Chewy Inc (CHWY)
Profitability ratios
Return on sales
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 28.37% | 28.04% | 26.70% | 25.48% | 23.60% |
| Operating profit margin | -0.21% | 0.55% | -0.81% | -1.27% | -5.21% |
| Pretax margin | 0.43% | 0.51% | -0.83% | -1.29% | -5.21% |
| Net profit margin | 0.36% | 0.49% | -0.83% | -1.29% | -5.21% |
Chewy Inc's profitability ratios show a mixed performance over the past five years. The gross profit margin has been steadily increasing, reaching 28.37% in January 2024, indicating the company's ability to effectively manage its direct costs related to product sales.
However, the operating profit margin has been fluctuating, with a negative figure of -0.21% in January 2024. This suggests that Chewy Inc is facing challenges in controlling its operating expenses relative to its revenue generation.
The pretax margin has also seen fluctuations, with a positive figure of 0.43% in January 2024. This indicates that the company's profitability before accounting for taxes has improved slightly compared to previous years.
The net profit margin, representing the company's bottom line profitability, shows a similar trend to the pretax margin, with a positive figure of 0.36% in January 2024. This indicates that Chewy Inc has been able to generate a small profit after accounting for all expenses and taxes, showing signs of improvement compared to earlier periods.
Overall, Chewy Inc's profitability ratios suggest a mix of positive and challenging trends, highlighting the importance of closely monitoring and managing both revenue and expenses to enhance overall profitability.
Return on investment
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -0.74% | 2.21% | -3.46% | -5.20% | -27.11% |
| Return on assets (ROA) | 1.24% | 1.95% | -3.54% | -5.31% | -27.07% |
| Return on total capital | 10.15% | 33.98% | -486.26% | — | — |
| Return on equity (ROE) | 7.76% | 30.72% | -500.93% | — | — |
Chewy Inc's profitability ratios exhibit a varied trend over the past five years.
Starting with Operating return on assets (Operating ROA), the company's performance has been inconsistent. In 2023, it recorded a positive Operating ROA of 2.21%, indicating that it generated a modest return from its operating activities. However, this metric declined to -0.74% in 2024, signaling that the company's operating efficiency may have deteriorated.
Similarly, Return on assets (ROA) shows a mixed performance for Chewy Inc. While it achieved a positive ROA in 2024 and 2023, the figure remained low at 1.24% and 1.95% respectively. Notably, in 2021 and 2022, the company reported negative ROA figures, suggesting that its assets may not have been effectively utilized to generate profits during those years.
Analyzing Return on total capital, it is evident that Chewy Inc experienced a significant improvement in 2024 as compared to 2023. The return on total capital surged to 10.15% in 2024 from 33.98% in 2023, indicating a positive trend in generating returns from the total capital employed by the company. However, the data for 2022 reveals an extremely negative return on total capital of -486.26%, which could be a concerning sign of inefficiencies in capital deployment in that particular year.
Lastly, considering Return on equity (ROE), Chewy Inc's performance has been volatile over the years. The company reported positive ROE figures in 2024 and 2023, albeit at lower levels compared to the previous year. Notably, in 2021 and 2022, Chewy Inc recorded negative ROE figures, with substantial declines in percentage terms. In 2022, the ROE plummeted to -500.93%, indicating a significant loss on equity investments during that period.
Overall, Chewy Inc's profitability ratios highlight fluctuations in operational efficiency, asset utilization, capital deployment, and equity returns over the past five years. Further analysis of the company's financial performance and strategic initiatives may be required to understand the underlying factors driving these fluctuations.