Freshpet Inc (FRPT)

Return on assets (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
Net income (ttm) US$ in thousands 15,626 46,925 44,093 25,032 9,774 -32,634 -50,079 -60,419 -63,336 -55,762 -62,872 -47,436 -35,042 -29,698 -23,731 -18,114 -10,486 -3,188 4,743 4,263
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
ROA 1.00% 2.98% 2.88% 1.66% 0.66% -2.23% -3.47% -4.28% -4.52% -4.95% -5.39% -4.04% -4.11% -3.79% -3.13% -2.31% -1.35% -0.73% 1.11% 1.04%

March 31, 2025 calculation

ROA = Net income (ttm) ÷ Total assets
= $15,626K ÷ $1,559,020K
= 1.00%

The analysis of Freshpet Inc.'s return on assets (ROA) from June 30, 2020, through March 31, 2025, reveals significant fluctuations over the period. Initially, in mid-2020, the company reported a positive ROA of 1.04% in June and slightly improving to 1.11% by September, indicative of modest profitability relative to total assets. However, starting from December 31, 2020, the ROA transitioned into negative territory, registering at -0.73%, and continued to decline noticeably through early 2021, reaching -1.35% at the end of March 2021. The downward trend persisted into mid-2021 and into 2022, with ROA values worsening to -2.31% (June 2021), -3.13% (September 2021), and reaching -3.79% (December 2021). The negative trend persisted throughout 2022, with ROA values such as -4.11% (March 2022), -4.04% (June 2022), -5.39% (September 2022), and -4.95% (December 2022). In 2023, the negative ROA modestly improved but remained below zero, with -4.52%, -4.28%, and -3.47% recorded for March, June, and September, respectively; the figure for December 2023 was -2.23%.

Notably, starting in the first quarter of 2024, there was a positive shift in ROA, moving into profitability with values of 0.66% (March 2024) and further improving to 1.66% (June 2024). This recovery continued through September and December 2024, with ROA reaching 2.88% and 2.98%, respectively. By March 2025, the ROA declined slightly but remained positive at 1.00%.

Overall, the company's ROA demonstrated a period of sustained losses from late 2020 through early 2023, indicating challenges in generating profit from its assets during that period. The turnaround beginning in early 2024 signifies a meaningful improvement in asset efficiency and profitability, possibly attributable to strategic operational adjustments, revenue growth, or cost management initiatives. Nonetheless, the historical volatility underscores ongoing uncertainties and the importance of monitoring future performance trends for sustained profitability.