Burlington Stores Inc (BURL)
Profitability ratios
Return on sales
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 8.69% | 7.25% | 10.80% | 38.11% | 41.62% |
| Operating profit margin | -25.22% | -26.07% | -20.09% | -42.72% | -19.20% |
| Pretax margin | 4.79% | 3.53% | 5.85% | -7.59% | 7.97% |
| Net profit margin | 3.49% | 2.64% | 4.39% | -3.76% | 6.38% |
Burlington Stores Inc's profitability ratios have shown fluctuations over the past five years. The gross profit margin, a measure of how much of each sales dollar remains after accounting for the cost of goods sold, has decreased from 41.62% in 2020 to 8.69% in 2024. This indicates a significant decline in the company's ability to generate profits at the gross level.
The operating profit margin, which reflects the company's ability to generate profits from its core operations, has also shown a downward trend from -19.20% in 2020 to -25.22% in 2024. This suggests that Burlington Stores Inc is experiencing operational challenges that are impacting its profitability.
On a positive note, the pretax margin has improved from -7.59% in 2021 to 4.79% in 2024, indicating better management of expenses and higher operating efficiency. However, the company's net profit margin, which represents the percentage of each sales dollar that remains as net income after all expenses are deducted, has shown mixed performance, with a high of 6.38% in 2020 and a low of 2.64% in 2023.
Overall, Burlington Stores Inc's profitability ratios reflect a challenging operating environment with fluctuations in profitability levels over the past five years. The company may need to focus on cost management, operational efficiency, and revenue generation strategies to improve its profitability in the future.
Return on investment
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -31.83% | -31.21% | -26.41% | -36.31% | -25.01% |
| Return on assets (ROA) | 4.41% | 3.17% | 5.77% | -3.19% | 8.31% |
| Return on total capital | 47.23% | 39.46% | 72.82% | -92.47% | 110.68% |
| Return on equity (ROE) | 34.07% | 28.95% | 53.77% | -46.58% | 88.07% |
Burlington Stores Inc's profitability ratios show mixed performance over the past five years.
1. Operating return on assets (Operating ROA) has been consistently negative, ranging from -36.31% to -25.01%. This indicates that the company's core operations have not been generating positive returns on its assets, reflecting inefficiencies in managing its resources.
2. Return on assets (ROA) has varied widely from a negative return of -3.19% to a positive return of 8.31%. Despite the fluctuations, the company has managed to achieve positive returns on its total assets in most years, indicating its ability to generate profits relative to its asset base.
3. Return on total capital has also shown fluctuations, ranging from -92.47% to 110.68%. The significant negative return in 2021 may indicate challenges in effectively utilizing the total capital employed in the business, while the high return in 2020 suggests a strong performance in that particular year.
4. Return on equity (ROE) has ranged from -46.58% to 88.07%, indicating significant volatility in shareholder returns over the years. The negative returns in some years highlight the company's struggle to generate profits relative to the shareholders' equity, while the positive returns demonstrate periods of profitability and value creation for shareholders.
In conclusion, Burlington Stores Inc's profitability ratios reflect inconsistent performance in profitability over the years, with challenges in operational efficiency and capital utilization. Investors and analysts may need to closely monitor the company's strategies and financial performance to assess its ability to improve profitability and create sustainable shareholder value.