Simply Good Foods Co (SMPL)

Return on assets (ROA)

		Aug 31, 2024	May 25, 2024	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
Net income (ttm)	US$ in thousands	139,309	146,660	140,757	133,276	133,575	127,060	130,463	123,282	108,574	96,693	63,754	19,079	40,880	-16,656	25,561	100,076	65,638	62,697	20,444	-15,135
Total assets	US$ in thousands	2,436,140	2,185,630	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
ROA		5.72%	6.71%	6.55%	6.30%	6.37%	6.11%	6.25%	5.89%	5.18%	4.57%	3.05%	0.93%	1.99%	-0.82%	1.26%	4.97%	3.27%	3.07%	1.02%	-0.75%

August 31, 2024 calculation

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

The return on assets (ROA) of Simply Good Foods Co has shown some variability over the past few years. The trend indicates that the company's ability to generate profit from its assets has generally been improving since the end of 2020. However, there were some fluctuations in the interim periods.

From November 2020 to August 2021, the ROA was negative or relatively low, indicating the company may have faced challenges in utilizing its assets efficiently to generate profits. However, starting from February 2022, there was a significant upward trend in the ROA, reaching a peak of 6.71% in May 2024.

Overall, the ROA figures demonstrate that Simply Good Foods Co has been effective in improving its profitability in recent periods and utilizing its assets more efficiently to generate returns for its stakeholders. Continued monitoring of this ratio will be important to assess the company's ongoing financial performance and asset utilization efficiency.