Wingstop Inc (WING)

Operating return on assets (Operating ROA)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Operating income (ttm)	US$ in thousands	165,616	153,590	144,424	129,660	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
Total assets	US$ in thousands	716,246	484,762	451,821	412,251	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
Operating ROA		23.12%	31.68%	31.96%	31.45%	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%

December 31, 2024 calculation

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

Operating Return on Assets (Operating ROA) measures a company's ability to generate operating profits from its assets. Looking at the data provided for Wingstop Inc from March 31, 2020, to December 31, 2024, we observe fluctuations in the operating ROA.

The Operating ROA started at 23.66% in March 2020 and experienced a gradual increase, reaching 27.13% by December 2020. The trend continued positively through March 2021, where the Operating ROA peaked at 29.26%. However, the metric dipped slightly in June 2021 to 26.93% and then remained relatively stable around the mid-20s percentage range until June 2022.

From September 2022, there was a notable increase in Operating ROA, reaching a high of 31.75% by September 2023. This upward trend continued to December 2024, where the Operating ROA was still at a solid level of 23.12%.

Overall, Wingstop Inc's Operating ROA demonstrated variation over the period, with fluctuations reflecting changes in the company's ability to generate operating profits in relation to its assets. The company experienced both peaks and troughs in performance, indicating the need for continuous monitoring and evaluation to ensure sustainable profitability.