Grocery Outlet Holding Corp (GO)
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 | 125,782 | 94,990 | 89,095 | 107,375 | 68,343 |
| Total assets | US$ in thousands | 2,969,590 | 2,772,400 | 2,669,810 | 2,485,620 | 2,185,530 |
| Operating ROA | 4.24% | 3.43% | 3.34% | 4.32% | 3.13% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $125,782K ÷ $2,969,590K
= 4.24%
Operating return on assets (ROA) is a key profitability ratio that measures how efficiently a company is generating operating income relative to its total assets.
Grocery Outlet Holding Corp's operating ROA has shown some fluctuation over the past five years. In 2023, the operating ROA improved to 4.24%, up from 3.43% in 2022. This indicates that the company was able to generate more operating income per dollar of assets compared to the previous year.
Looking back further, the operating ROA was relatively stable around the low-mid 3% range in 2021 and 2020, with a peak at 4.32% in 2020. The operating ROA significantly improved from 2019 to 2020, suggesting that the company made effective use of its assets to boost operating profitability during that year.
In general, an upward trend in operating ROA reflects effective asset utilization and operational efficiency, whereas a declining trend could signal potential operational challenges or inefficient asset management. It will be important to monitor future trends in operating ROA to assess the company's operational performance and profitability.
Peer comparison
Dec 31, 2023