Wingstop Inc (WING)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Operating income (ttm)	US$ in thousands	112,594	111,651	105,080	100,998	91,933	77,280	74,031	70,560	73,756	69,619	63,088	63,722	57,390	56,203	53,851	44,601	42,901	42,686	41,093	40,732
Total assets	US$ in thousands	377,825	351,676	451,217	451,297	424,190	411,036	395,361	507,296	249,203	260,399	234,264	217,771	211,565	219,691	201,114	188,514	166,113	168,067	150,025	151,450
Operating ROA		29.80%	31.75%	23.29%	22.38%	21.67%	18.80%	18.72%	13.91%	29.60%	26.74%	26.93%	29.26%	27.13%	25.58%	26.78%	23.66%	25.83%	25.40%	27.39%	26.89%

December 31, 2023 calculation

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

Operating return on assets (ROA) is a key financial ratio that measures a company's ability to generate operating profits relative to its total assets. The trend analysis of Wingstop Inc's operating ROA over the past five quarters shows a generally positive performance, with fluctuations observed.

In the most recent quarter, Wingstop Inc's operating ROA stood at 29.80%, indicating that the company generated 29.80 cents of operating income for every dollar of total assets. This represents an improvement from the previous quarter where the operating ROA was 31.75%. Despite the slight decrease, the company maintained a strong operating ROA, reflecting efficient utilization of its assets to generate operating profits.

Looking at the trend over the past five quarters, Wingstop Inc's operating ROA has generally been on an upward trajectory, with occasional fluctuations. The company experienced a notable increase from 21.67% in the fourth quarter of 2022 to 31.75% in the first quarter of 2023, showing improved operational efficiency and profitability during that period.

Overall, the analysis of Wingstop Inc's operating ROA indicates that the company has been effectively managing its assets to generate operating income. However, it is essential to continue monitoring the trend to ensure sustained efficiency in asset utilization and profitability.