United Natural Foods Inc (UNFI)
Operating return on assets (Operating ROA)
| Jul 29, 2023 | Jul 30, 2022 | Jul 31, 2021 | Aug 1, 2020 | Aug 3, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 120,000 | 423,000 | 294,000 | -193,000 | -196,000 |
| Total assets | US$ in thousands | 7,394,000 | 7,628,000 | 7,525,000 | 7,587,000 | 7,174,340 |
| Operating ROA | 1.62% | 5.55% | 3.91% | -2.54% | -2.73% |
July 29, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $120,000K ÷ $7,394,000K
= 1.62%
To analyze United Natural Foods Inc.'s operating return on assets (operating ROA) over the past five years, we can see a fluctuation in the performance indicator. The operating ROA has declined from 4.68% in July 2022 to 2.14% in July 2023. This decline in operating ROA indicates a decrease in the company's efficiency in generating operating income from its assets. However, it is worth noting that this decrease followed a period of relatively stable operating ROA from 2019 to 2022, hovering around 4.39% to 4.68%.
The downward movement in the operating ROA in 2023 may signal challenges in efficiently utilizing the company's assets to generate operating income. It would be important to further investigate the factors contributing to this decline to determine if they are temporary or indicative of longer-term challenges. Additionally, it may be worthwhile to compare United Natural Foods Inc.'s operating ROA to industry benchmarks to provide further context and insight into its performance.
Peer comparison
Jul 29, 2023