Mister Car Wash Inc (MCW)
Return on assets (ROA)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 80,130 | 85,509 | 90,021 | 98,548 | 112,900 | 131,449 | 134,818 | -11,141 | |||
| Total assets | US$ in thousands | 2,881,540 | 2,859,670 | 2,830,560 | 2,717,340 | 2,686,230 | 2,631,490 | 2,560,960 | 2,502,880 | 2,448,100 | 2,079,570 | 2,043,530 |
| ROA | 2.78% | 2.99% | 3.18% | 3.63% | 4.20% | 5.00% | 5.26% | -0.45% |
December 31, 2023 calculation
ROA = Net income (ttm) ÷ Total assets
= $80,130K ÷ $2,881,540K
= 2.78%
Mister Car Wash Inc's return on assets (ROA) has shown a declining trend over the past five quarters, starting at 4.20% in Q4 2022 and decreasing to 2.78% in Q4 2023. This indicates that the company's ability to generate profits from its assets has been decreasing.
The declining ROA may be a cause for concern as it suggests that the company's efficiency in utilizing its assets to generate earnings has been diminishing. Management should closely examine the reasons behind this trend and take necessary steps to improve asset utilization in order to enhance profitability and shareholder value.
Peer comparison
Dec 31, 2023