The Chefs Warehouse Inc (CHEF)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 24.09% | 24.02% | 24.20% | 22.59% | 22.75% |
| Operating profit margin | 3.38% | 2.98% | 3.35% | 0.63% | -9.41% |
| Pretax margin | 2.10% | 1.64% | 1.64% | -0.39% | -11.33% |
| Net profit margin | 1.46% | 1.02% | 1.09% | -0.28% | -7.60% |
The Chefs Warehouse Inc's profitability ratios reflect a mixed performance over the past five years.
- Gross profit margin remained relatively stable, showing a slight increase from 22.75% in December 2020 to 24.09% in December 2024. This indicates that the company has been able to maintain a consistent level of profitability on its sales after accounting for the cost of goods sold.
- Operating profit margin, which reflects the company's ability to control operating expenses, improved significantly from negative figures in December 2020 to reach 3.38% in December 2024. This suggests that the company has been more efficient in managing its operating costs to generate profits.
- Pretax margin, indicating the company's profitability before taxes, showed a consistent improvement from negative figures to reach 2.10% in December 2024. This demonstrates the company's ability to generate profits at a higher level before accounting for tax expenses.
- Net profit margin, which represents the company's bottom-line profitability, also displayed a positive trend over the period, increasing from negative values to reach 1.46% in December 2024. This signifies that The Chefs Warehouse Inc has been able to enhance its profitability at the net income level.
Overall, while the company has shown improvements in its profitability margins over the years, it is essential for them to continue focusing on efficiency and cost management to sustain and further grow their profitability in the future.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.90% | 5.92% | 5.68% | 1.01% | -10.54% |
| Return on assets (ROA) | 2.98% | 2.03% | 1.84% | -0.46% | -8.51% |
| Return on total capital | 10.45% | 9.02% | 8.13% | 1.45% | -13.82% |
| Return on equity (ROE) | 10.32% | 7.61% | 6.91% | -1.41% | -24.06% |
The profitability ratios of The Chefs Warehouse Inc show varying trends over the past five years.
- Operating return on assets (Operating ROA) has shown an improving trend, increasing from -10.54% in December 2020 to 6.90% in December 2024. This indicates that the company is generating higher operating income relative to its assets over time.
- Return on assets (ROA) has also shown improvement, moving from negative percentages to positive percentages over the same period. It has increased from -8.51% in December 2020 to 2.98% in December 2024, reflecting a better utilization of assets to generate profits.
- Return on total capital has shown consistent growth, rising from -13.82% in December 2020 to 10.45% in December 2024. This indicates that the company has been more effective in generating returns for both equity and debt holders.
- Return on equity (ROE) has similarly exhibited positive growth, improving from -24.06% in December 2020 to 10.32% in December 2024. This shows that shareholders' equity has become more efficiently utilized to generate profits for the company.
Overall, the improving trend in these profitability ratios suggests that The Chefs Warehouse Inc has enhanced its operational efficiency and is delivering better returns to both investors and creditors over the analyzed period.