should keep an eye on Floor & Decor Holdings Inc's operating ROA to monitor its ability to generate profits relative to its asset base and to ensure sustainable operational performance and efficiency.
Peer comparison
Dec 31, 2023