Wingstop Inc (WING)

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	112,594	91,933	73,756	57,390	42,901
Total assets	US$ in thousands	377,825	424,190	249,203	211,565	166,113
Operating ROA		29.80%	21.67%	29.60%	27.13%	25.83%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $112,594K ÷ $377,825K
= 29.80%

The operating return on assets (operating ROA) for Wingstop Inc has shown a fluctuating trend over the past five years. In 2023, the operating ROA stood at 29.80%, marking an increase from the previous year's 21.67%. This significant improvement indicates enhanced operational efficiency and profitability in utilizing the company's assets to generate earnings from its core business activities.

Comparing to 2021 and 2020, Wingstop Inc's operating ROA has displayed a positive trajectory, showcasing consistent growth in profitability relative to its asset base. Moreover, in 2019, the company achieved an operating ROA of 25.83%, indicating a strong operational performance in utilizing its assets effectively to generate income.

Overall, the increasing trend in Wingstop Inc's operating ROA reflects the company's ability to generate higher returns from its operational assets, showcasing improved efficiency and profitability in its core business operations over the years.