Freshpet Inc (FRPT)

Operating return on assets (Operating ROA)

Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020
Operating income (ttm) US$ in thousands 18,175 38,264 33,867 14,880 -258 -30,361 -46,189 -55,015 -56,398 -50,765 -57,555 -42,491 -30,822 -24,662 -20,127 -15,527 -8,830 -1,998 5,981 5,756
Total assets US$ in thousands 1,559,020 1,574,880 1,531,700 1,506,330 1,480,590 1,464,420 1,444,330 1,410,370 1,400,020 1,125,380 1,165,500 1,173,510 853,460 784,410 758,327 783,430 773,972 434,388 425,942 411,860
Operating ROA 1.17% 2.43% 2.21% 0.99% -0.02% -2.07% -3.20% -3.90% -4.03% -4.51% -4.94% -3.62% -3.61% -3.14% -2.65% -1.98% -1.14% -0.46% 1.40% 1.40%

March 31, 2025 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $18,175K ÷ $1,559,020K
= 1.17%

The operating return on assets (ROA) of Freshpet Inc. exhibits a significant transition from negative territory towards positive figures over the specified period. Initially, as of June 30, 2020, the operating ROA was recorded at 1.40%, indicating a modest level of operating efficiency. This figure remained stable through September 30, 2020. However, subsequent quarters reveal a persistent decline into negative territory, with the operating ROA reaching -0.46% by December 31, 2020, and continuing to decline to -1.14% by March 31, 2021.

Throughout 2021 and into 2022, the operating ROA worsened progressively, peaking at -4.94% on September 30, 2022. During this period, the declining trend suggests increasing operating inefficiencies or challenges in generating returns relative to assets. Although the negative trend plateaued somewhat toward the end of 2022 and the beginning of 2023, the metric remained substantially negative at around -3.90% to -4.51%.

Starting in the second quarter of 2023, a gradual recovery is observed. The operating ROA improves from -3.90% on June 30, 2023, to -3.20% on September 30, 2023, and continues upward to -2.07% by December 31, 2023. The positive momentum persists into 2024, with the figure reaching -0.02% on March 31, 2024, effectively approaching zero. By June 30, 2024, the operating ROA turns positive at 0.99%, and it further ascends to 2.21% on September 30, 2024, and 2.43% on December 31, 2024. The trend continues into early 2025, with the operating ROA slightly declining to 1.17% on March 31, 2025.

Overall, the data indicates that Freshpet Inc. experienced a prolonged period of negative operating ROA, reflecting operational challenges or inefficiencies. However, recent quarters demonstrate a substantial recovery, with the metric moving into positive territory, suggesting improved operational performance and better utilization of assets. This upward trajectory marks a notable development from a historically negative operating ROA to a positive, albeit modest, level as of the latest reported period.