Chewy Inc (CHWY)
Profitability ratios
Return on sales
| Jan 31, 2025 | Jan 31, 2024 | Jan 28, 2024 | Jan 31, 2023 | Jan 29, 2023 | |
|---|---|---|---|---|---|
| Gross profit margin | 29.24% | 28.36% | 28.37% | 28.03% | 28.04% |
| Operating profit margin | 0.95% | -0.21% | -0.21% | 0.55% | 0.55% |
| Pretax margin | 1.28% | 0.43% | 0.43% | 0.51% | 0.51% |
| Net profit margin | 3.31% | 0.36% | 0.36% | 0.49% | 0.49% |
Chewy Inc's profitability ratios show a consistent improvement over the years. The gross profit margin has been gradually increasing from 28.04% in January 2023 to 29.24% in January 2025, indicating the company's ability to generate profits from its core operations efficiently.
However, the operating profit margin experienced some fluctuations, starting at 0.55% in January 2023, turning negative at -0.21% in January 2024, and then recovering to 0.95% by January 2025. This could suggest varying levels of operational efficiency and cost management during the period.
On the other hand, the pretax margin remained relatively stable around 0.43% to 1.28% throughout the analyzed period, reflecting Chewy Inc's ability to manage its pre-tax earnings and expenses effectively.
The most significant improvement is seen in the net profit margin, which increased significantly from 0.49% in January 2023 to 3.31% in January 2025. This indicates a substantial growth in the company's bottom line profitability, showcasing its ability to control expenses and generate higher net income relative to its revenue.
Overall, despite some fluctuations in the operating profit margin, Chewy Inc has shown solid improvement in its profitability ratios over the years, with a notable increase in net profit margin reflecting strong overall performance.
Return on investment
| Jan 31, 2025 | Jan 31, 2024 | Jan 28, 2024 | Jan 31, 2023 | Jan 29, 2023 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.73% | -0.74% | -0.74% | 2.22% | 2.21% |
| Return on assets (ROA) | 13.03% | 1.24% | 1.24% | 1.98% | 1.95% |
| Return on total capital | 60.13% | 10.15% | 10.15% | 26.06% | 33.98% |
| Return on equity (ROE) | 150.21% | 7.76% | 7.76% | 23.32% | 30.72% |
Chewy Inc's profitability ratios exhibit certain trends over the given period.
1. Operating return on assets (Operating ROA) remained relatively stable around 2% in the years 2023 and 2024. However, there was a decline to -0.74% in January 2024, which remained unchanged in January 2025. This negative Operating ROA indicates a decrease in operating efficiency and profitability relative to the assets employed.
2. Return on assets (ROA) also indicates a consistent but modest performance in the years 2023 and 2024, hovering around 1-2%. However, there was a substantial increase to 13.03% in January 2025, indicating a significant improvement in overall asset utilization and profitability in the most recent period.
3. Return on total capital shows a decline from 33.98% in January 2023 to 10.15% in January 2024, indicating lower returns generated on the total capital employed in the business. However, there was a significant jump to 60.13% in January 2025, signifying enhanced efficiency in generating returns on total invested capital.
4. Return on equity (ROE) reflects a similar pattern, with a decrease from 30.72% in January 2023 to 7.76% in January 2024. However, there was a substantial surge to 150.21% in January 2025, indicating a remarkable improvement in generating returns for equity shareholders.
In conclusion, Chewy Inc's profitability ratios show mixed performance over the analyzed period, with significant improvements in ROA, Return on total capital, and ROE in January 2025 compared to the previous years. This suggests a potential enhancement in the company's operational efficiency and profitability in the latest period.