Grocery Outlet Holding Corp (GO)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 39,465 | 79,437 | 65,052 | 62,310 | 106,713 |
| Total assets | US$ in thousands | 3,173,820 | 2,969,590 | 2,772,400 | 2,669,810 | 2,485,620 |
| ROA | 1.24% | 2.68% | 2.35% | 2.33% | 4.29% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $39,465K ÷ $3,173,820K
= 1.24%
The return on assets (ROA) for Grocery Outlet Holding Corp has shown a declining trend over the past five years. Beginning at 4.29% on December 31, 2020, the ROA decreased to 2.33% by December 31, 2021, and remained relatively stable around 2.3% in the subsequent years. However, there was a slight improvement in ROA to 2.68% on December 31, 2023, before dropping significantly to 1.24% by December 31, 2024.
This declining trend in ROA indicates that the company's ability to generate profits from its assets has decreased over time. It suggests that Grocery Outlet Holding Corp may be facing challenges in efficiently utilizing its assets to generate earnings, which could be attributed to factors such as increasing costs, lower sales growth, or inefficiencies in operations.
It is essential for the company to closely monitor its asset utilization and profitability to identify and address the underlying issues affecting its ROA in order to improve overall financial performance and enhance shareholder value.
Peer comparison
Dec 31, 2024