Jack In The Box Inc (JACK)

Operating return on assets (Operating ROA)

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Operating income	US$ in thousands	278,753	248,270	289,946	230,584	202,223
Total assets	US$ in thousands	3,001,090	2,922,510	1,750,140	1,906,490	958,483
Operating ROA		9.29%	8.50%	16.57%	12.09%	21.10%

September 30, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $278,753K ÷ $3,001,090K
= 9.29%

The operating return on assets (operating ROA) for Jack In The Box Inc has exhibited fluctuations over the past five years. The trend shows a decline in operating ROA from 21.10% in 2019 to 9.29% in 2023. This suggests that the company's ability to generate operating profits from its assets has diminished over time. The peak was seen in 2021 with an operating ROA of 16.57%, indicating a strong performance that year compared to the surrounding periods.

The decreasing trend in operating ROA could be a signal of operational inefficiencies or changes in the business environment affecting the company's profitability relative to its asset base. Investors and stakeholders may want to further investigate the reasons behind this decline to assess the company's financial health and sustainability of its operations.