Mister Car Wash, Inc. Common Stock (MCW)
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 | 178,932 | 178,145 | 187,719 | -27,698 | 105,210 |
| Total assets | US$ in thousands | 3,101,800 | 2,881,540 | 2,686,230 | 2,448,100 | 1,948,450 |
| Operating ROA | 5.77% | 6.18% | 6.99% | -1.13% | 5.40% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $178,932K ÷ $3,101,800K
= 5.77%
Mister Car Wash, Inc.'s operating return on assets (ROA) provides valuable insights into the company's ability to generate profits from its assets. The operating ROA for the company fluctuated over the five-year period under review.
As of December 31, 2020, the operating ROA stood at 5.40%, indicating that the company generated 5.40 cents of operating income for every dollar of assets it owned. This suggested efficient asset utilization and profitability in that year.
However, there was a noticeable decline in operating ROA by December 31, 2021, where it dropped to -1.13%. A negative ROA implies that the company may have incurred operating losses relative to its asset base during that year, which could be a cause for concern.
The following year, by December 31, 2022, Mister Car Wash, Inc. managed to improve its operating ROA significantly to 6.99%, signaling a strong rebound in profitability and effective asset management.
Subsequently, by December 31, 2023, the operating ROA slightly decreased to 6.18%, indicating a minor but sustainable dip in the company's ability to generate operating income from its assets.
Finally, by December 31, 2024, the operating ROA stood at 5.77%, showing consistency in the company's operational efficiency in utilizing its assets to generate returns.
In conclusion, Mister Car Wash, Inc.'s operating ROA fluctuated over the five-year period, with a mix of positive and negative trends. Sustainability and continuous improvement in operating ROA will be vital for the company to ensure profitability and efficient use of its asset base in the future.
Peer comparison
Dec 31, 2024