Simply Good Foods Co (SMPL)

Operating return on assets (Operating ROA)

		Feb 24, 2024	Nov 25, 2023	Aug 26, 2023	May 27, 2023	Feb 25, 2023	Nov 26, 2022	Aug 27, 2022	May 28, 2022	Feb 26, 2022	Nov 27, 2021	Aug 28, 2021	May 29, 2021	Feb 27, 2021	Nov 28, 2020	Aug 29, 2020	May 30, 2020	Feb 29, 2020	Nov 30, 2019	Aug 31, 2019	May 25, 2019
Operating income (ttm)	US$ in thousands	209,857	204,279	204,949	192,726	193,797	197,243	202,759	200,058	205,104	192,494	173,675	157,682	128,468	120,396	78,224	65,507	54,909	48,642	72,809	75,553
Total assets	US$ in thousands	2,147,570	2,115,060	2,097,080	2,080,000	2,088,680	2,093,060	2,094,250	2,114,660	2,087,900	2,043,340	2,052,220	2,039,120	2,021,520	2,015,220	2,008,440	2,040,140	2,001,350	2,016,060	1,141,650	1,124,610
Operating ROA		9.77%	9.66%	9.77%	9.27%	9.28%	9.42%	9.68%	9.46%	9.82%	9.42%	8.46%	7.73%	6.36%	5.97%	3.89%	3.21%	2.74%	2.41%	6.38%	6.72%

February 24, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $209,857K ÷ $2,147,570K
= 9.77%

The operating return on assets (ROA) for Simply Good Foods Co has shown a fluctuating trend over the past year, ranging from a low of 2.41% in May 2019 to a high of 9.82% in February 2022. In the most recent period ending on February 24, 2024, the operating ROA stood at 9.77%.

The consistent positive values of the operating ROA indicate that Simply Good Foods Co has been effectively generating operating income relative to its total assets. This means that the company is utilizing its assets efficiently to generate profits from its core business operations.

The upward trend in operating ROA from the low point in May 2019 to the recent high in February 2022 suggests an improvement in the company's operational efficiency and profitability. However, there was a slight decline in the operating ROA in the latest period compared to the previous quarter, which could indicate a potential slowdown in operational performance.

Overall, the operating ROA of Simply Good Foods Co indicates that the company has been effectively managing its assets to generate operating income, although there may be fluctuations in performance over time that should be closely monitored for any potential impact on overall profitability and efficiency.