Burlington Stores Inc (BURL)
Profitability ratios
Return on sales
| Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | |
|---|---|---|---|---|---|
| Gross profit margin | 9.85% | 8.69% | 7.25% | 10.80% | 38.11% |
| Operating profit margin | -23.65% | -25.22% | -26.07% | -20.09% | -42.72% |
| Pretax margin | 6.35% | 4.79% | 3.53% | 5.85% | -7.59% |
| Net profit margin | 4.74% | 3.49% | 2.64% | 4.39% | -3.76% |
The gross profit margin for Burlington Stores Inc has shown a declining trend over the past five years, decreasing from 38.11% in January 30, 2021 to 9.85% in February 1, 2025. This indicates that the company's profitability on sales has decreased significantly over this period.
Similarly, the operating profit margin has also been negative throughout the five-year period, ranging from -42.72% in January 30, 2021 to -23.65% in February 1, 2025. This suggests that Burlington Stores Inc has been incurring operating losses consistently over the years.
Despite the negative operating profits, the pretax margin has shown some improvement from -7.59% in January 30, 2021 to 6.35% in February 1, 2025. This indicates that the company's ability to generate profits before taxes has improved, although it still remains low compared to industry standards.
On a positive note, the net profit margin has also exhibited an increasing trend, rising from -3.76% in January 30, 2021 to 4.74% in February 1, 2025. This signifies that Burlington Stores Inc has been able to control its costs and expenses better in recent years, resulting in improved profitability after accounting for all costs.
Overall, while the company has shown some improvements in its pretax and net profit margins, the declining trend in gross profit margin and persistent negative operating profit margin indicate ongoing challenges in managing costs and improving operational efficiency.
Return on investment
| Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -28.68% | -31.83% | -31.21% | -26.41% | -36.31% |
| Return on assets (ROA) | 5.74% | 4.41% | 3.17% | 5.77% | -3.19% |
| Return on total capital | 49.46% | 47.23% | 39.46% | 72.82% | -92.47% |
| Return on equity (ROE) | 36.75% | 34.07% | 28.95% | 53.77% | -46.58% |
Based on the provided data, Burlington Stores Inc's profitability ratios show mixed performance over the years.
1. Operating Return on Assets (Operating ROA): The Operating ROA has ranged between -26.41% and -36.31% over the period under review. This indicates that the company has generated negative operating income relative to its total assets, with the lowest performance in January 30, 2021.
2. Return on Assets (ROA): The ROA has varied between -3.19% and 5.74% during the period. Despite the fluctuations, the company managed to achieve a positive return on assets in most years, demonstrating its ability to generate profit from its assets, with the highest performance in February 1, 2025.
3. Return on Total Capital: The Return on Total Capital has shown a notable improvement from -92.47% in January 30, 2021 to 49.46% in February 1, 2025. This suggests that the company has become more effective in generating returns on both equity and debt capital invested in the business.
4. Return on Equity (ROE): The ROE has fluctuated between -46.58% and 36.75% over the period. The company experienced negative return on equity in January 30, 2021, but managed to achieve positive returns in the subsequent years, indicating that shareholders' equity has been utilized more efficiently to generate profit.
In conclusion, while Burlington Stores Inc has faced challenges in operating profitability, its ability to generate positive returns on assets, total capital, and equity has shown improvement over the years, reflecting a mixed but generally positive trend in profitability performance.