Wingstop Inc (WING)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	70,175	52,947	42,658	23,306	20,476
Total assets	US$ in thousands	377,825	424,190	249,203	211,565	166,113
ROA		18.57%	12.48%	17.12%	11.02%	12.33%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $70,175K ÷ $377,825K
= 18.57%

The return on assets (ROA) of Wingstop Inc has shown fluctuation over the past five years. In 2023, Wingstop Inc achieved an ROA of 18.57%, representing a significant improvement compared to the previous year where it was 12.48%. This indicates that the company generated $0.1857 in net income for every $1 of assets in 2023, reflecting increased efficiency in asset utilization.

In 2021, Wingstop Inc also demonstrated a strong ROA of 17.12%, which suggests effective management of assets to generate earnings. However, in 2020 and 2019, the ROA figures were lower at 11.02% and 12.33% respectively, implying a relatively lower return on the assets employed by the company during those years.

Overall, the recent upward trend in ROA indicates improved profitability and efficiency in asset utilization by Wingstop Inc. It is essential for investors and stakeholders to monitor this metric to assess the company's ability to generate returns from its assets effectively.