Dick’s Sporting Goods Inc (DKS)
Profitability ratios
Return on sales
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | |
|---|---|---|---|---|---|
| Gross profit margin | 35.90% | 34.83% | 35.01% | 34.64% | 34.88% |
| Operating profit margin | 10.96% | 9.85% | 9.88% | 11.83% | 11.91% |
| Pretax margin | 11.30% | 10.13% | 10.15% | 11.19% | 11.26% |
| Net profit margin | 8.67% | 8.04% | 8.06% | 8.43% | 8.49% |
Dick’s Sporting Goods Inc has shown consistent improvement in its gross profit margin over the years, increasing from 34.88% in January 28, 2023, to 35.90% by January 31, 2025. This indicates the company's ability to effectively manage its cost of goods sold and generate more gross profit on its sales.
However, the operating profit margin of the company has seen fluctuations, decreasing from 11.91% in January 28, 2023, to 9.85% in February 3, 2024, before slightly rebounding to 10.96% by January 31, 2025. This suggests that Dick’s Sporting Goods Inc may be facing challenges in controlling its operating expenses or improving operational efficiency during certain periods.
Similarly, the pretax margin has also exhibited a downward trend, declining from 11.26% in January 28, 2023, to 10.13% by February 3, 2024, before recovering slightly to 11.30% in January 31, 2025. This indicates that the company's profitability before tax has fluctuated over the years, potentially influenced by factors such as changes in revenue and expenses.
On a positive note, the net profit margin of Dick’s Sporting Goods Inc has remained relatively stable, ranging from 8.04% to 8.67% over the same period. This suggests that the company has been successful in managing its bottom line profitability despite varying operating and tax-related challenges.
In conclusion, while Dick’s Sporting Goods Inc has shown improvement in its gross profit margin, it has faced challenges in maintaining consistent operating and pretax margins. However, the company's ability to sustain a stable net profit margin reflects its resilience in generating profits after all expenses are accounted for.
Return on investment
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 14.09% | 13.77% | 13.77% | 16.27% | 16.27% |
| Return on assets (ROA) | 11.14% | 11.24% | 11.24% | 11.60% | 11.60% |
| Return on total capital | 49.15% | 49.00% | 52.58% | 58.58% | 56.64% |
| Return on equity (ROE) | 36.44% | 39.99% | 39.99% | 41.32% | 41.32% |
Dick’s Sporting Goods Inc has shown a consistent performance in terms of profitability ratios over the specified time period. The Operating Return on Assets (Operating ROA) has remained relatively stable at around 16% in the early years, but experienced a slight decline to around 13-14% in the later years.
Similarly, the Return on Assets (ROA) has also shown a consistent trend, hovering around 11-12% throughout the specified period. This indicates that the company has been effectively generating profits from its assets.
The Return on Total Capital provides insights into how efficiently the company is utilizing its total capital to generate profits. It has gradually decreased from around 57% in early 2023 to around 49% in early 2025. This suggests that the company may be facing challenges in maintaining its profitability relative to the total capital employed.
Lastly, the Return on Equity (ROE) has also exhibited a decline from 41% in early 2023 to around 36% in early 2025. This indicates a diminishing return for the shareholders relative to their equity investment in the company.
Overall, while Dick’s Sporting Goods Inc has maintained a strong profitability performance, the declining trends in some of the ratios suggest there may be changes in the company's efficiency in generating returns from its assets and capital over time.