Floor & Decor Holdings Inc (FND)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 205,872 | 245,980 | 298,195 | 283,230 | 194,981 |
| Total assets | US$ in thousands | 5,050,480 | 4,662,550 | 4,351,240 | 3,730,700 | 2,880,420 |
| ROA | 4.08% | 5.28% | 6.85% | 7.59% | 6.77% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $205,872K ÷ $5,050,480K
= 4.08%
Floor & Decor Holdings Inc's return on assets (ROA) has displayed a fluctuating trend over the past five years. Starting at 6.77% on December 31, 2020, the ROA increased to 7.59% by December 31, 2021, reflecting improved asset utilization and profitability. However, in the following years, the ROA experienced a decline, dropping to 6.85% by December 31, 2022, 5.28% by December 31, 2023, and reaching 4.08% by December 31, 2024.
The decreasing ROA may indicate challenges in generating profit relative to the company's asset base. It suggests that Floor & Decor Holdings Inc may be facing efficiency issues in managing its assets to generate earnings. Management should closely monitor this trend and assess strategies to improve asset utilization and profitability in order to enhance overall financial performance.
Peer comparison
Dec 31, 2024