Papa John's International Inc (PZZA)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	147,142	109,030	168,241	90,253	24,535
Total assets	US$ in thousands	875,005	864,227	885,704	872,770	730,721
Operating ROA		16.82%	12.62%	19.00%	10.34%	3.36%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $147,142K ÷ $875,005K
= 16.82%

The operating return on assets (ROA) for Papa John's International, Inc. has shown an increasing trend over the last five years. The company's operating ROA was 16.82% at the end of 2023, which is higher than the previous year's 14.01%. This indicates that the company generated $0.1682 in operating income for every $1 of assets in 2023, compared to $0.1401 in 2022.

Looking further back, in 2021, Papa John's operating ROA was at its highest point at 19.00%, reflecting strong operational performance relative to its asset base. The operating ROA then decreased to 10.34% in 2020 but has since shown a significant improvement. In 2019, the operating ROA was only 2.71%, indicating a substantial enhancement in the company's efficiency in converting assets into operating income.

Overall, the increasing trend in operating ROA for Papa John's International, Inc. suggests that the company has been more effective in utilizing its assets to generate operating income in recent years, which is a positive indicator of operational efficiency and profitability.