Simply Good Foods Co (SMPL)

Return on assets (ROA)

		Aug 26, 2023	Aug 27, 2022	Aug 28, 2021	Aug 29, 2020	Aug 31, 2019
Net income	US$ in thousands	133,575	108,574	40,880	65,638	-25,234
Total assets	US$ in thousands	2,097,080	2,094,250	2,052,220	2,008,440	1,141,650
ROA		6.37%	5.18%	1.99%	3.27%	-2.21%

August 26, 2023 calculation

ROA = Net income ÷ Total assets
= $133,575K ÷ $2,097,080K
= 6.37%

The return on assets (ROA) for Simply Good Foods Co has shown fluctuations over the past five years. In the most recent period (Aug 26, 2023), the ROA increased to 6.37% from 5.18% in the prior year. This improvement indicates that the company is generating a higher level of profit relative to its total assets. However, it's important to note that the ROA was notably higher in Aug 29, 2020, and Aug 31, 2019, at 3.27% and 4.16% respectively, suggesting that the company was more efficient in utilizing its assets in generating profits in those years.

Overall, the trend in ROA reflects fluctuations, signifying variations in the company's ability to generate earnings from its assets. It would be beneficial to further investigate the factors influencing these changes in ROA, such as changes in asset utilization or profitability, to gain a deeper understanding of the company's financial performance.