Grocery Outlet Holding Corp (GO)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 78,327 | 125,782 | 94,990 | 89,095 | 107,375 |
| Total assets | US$ in thousands | 3,173,820 | 2,969,590 | 2,772,400 | 2,669,810 | 2,485,620 |
| Operating ROA | 2.47% | 4.24% | 3.43% | 3.34% | 4.32% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $78,327K ÷ $3,173,820K
= 2.47%
Operating ROA is a key financial metric that indicates the efficiency of Grocery Outlet Holding Corp in generating operating profits relative to its total assets.
From the data provided, we observe the following trend in Grocery Outlet's operating ROA:
- As of December 31, 2020, the operating ROA stood at 4.32%, indicating that the company generated operating income equivalent to 4.32% of its total assets.
- Over the subsequent years, the operating ROA showed a slight decline to 3.34% as of December 31, 2021, and further dropped to 3.43% as of December 31, 2022.
- However, there was a notable improvement in the operating ROA to 4.24% as of December 31, 2023, reflecting a better utilization of assets to generate operating profits.
- The operating ROA then experienced a significant decrease to 2.47% as of December 31, 2024, indicating a decline in the efficiency of operations in relation to the total asset base.
Overall, the fluctuation in operating ROA over the years suggests a varying degree of effectiveness in utilizing assets to generate operating profits. It would be important for Grocery Outlet Holding Corp to closely monitor this metric and implement strategies to enhance operational efficiency and profitability in the future.
Peer comparison
Dec 31, 2024