Jack In The Box Inc (JACK)

Return on assets (ROA)

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Net income	US$ in thousands	-36,695	130,826	115,781	165,755	89,764
Total assets	US$ in thousands	2,735,630	3,001,090	2,922,510	1,750,140	1,906,490
ROA		-1.34%	4.36%	3.96%	9.47%	4.71%

September 30, 2024 calculation

ROA = Net income ÷ Total assets
= $-36,695K ÷ $2,735,630K
= -1.34%

Jack In The Box Inc's return on assets (ROA) has experienced fluctuation over the past five years. In Sep 30, 2024, the ROA was -1.34%, indicating that for every dollar of assets, the company generated a negative return. This decline from the previous years is concerning as it signifies lower efficiency in utilizing the company's assets to generate profits.

In comparison, the ROA was 4.36% in Sep 30, 2023, representing a decrease from the peak of 9.47% in Sep 30, 2021. The decrease in ROA indicates a decline in profitability relative to the assets employed, which could be due to operational inefficiencies or declining profitability.

Although the company's ROA was relatively stable in Sep 30, 2020 and Sep 30, 2022, the recent decline in ROA in 2024 raises concerns about the company's ability to generate profits from its assets. Management may need to assess and address the factors contributing to the decline in ROA to improve overall financial performance and efficiency.