The nature of the FMCG business is a high turnover, low capex business. You lease your stores, you buy your products on 60 day credit, streamlined distibution means can have it on the shelves and sold in a week or two. You bank the cash for a month then pay the bills. Your business is esssentially funded by your suppliers.
The business model suggest is one of a low asset base and as a result ROA will naturally be high. Its not so much the ROA is not suitable, its that the profitability that leads to the high ROA is better reflected in the other figures eg. EBIT Margin, CODB etc..
In any case, looking back at WES profitability ratios is no good. It should be no suprise that the previous owners did not manage the business well. What is of interest is what WES have done since they have taken over. WOW stole thier business model from Walmart, and now WES are stealing it from WOW. Judging how they have gone so far, there is no reason why WES wont achieve what WOW did five years ago.
If you own WOW you should own WES for the same reasons.
wow vs wes roic, page-16
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