BJs Wholesale Club Holdings Inc (BJ)
Profitability ratios
Return on sales
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 17.99% | 17.60% | 18.20% | 19.31% | 18.40% |
| Operating profit margin | 4.02% | 3.83% | 3.72% | 4.16% | 2.67% |
| Pretax margin | 3.70% | 3.58% | 3.36% | 3.62% | 1.85% |
| Net profit margin | 2.63% | 2.66% | 2.57% | 2.73% | 1.42% |
From the data provided, we observe the following trends in BJs Wholesale Club Holdings Inc profitability ratios over the past five years:
1. Gross Profit Margin:
- BJs Wholesale Club's gross profit margin has fluctuated over the years, with a slight decrease from 19.31% in 2021 to 17.99% in 2024. This metric indicates the company's ability to generate profit after accounting for the cost of goods sold.
2. Operating Profit Margin:
- The operating profit margin has shown a steady increase from 2.67% in 2020 to 4.02% in 2024. This demonstrates the company's efficiency in managing operating expenses relative to its revenue.
3. Pretax Margin:
- BJs Wholesale Club's pretax margin has been relatively stable around the 3% range over the past five years, with a slight increase from 1.85% in 2020 to 3.70% in 2024. This ratio reflects the company's ability to generate profit before taxes relative to its total revenue.
4. Net Profit Margin:
- The net profit margin, which indicates the company's profitability after all expenses have been deducted, remained fairly consistent between 2.57% and 2.73% from 2022 to 2024. This shows BJs Wholesale Club's ability to control costs and generate bottom-line profit.
Overall, BJs Wholesale Club Holdings Inc has shown improvements in its operating profit margin over the years, indicating better cost control and operational efficiency. However, the slight decline in gross profit margin in 2024 may warrant further analysis to understand the factors influencing the company's profitability.
Return on investment
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 11.99% | 11.62% | 10.89% | 11.87% | 6.68% |
| Return on assets (ROA) | 7.84% | 8.08% | 7.53% | 7.78% | 3.55% |
| Return on total capital | 43.10% | 49.37% | 44.20% | 55.12% | 27.45% |
| Return on equity (ROE) | 35.90% | 49.02% | 65.83% | 131.85% | — |
Operating return on assets (Operating ROA) measures a company's operating income generated per dollar of assets. BJs Wholesale Club Holdings Inc has shown steady improvement in its Operating ROA over the past five years, with a current ratio of 11.99% indicating that the company is generating a healthy return on its assets.
Return on assets (ROA) evaluates the overall profitability of a company relative to its total assets. While BJs Wholesale Club Holdings Inc's ROA has fluctuated slightly over the years, the current ratio of 7.84% demonstrates that the company is effectively utilizing its assets to generate profits.
Return on total capital reflects the profitability of a company considering both equity and debt financing. Despite some variability, BJs Wholesale Club Holdings Inc has consistently achieved high returns on total capital, with the current ratio of 43.10% indicating efficient use of both equity and debt to generate profits.
Return on equity (ROE) measures the profitability generated for each dollar invested by shareholders. BJs Wholesale Club Holdings Inc's ROE has displayed significant fluctuations over the years, but the most recent ratio of 35.90% still reflects strong returns for shareholders' equity. This varying trend may suggest changes in capital structure or business strategy.
In general, BJs Wholesale Club Holdings Inc's profitability ratios indicate solid performance and effective management of assets and capital, with a focus on generating returns for both investors and stakeholders.