Academy Sports Outdoors Inc (ASO)

Return on sales

The profitability ratios of Academy Sports Outdoors Inc provide insights into the company's ability to generate profits in relation to its revenue and operating costs.

1. Gross Profit Margin: Over the period analyzed, the gross profit margin ranged from 33.90% to 34.86%. This indicates that the company is able to maintain a fairly stable level of profitability after accounting for the direct costs associated with producing or purchasing the goods it sells.

2. Operating Profit Margin: The operating profit margin showed a slight decline from 13.34% to 9.08% over the period under review. This suggests that the company's operational efficiency in managing its operating expenses and generating profits from its core business activities has decreased over time.

3. Pre-Tax Margin: Similarly, the pre-tax margin decreased from 12.89% to 9.07% during the period analyzed. This indicates that the company's ability to generate profits before accounting for taxes has declined, possibly due to changes in revenue, expenses, or a combination of both.

4. Net Profit Margin: The net profit margin also demonstrated a downward trend, falling from 9.89% to 7.05%. This ratio reflects the company's overall profitability after accounting for all expenses, including taxes. The declining trend suggests that the company may be facing challenges in controlling its costs and/or maintaining revenue growth.

Overall, the declining trend in profitability margins for Academy Sports Outdoors Inc raises concerns about the company's operational efficiency and ability to sustain its level of profitability in the future. Management may need to focus on cost control measures and revenue-enhancing strategies to improve the company's overall profitability.

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Return on investment

Academy Sports Outdoors Inc's profitability ratios indicate its ability to generate profits relative to its assets and capital.

1. Operating Return on Assets (Operating ROA):
- The Operating ROA was stable at 18.42% in January 2023 and remained relatively consistent until January 2024 before decreasing to 10.99% by January 2025. This ratio represents the company's operational efficiency in utilizing its assets to generate operating profits.

2. Return on Assets (ROA):
- The ROA mirrored the trend of the Operating ROA, with a gradual decline from 13.67% in January 2023 to 8.54% by January 2025. This ratio reflects the overall profitability of the company in relation to its total assets, considering all income, not just operating income.

3. Return on Total Capital:
- Return on Total Capital decreased from 38.26% in January 2023 to 28.70% by January 2025. This ratio indicates the company's ability to generate profits using both equity and debt capital invested in the business.

4. Return on Equity (ROE):
- The ROE declined from 38.57% in January 2023 to 20.88% by January 2025. ROE reflects the return generated for shareholders based on their equity investment in the company.

Overall, the declining trend in profitability ratios suggests a potential decrease in the company's ability to generate profits relative to its assets, capital, and equity over the evaluated period. Further analysis would be needed to understand the factors contributing to these trends and to assess the overall financial health and performance of Academy Sports Outdoors Inc.