Albertsons Companies (ACI)
Profitability ratios
Return on sales
| Feb 28, 2025 | Feb 29, 2024 | Feb 28, 2023 | Feb 28, 2022 | Feb 28, 2021 | |
|---|---|---|---|---|---|
| Gross profit margin | 27.68% | 25.79% | 28.02% | 28.83% | 29.29% |
| Operating profit margin | 1.92% | 2.61% | 2.97% | 3.39% | 2.32% |
| Pretax margin | 1.41% | 2.01% | 2.49% | 2.92% | 1.62% |
| Net profit margin | 1.19% | 1.64% | 1.95% | 2.25% | 1.22% |
The profitability ratios of Albertsons Companies over the specified periods indicate a trend of declining profitability margins.
Gross profit margin demonstrates a gradual decrease from 29.29% as of February 28, 2021, to 28.83% in 2022, further declining to 28.02% in 2023, and continuing downward to 25.79% in 2024. A slight recovery is observed in 2025, with the margin rising to 27.68%. The overall pattern suggests a compression in gross profitability, potentially attributable to increased cost of goods sold or competitive pressures affecting sales pricing strategies.
The operating profit margin reflects a similar downward trend, decreasing from 2.32% in 2021 to a low of 1.92% in 2025. Although there was a marginal increase to 3.39% in 2022, subsequent years have experienced contractions, indicating rising operating expenses or challenges in managing operating efficiencies over time.
Pretax margin follows the pattern of decline, falling from 1.62% in 2021 to 1.41% in 2025. While temporary increases occurred, the overall trajectory points to reduced profitability before taxes, which could be influenced by shifts in non-operating income or expenses.
Net profit margin exhibits a similar downward trend, dropping from 1.22% in 2021 to 1.19% in 2025. The marginal decline emphasizes tightening profitability after accounting for all expenses, taxes, and costs.
In summary, Albertsons Companies' profitability ratios illustrate a consistent erosion of profit margins across gross, operating, pretax, and net measures over the analyzed period. The margins show signs of pressure from rising costs, competitive dynamics, or operational challenges, with a brief anomaly in 2022 possibly reflecting temporary improvements or strategic adjustments.
Return on investment
| Feb 28, 2025 | Feb 29, 2024 | Feb 28, 2023 | Feb 28, 2022 | Feb 28, 2021 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.78% | 7.89% | 8.82% | 8.67% | 6.08% |
| Return on assets (ROA) | 3.58% | 4.94% | 5.78% | 5.76% | 3.20% |
| Return on total capital | 47.24% | 76.32% | 152.39% | 80.94% | 118.63% |
| Return on equity (ROE) | 28.31% | 47.17% | 93.97% | 53.55% | 64.20% |
The analysis of Albertsons Companies' profitability ratios over the specified period reveals varying trends and insights into the company's financial performance.
Operating Return on Assets (Operating ROA) exhibited a significant increase from 6.08% as of February 28, 2021, to 8.67% in 2022, further improving to 8.82% by February 28, 2023. However, a decline was observed in 2024, with the ratio decreasing to 7.89%, followed by a notable reduction to 5.78% in 2025. This pattern suggests initial improvements in operational efficiency post-2021, potentially driven by cost management or revenue enhancements, but a subsequent deterioration or operational challenges emerged in the later years.
Return on Assets (ROA) followed a similar trend, starting at 3.20% in 2021, rising sharply to 5.76% in 2022, and remaining steady at 5.78% in 2023. Subsequently, a decline was evident, with the ratio decreasing to 4.94% in 2024 and further dropping to 3.58% in 2025. The decline indicates diminished overall profitability relative to total assets in recent years, possibly reflecting increased asset base or pressures on profit margins.
Return on Total Capital experienced considerable fluctuations, peaking at 152.39% in 2023 from 118.63% in 2021. It decreased significantly to 76.32% in 2024 and further to 47.24% in 2025. Despite the overall downward trend in recent years, the high ratio in 2023 suggests periods of efficient utilization of total capital, while the subsequent decline indicates reduced effectiveness or increased capital costs.
Return on Equity (ROE) shows notable variability, starting at 64.20% in 2021, decreasing to 53.55% in 2022, then sharply rising to 93.97% in 2023. Following this peak, ROE declined to 47.17% in 2024 and further to 28.31% in 2025. The significant fluctuation, especially the peak in 2023, reflects periods of high profitability relative to shareholders’ equity, but the downward trend indicates a reduction in net income generation efficiency or increased equity base diluting returns in recent years.
Overall, the data indicates that Albertsons experienced substantial improvements in profitability indicators through 2022 and 2023, with notable peaks in certain ratios like ROE and Return on Total Capital. However, these gains have not been sustained, as a downward trend is apparent from 2024 onward across all key profitability ratios, reflecting potential challenges in maintaining previous profitability levels, operational efficiencies, or profit margins.