Simply Good Foods Co (SMPL)

Operating return on assets (Operating ROA)

		Aug 31, 2024	Aug 26, 2023	Aug 27, 2022	Aug 28, 2021	Aug 29, 2020
Operating income	US$ in thousands	206,497	204,949	202,759	173,675	78,224
Total assets	US$ in thousands	2,436,140	2,097,080	2,094,250	2,052,220	2,008,440
Operating ROA		8.48%	9.77%	9.68%	8.46%	3.89%

August 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $206,497K ÷ $2,436,140K
= 8.48%

Operating Return on Assets (Operating ROA) is a key financial ratio that indicates the efficiency of Simply Good Foods Co in generating operating income relative to its total assets.

Over the past five years, Simply Good Foods Co's Operating ROA has exhibited a fluctuating trend. In the most recent fiscal year ending on Aug 31, 2024, the company's Operating ROA was 8.48%, showing a decrease from the previous year but still remained at a relatively healthy level.

Comparing the Operating ROA to the data from the prior four years, we see that Simply Good Foods Co achieved its highest Operating ROA in Aug 26, 2023, at 9.77%. This was followed by a slight decline in the subsequent year but still maintained above 9%.

In general, the company has shown a consistent ability to generate operating income relative to its total assets, with the ratio ranging from 3.89% in Aug 29, 2020, to 9.77% in Aug 26, 2023. Although there have been fluctuations in the ratio over the years, the overall trend indicates that Simply Good Foods Co has been effectively utilizing its assets to generate operating income, with some variability in performance.

It is important for the company to continue monitoring and analyzing its Operating ROA to ensure efficient asset utilization and sustained profitability in the future.