Papa John's International Inc (PZZA)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	82,098	67,772	120,016	57,932	4,866
Total assets	US$ in thousands	875,005	864,227	885,704	872,770	730,721
ROA		9.38%	7.84%	13.55%	6.64%	0.67%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $82,098K ÷ $875,005K
= 9.38%

Papa John`s International, Inc. has shown fluctuating return on assets (ROA) over the past five years. In 2023, the ROA increased to 9.38%, indicating that the company generated $0.0938 in profit for every $1 of assets. This marks an improvement from the previous year when the ROA was 7.79%, suggesting an enhancement in the company's efficiency in utilizing its assets to generate profit.

The significant improvement in ROA in 2023 can be attributed to better management of assets and operations, leading to increased profitability. It indicates that the company is becoming more effective in generating profits relative to its asset base.

Comparing the recent performance to earlier years, the ROA was notably lower in 2021 and 2019, at 0.46% and -1.04%, respectively. This suggests that the company faced challenges in generating profits from its assets in those years, potentially due to operational inefficiencies, economic conditions, or other factors.

Overall, the increasing trend in ROA from 2019 to 2023 reflects a positive trajectory for Papa John`s International, Inc., indicating improved profitability and better asset management over the years. However, it is essential for the company to sustain and further enhance its ROA in the future to ensure long-term financial health and efficiency.