Floor & Decor Holdings Inc (FND)
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 | 256,176 | 321,428 | 396,760 | 338,992 | 214,579 |
| Total assets | US$ in thousands | 5,050,480 | 4,662,550 | 4,351,240 | 3,730,700 | 2,880,420 |
| Operating ROA | 5.07% | 6.89% | 9.12% | 9.09% | 7.45% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $256,176K ÷ $5,050,480K
= 5.07%
Floor & Decor Holdings Inc's operating return on assets (Operating ROA) has shown a fluctuating trend over the years based on the provided data. In 2020, the company's operating ROA stood at 7.45%, demonstrating the effectiveness of utilizing its assets to generate operating income.
There was a subsequent improvement in 2021, with the operating ROA increasing to 9.09%, indicating enhanced operational efficiency and profitability. This positive momentum was sustained in 2022, as the operating ROA further improved to 9.12%.
However, the trend reversed in 2023, with the operating ROA declining to 6.89%. This decrease suggests a potential decrease in the company's ability to generate operating income relative to its asset base.
The downward trend continued in 2024, with the operating ROA dropping to 5.07%. This further decline may point towards challenges in effectively utilizing assets to generate operating profits.
Overall, while there have been fluctuations in Floor & Decor Holdings Inc's operating ROA over the years, it is essential for the company to focus on improving operational efficiency and asset utilization to sustain and enhance its profitability in the future.
Peer comparison
Dec 31, 2024