Albertsons Companies (ACI)
Profitability ratios
Return on sales
| Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 27.06% | 27.78% | 27.80% | 27.79% | 28.40% | 27.77% | 27.82% | 27.43% | 27.54% | 27.73% | 27.86% | 28.51% | 28.83% | 28.88% | 28.97% | 29.08% | 29.29% | 29.23% | 29.04% | 28.77% |
| Operating profit margin | 2.05% | 2.34% | 2.50% | 2.73% | 2.88% | 2.81% | 2.75% | 2.85% | 2.98% | 3.31% | 3.40% | 3.40% | 3.39% | 2.27% | 1.82% | 1.95% | 2.32% | 3.06% | 3.04% | 3.14% |
| Pretax margin | 1.41% | 1.53% | 1.59% | 1.78% | 2.01% | 2.05% | 2.11% | 2.29% | 2.49% | 2.85% | 2.94% | 2.91% | 2.92% | 1.83% | 1.33% | 1.35% | 1.62% | 2.06% | 1.97% | 1.99% |
| Net profit margin | 1.19% | 1.30% | 1.25% | 1.41% | 1.64% | 1.71% | 1.74% | 1.85% | 1.95% | 2.16% | 2.27% | 2.24% | 2.25% | 1.45% | 1.04% | 1.04% | 1.22% | 1.53% | 1.46% | 1.51% |
The analysis of Albertsons Companies' profitability ratios over the period provided reflects several notable trends.
Gross Profit Margin:
The gross profit margin exhibits a generally declining trend from a high of 29.23% as of November 30, 2020, to approximately 27.06% at the end of February 2025. Despite minor fluctuations, the margin has remained relatively stable around the mid-27% range following a slight decrease from its peak. This suggests a gradual narrowing of gross profitability, potentially attributable to increased cost pressures or competitive pricing strategies impacting gross margins.
Operating Profit Margin:
The operating profit margin has shown a consistent decline over the analyzed period. It started at approximately 3.06% in late 2020 and decreased to around 2.05% by February 2025. The margins have experienced periodic fluctuations, but the overarching trend indicates compression of operating profitability, possibly due to rising operating expenses or other operational challenges.
Pre-tax Margin:
Similarly, the pre-tax profit margin has declined from approximately 2.06% in late 2020 to roughly 1.41% at the end of February 2025. This contraction aligns with the trends observed in gross and operating margins, underscoring pressures on overall profitability before tax considerations.
Net Profit Margin:
The net profit margin has followed a downward trajectory, decreasing from roughly 1.53% at the end of 2020 to approximately 1.19% by February 2025. The steady decline indicates that after accounting for all expenses, taxes, and interest, the net profitability remains under pressure, potentially reflecting margin erosion or increased non-operational costs.
Overall, these ratios collectively depict a pattern of gradual margin compression across all levels of profitability in Albertsons Companies over the analyzed period. This trend may be indicative of industry-wide cost pressures, competitive pricing strategies, or shifts in product mix and operational efficiencies. The stability in the gross profit margin, coupled with declining operating, pre-tax, and net margins, suggests that margin compression is occurring more due to higher operational and other expenses rather than gross margin deterioration alone.
Return on investment
| Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.17% | 7.00% | 7.51% | 8.31% | 7.93% | 8.40% | 8.22% | 8.66% | 8.84% | 8.42% | 8.91% | 8.89% | 8.67% | 5.72% | 4.60% | 4.98% | 6.08% | 8.05% | 7.81% | 8.03% |
| Return on assets (ROA) | 3.58% | 3.89% | 3.76% | 4.29% | 4.50% | 5.12% | 5.21% | 5.60% | 5.78% | 5.49% | 5.93% | 5.88% | 5.76% | 3.65% | 2.63% | 2.65% | 3.20% | 4.04% | 3.75% | 3.86% |
| Return on total capital | 46.76% | 47.76% | 54.84% | 62.22% | 74.21% | 86.89% | 99.17% | 115.09% | 144.06% | 312.26% | 59.64% | 63.17% | 83.83% | 76.79% | 71.91% | 84.13% | 125.87% | 144.96% | 129.60% | 165.37% |
| Return on equity (ROE) | 28.31% | 30.82% | 33.05% | 38.43% | 47.17% | 53.68% | 61.84% | 72.32% | 91.37% | 202.38% | 38.90% | 40.76% | 53.55% | 44.16% | 36.71% | 41.73% | 64.20% | 77.27% | 66.15% | 83.99% |
The profitability analysis of Albertsons Companies, based on the provided financial ratios over the analyzed period, reflects a generally stable yet modest performance in key areas.
Operating Return on Assets (Operating ROA) experienced fluctuations but overall remained within a narrow range, indicating consistent operational efficiency. At its peak in the recent period (August 2022), it reached approximately 8.91%, suggesting effective utilization of assets in generating operating income. However, there was a noticeable decline to around 7.00% by November 2024, highlighting some challenges in maintaining peak operational performance over time.
Return on Assets (ROA) displayed a declining trend throughout the period. Starting at 3.86% in May 2020, it generally decreased to approximately 3.58% by February 2025. This downward drift may indicate decreasing overall profitability relative to total assets, possibly due to_changes in net income margins or asset base composition.
Return on Total Capital exhibited substantial variability, with an exceptionally high figure of about 312.26% in November 2022, which appears anomalous and potentially indicative of extraordinary items, accounting adjustments, or data irregularities within specific periods. Outside of this outlier, historical values mostly ranged between approximately 54% and 165%, illustrating effective utilization of capital to generate returns, albeit with some periods of diminished efficiency.
Return on Equity (ROE) also demonstrated variability, with historically high figures, notably surpassing 200% in November 2022, which again suggests exceptional circumstances or accounting irregularities during that period. More consistent ROE figures in other periods ranged from roughly 28% to 91%, illustrating a relatively favorable return to shareholders during most of the analyzed timeframe, though declining trendlines are observable.
Overall, the data indicates that while Albertsons has maintained operational efficiencies and capital utilization at reasonable levels, there have been periods of significant volatility. The recent trend shows a decline in profitability ratios, emphasizing the importance of monitoring ongoing operational performance and potential external or internal factors influencing profitability metrics.