Simply Good Foods Co (SMPL)

Return on assets (ROA)

		Aug 31, 2024	Aug 26, 2023	Aug 27, 2022	Aug 28, 2021	Aug 29, 2020
Net income	US$ in thousands	139,309	133,575	108,574	40,880	65,638
Total assets	US$ in thousands	2,436,140	2,097,080	2,094,250	2,052,220	2,008,440
ROA		5.72%	6.37%	5.18%	1.99%	3.27%

August 31, 2024 calculation

ROA = Net income ÷ Total assets
= $139,309K ÷ $2,436,140K
= 5.72%

The return on assets (ROA) of Simply Good Foods Co has shown fluctuations over the past five years. In the most recent fiscal year ending on August 31, 2024, the ROA stood at 5.72%, which indicates that the company generated $0.0572 in profit for every dollar of assets it possesses.

Comparing this to the previous years, there was a decrease from 6.37% in 2023 to 5.72% in 2024. This decline suggests a potential decrease in the company's efficiency in generating profit from its assets year over year.

However, when looking at the trend over the five-year period, the ROA has generally been on an upward trajectory, with fluctuations in between. The lowest ROA was in 2021 at 1.99%, and the highest was in 2023 at 6.37%.

It is important to further investigate the factors contributing to the fluctuation in ROA to fully understand the company's financial performance and efficiency in utilizing its assets to generate profits.