Apogee Enterprises Inc (APOG)

Return on sales

Apogee Enterprises Inc's profitability ratios indicate the following trends over the specified time periods:

1. Gross Profit Margin:
- The gross profit margin has shown a steady increase from 23.27% on February 25, 2023, to 26.44% on February 28, 2025. This indicates that Apogee Enterprises Inc has been able to effectively control its cost of goods sold and increase its gross profitability over time.

2. Operating Profit Margin:
- The operating profit margin remained relatively stable, ranging from 8.68% on February 28, 2025, to 9.45% on February 29, 2024. This suggests that the company has maintained efficiency in managing its operating expenses to generate profits.

3. Pretax Margin:
- The pretax margin also exhibited consistency, with a range of 8.09% on February 25, 2023, to 9.12% on February 29, 2024. This implies that Apogee Enterprises Inc has been successful in managing its operating and non-operating expenses effectively.

4. Net Profit Margin:
- The net profit margin decreased slightly from 7.23% on February 28, 2023, to 6.25% on February 28, 2025. This indicates that while the company has been able to maintain profitability, there may have been some increase in expenses impacting the bottom line.

Overall, Apogee Enterprises Inc has demonstrated consistent profitability, with improvements in gross profit margin and stable operating and pretax margins. However, the slight decline in net profit margin warrants further investigation to understand the factors affecting the company's bottom line performance.

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Return on investment

Based on the provided data, let's analyze the profitability ratios of Apogee Enterprises Inc:

1. Operating Return on Assets (Operating ROA): This ratio measures the efficiency of the company in generating operating profits from its assets. The trend in Apogee Enterprises Inc's Operating ROA shows a consistent performance, hovering around 13.74% to 15.14% over the years. A higher Operating ROA implies that the company is effectively utilizing its assets to generate operating income.

2. Return on Assets (ROA): ROA indicates how efficiently a company is utilizing its assets to generate profits. Apogee Enterprises Inc's ROA has shown a decreasing trend from 11.37% to 7.24% from February 25, 2023, to February 28, 2025. A declining ROA suggests a decrease in profitability relative to the size of the assets employed.

3. Return on Total Capital: This ratio shows the return generated from both equity and debt capital invested in the business. Apogee Enterprises Inc's Return on Total Capital has fluctuated but generally decreased from 31.55% to 24.34% during the period. A higher Return on Total Capital indicates better efficiency in generating returns for all capital sources.

4. Return on Equity (ROE): ROE measures the return earned on the shareholders' equity in the business. Apogee Enterprises Inc's ROE has also declined from 26.26% to 17.43% from February 25, 2023, to February 28, 2025. A decreasing ROE can signal lower profitability relative to the equity invested by shareholders.

Overall, while Apogee Enterprises Inc has shown consistency in its Operating ROA, the ROA, Return on Total Capital, and ROE have exhibited a declining trend over the years. It indicates a potential decrease in the company's overall profitability and efficiency in utilizing assets and capital. Further analysis and investigation into the factors influencing these ratios are necessary to understand the company's financial performance comprehensively.