Freshpet Inc (FRPT)

Return on assets (ROA)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income US$ in thousands 46,925 -33,614 -55,763 -27,694 -3,188
Total assets US$ in thousands 1,574,880 1,464,420 1,125,380 784,410 434,388
ROA 2.98% -2.30% -4.96% -3.53% -0.73%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $46,925K ÷ $1,574,880K
= 2.98%

The return on assets (ROA) for Freshpet Inc. over the specified period demonstrates a notable fluctuation with an overall trend toward improvement by the end of 2024. As of December 31, 2020, the ROA was recorded at -0.73%, indicating that the company's net income was slightly negative relative to its total assets. This negative figure persisted and worsened considerably through 2021 and 2022, with ROA values of -3.53% and -4.96% respectively, reflecting increased inefficiency in generating profit from the company's asset base during this period.

However, there is a marked turnaround beginning in 2023, as the ROA improves to -2.30%, signaling a reduction in the negative return and an easing of losses relative to assets. The most significant development occurs in 2024 when the ROA turns positive, reaching 2.98%. This transition from negative to positive ROA suggests a fundamental improvement in the company's ability to generate net income from its assets, potentially stemming from operational enhancements, revenue growth, cost management, or other strategic initiatives.

Overall, the trajectory of Freshpet Inc.'s ROA indicates a pattern of initial decline followed by a substantial recovery, culminating in profitability being realized on its asset base by the end of 2024. This shift may reflect an improving business environment or company-specific operational efficiencies that have begun to positively impact net income relative to total assets.