Bellring Brands LLC (BRBR)
Profitability ratios
Return on sales
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|
| Gross profit margin | 31.81% | 30.75% | 30.97% | 34.20% |
| Operating profit margin | 17.24% | 15.49% | 13.47% | 16.59% |
| Pretax margin | 13.22% | 8.16% | 2.92% | 3.31% |
| Net profit margin | 9.93% | 6.00% | 2.21% | 2.38% |
Bellring Brands Inc's profitability ratios indicate a mixed performance over the past five years. The gross profit margin has fluctuated within a narrow range, improving slightly from 30.97% in 2021 to 31.81% in 2023. This indicates a moderate level of control over the cost of goods sold. However, the operating profit margin has shown more variability, declining from 19.02% in 2019 to 13.46% in 2021 before rebounding to 17.24% in 2023. This suggests some challenges in controlling operating expenses but an improvement in recent years.
The pretax margin has also displayed volatility, reflecting the impact of operating and non-operating expenses. It increased from 9.88% in 2021 to 13.22% in 2023, showing a positive trend. Notably, the net profit margin has shown substantial variation, declining from 14.41% in 2019 to 2.21% in 2021 before recovering slightly to 9.93% in 2023. This suggests challenges in managing taxes and other non-operating expenses. Overall, while Bellring Brands Inc has demonstrated some control over the cost of goods sold, it faces challenges in managing operating and non-operating expenses, impacting its overall profitability.
Return on investment
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 41.54% | 30.03% | 24.12% | 25.10% |
| Return on assets (ROA) | 23.93% | 11.64% | 3.96% | 3.60% |
| Return on total capital | 53.87% | 29.12% | — | — |
| Return on equity (ROE) | — | — | — | — |
Bellring Brands Inc has shown a consistent improvement in its profitability ratios over the past five years. The operating return on assets (Operating ROA), which measures the company's operating income generated per dollar of assets, has significantly increased from 27.33% in 2019 to 41.54% in 2023, indicating strong operational efficiency and asset utilization.
The return on assets (ROA), which assesses the company's overall profitability in relation to its total assets, has also demonstrated a notable upward trend, rising from 3.60% in 2020 to 23.93% in 2023. This suggests that the company has been effectively generating profits from its assets.
Furthermore, the return on total capital has consistently improved, reaching 53.87% in 2023, reflecting the company's ability to generate significant returns in relation to its total capital employed. The absence of data for 2021 suggests a possible change in reporting methodologies or a significant event impacting the company's financial structure.
Notably, the return on equity (ROE) data is not available, preventing a comprehensive assessment of the company's profitability in relation to shareholders' equity. This may be due to the unavailability of certain financial information or changes in the company's equity structure.
In summary, Bellring Brands Inc has exhibited favorable profitability ratios, indicating efficient operational performance and effective utilization of assets and capital to generate returns for its stakeholders. Nevertheless, further insight into the company's return on equity would provide a more holistic view of its overall profitability.