Floor & Decor Holdings Inc (FND)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 245,980 | 298,195 | 283,230 | 194,981 | 150,631 |
| Total assets | US$ in thousands | 4,662,550 | 4,351,240 | 3,730,700 | 2,880,420 | 2,324,310 |
| ROA | 5.28% | 6.85% | 7.59% | 6.77% | 6.48% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $245,980K ÷ $4,662,550K
= 5.28%
Floor & Decor Holdings Inc's return on assets (ROA) has exhibited some fluctuations over the past five years. The ROA decreased from 6.48% in 2019 to 6.77% in 2020 before declining further to 7.59% in 2021. However, there was a slight improvement in ROA to 6.85% in 2022, followed by a decrease to 5.28% in 2023.
The declining trend in ROA over the past two years could indicate potential inefficiencies in asset utilization or declining profitability relative to the size of the company's asset base. This trend may warrant further investigation into the company's operational efficiency, asset management strategies, or overall profitability.
It is essential for investors and stakeholders to monitor Floor & Decor Holdings Inc's ROA closely to assess how effectively the company is generating profits from its assets. Comparing ROA with industry averages or competitors' performance can provide additional insights into Floor & Decor's standing within the marketplace and its overall financial health.
Peer comparison
Dec 31, 2023