Dick’s Sporting Goods Inc (DKS)
Profitability ratios
Return on sales
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 34.83% | 34.88% | 38.47% | 31.96% | 29.12% |
| Operating profit margin | 9.85% | 11.91% | 16.61% | 7.77% | 4.28% |
| Pretax margin | 10.13% | 11.26% | 16.28% | 7.46% | 4.65% |
| Net profit margin | 8.04% | 8.49% | 12.41% | 5.55% | 3.39% |
Dick’s Sporting Goods Inc's profitability ratios have seen some fluctuations over the past five years. The gross profit margin has ranged from 29.12% in 2020 to 38.47% in 2022, indicating variability in the company's ability to control the cost of goods sold.
The operating profit margin, which measures the company's operating efficiency, shows similar fluctuations, ranging from 4.28% in 2020 to 16.61% in 2022. This suggests that Dick’s Sporting Goods Inc has experienced variations in its ability to generate profits from its core operations.
The pretax margin has also shown variability, ranging from 4.65% in 2020 to 16.28% in 2022. This indicates fluctuations in the company's profitability before accounting for taxes and other expenses.
Similarly, the net profit margin, which represents the company's profitability after all expenses have been deducted, has varied from 3.39% in 2020 to 12.41% in 2022. This suggests fluctuations in Dick’s Sporting Goods Inc's ability to generate profits for its shareholders.
Overall, the trend across these profitability ratios indicates that Dick’s Sporting Goods Inc has experienced some volatility in its financial performance over the past five years, with varying levels of profitability and operational efficiency.
Return on investment
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 13.77% | 16.27% | 22.50% | 9.56% | 5.67% |
| Return on assets (ROA) | 11.24% | 11.60% | 16.81% | 6.84% | 4.49% |
| Return on total capital | 49.00% | 56.64% | 79.76% | 26.88% | 19.21% |
| Return on equity (ROE) | 39.99% | 41.32% | 72.32% | 22.66% | 17.18% |
Dick’s Sporting Goods Inc has shown a consistent trend of profitability improvement over the past five years based on the profitability ratios analyzed.
1. Operating return on assets (Operating ROA) has fluctuated but generally increased from 5.67% in 2020 to 13.77% in 2024. This indicates that the company has been able to generate more operating income compared to its assets in recent years.
2. Return on assets (ROA) has also shown an upward trend, increasing from 4.49% in 2020 to 11.24% in 2024. This suggests that Dick’s Sporting Goods has become more efficient in generating profits from its total assets.
3. Return on total capital has significantly improved over the years, with a peak of 79.76% in 2022. This ratio measures the overall return earned on all of the company's invested capital, including debt and equity. The high percentages indicate that the company has been effectively utilizing its capital to generate profits.
4. Return on equity (ROE) has also exhibited positive growth, increasing from 17.18% in 2020 to 39.99% in 2024. This signifies that the company has been successful in generating returns for its shareholders relative to their equity investment.
Overall, the profitability ratios of Dick’s Sporting Goods Inc demonstrate a positive trajectory, indicating improved profitability and efficiency in utilizing its assets and capital over the years.