Wingstop Inc (WING)

Operating return on assets (Operating ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	165,616	112,594	91,933	73,756	57,390
Total assets	US$ in thousands	716,246	377,825	424,190	249,203	211,565
Operating ROA		23.12%	29.80%	21.67%	29.60%	27.13%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $165,616K ÷ $716,246K
= 23.12%

Operating Return on Assets (Operating ROA) is a key financial ratio that indicates how effectively a company is generating operating income relative to its total assets. Looking at the data provided for Wingstop Inc, we observe fluctuating trends in its Operating ROA over the past five years.

- As of December 31, 2020, Wingstop Inc's Operating ROA stood at 27.13%, reflecting a strong performance in utilizing its assets to generate operating income.
- By the end of 2021, Wingstop Inc further improved its operational efficiency, with the Operating ROA increasing to 29.60%, signaling a positive trend.
- However, in 2022, there was a decrease in Wingstop Inc's Operating ROA to 21.67%, indicating a potential decline in the company's ability to generate operating income relative to its asset base.
- The following year, Wingstop Inc managed to rebound with an Operating ROA of 29.80% by December 31, 2023, showing improved efficiency in asset utilization.
- Despite this recovery, as of December 31, 2024, Wingstop Inc experienced a decrease in its Operating ROA to 23.12%, suggesting a potential challenge in maintaining consistent operational performance.

In conclusion, Wingstop Inc's Operating ROA has displayed variability in recent years, indicating fluctuations in the company's operational efficiency and asset utilization. Monitoring this ratio over time can provide insights into Wingstop Inc's ability to effectively generate operating income in relation to its asset base.