Six Flags Entertainment Corporation (FUN)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 346,518 | 378,575 | 148,335 | -459,885 | 309,439 |
| Total assets | US$ in thousands | 2,282,460 | 2,235,900 | 2,313,020 | 2,693,410 | 2,581,140 |
| Operating ROA | 15.18% | 16.93% | 6.41% | -17.07% | 11.99% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $346,518K ÷ $2,282,460K
= 15.18%
Operating ROA measures the efficiency with which Six Flags Entertainment Corporation generates operating income from its total assets. A higher operating ROA indicates better utilization of assets to generate operating profits.
In 2023, the operating ROA of Six Flags was 15.18%, showing a decrease from the previous year's 16.93%. Despite the decrease, the company continued to generate positive returns on its assets, signifying effective asset management.
Compared to 2021, where the operating ROA was 6.41%, the performance improved significantly in 2022 and 2023, indicating better operational efficiency and profitability.
In 2020, Six Flags had a negative operating ROA of -17.07%, indicating operating losses relative to the total assets employed. This could be a result of challenges faced by the company during that period, such as the impact of the global pandemic on its operations.
Overall, the trend in operating ROA for Six Flags has shown fluctuations over the years, with both positive and negative values. It is essential for the company to focus on maintaining or increasing its operating ROA to ensure efficient asset utilization and sustainable profitability in the long run.
Peer comparison
Dec 31, 2023