US Foods Holding Corp (USFD)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,017,000 | 594,000 | 424,000 | -77,000 | 699,000 |
| Total assets | US$ in thousands | 13,187,000 | 12,773,000 | 12,521,000 | 12,423,000 | 11,288,000 |
| Operating ROA | 7.71% | 4.65% | 3.39% | -0.62% | 6.19% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $1,017,000K ÷ $13,187,000K
= 7.71%
US Foods Holding Corp's operating return on assets (operating ROA) has shown fluctuations over the past five years. In 2023, the operating ROA increased to 7.71%, indicating that the company generated $0.0771 in operating income for every dollar of assets. This represents an improvement from the previous year's 4.65%. The significant increase in operating ROA suggests that US Foods Holding Corp was able to more efficiently utilize its assets to generate operating profits.
Compared to 2021 when the operating ROA was 3.39%, the company's profitability and asset utilization have improved further. However, in 2020, US Foods Holding Corp experienced a negative operating ROA of -0.62%, which indicates that the company incurred operating losses relative to its assets in that year.
In 2019, the operating ROA was 6.19%, higher than in 2023 but lower than in 2020. Overall, the trend in operating ROA shows variability, with improvements in recent years compared to the negative performance in 2020. It is crucial for the company to sustain or further enhance this trend to demonstrate efficient asset management and sustainable profitability.
Peer comparison
Dec 31, 2023