Brinker International Inc (EAT)
Profitability ratios
Return on sales
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 63.33% | 62.18% | 62.55% | 64.57% | 60.77% |
| Operating profit margin | 5.20% | 3.49% | 4.19% | 5.97% | 2.03% |
| Pretax margin | 3.73% | 2.20% | 3.03% | 4.35% | 0.16% |
| Net profit margin | 3.52% | 2.48% | 3.09% | 3.94% | 0.79% |
Brinker International Inc's profitability ratios have exhibited a fluctuating trend over the past five years.
1. Gross Profit Margin: The gross profit margin has shown a general stability, ranging between 60.77% and 64.57%. This metric indicates that the company effectively manages its cost of goods sold, with a healthy level of profitability on sales after accounting for direct costs.
2. Operating Profit Margin: The operating profit margin has displayed variability, with a noticeable increase from 2.03% in 2020 to 5.20% in 2024. This indicates improvements in operational efficiency and cost management, resulting in higher profitability from core business activities.
3. Pretax Margin: The pretax margin has also experienced fluctuations, with a significant rise from 0.16% in 2020 to 3.73% in 2024. This suggests better control over operating expenses and an increase in pre-tax profitability over the years.
4. Net Profit Margin: The net profit margin has displayed a similar trend to the pretax margin, indicating that the company has been successful in managing taxes and other income-related aspects, resulting in improved profitability for shareholders.
In summary, while Brinker International Inc's profitability ratios have shown variability, there have been positive trends in operating profit, pretax profit, and net profit margins over the past five years. This indicates that the company has been making effective efforts to enhance profitability through cost control and operational efficiency.
Return on investment
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.85% | 5.81% | 6.42% | 8.76% | 2.66% |
| Return on assets (ROA) | 5.99% | 4.13% | 4.73% | 5.78% | 1.04% |
| Return on total capital | 583.50% | — | — | — | — |
| Return on equity (ROE) | 394.16% | — | — | — | — |
Brinker International Inc's profitability ratios indicate a positive trend in financial performance over the past five years. The Operating Return on Assets (Operating ROA) has shown consistent improvement, increasing from 2.66% in 2020 to 8.85% in 2024. This suggests the company has been effectively utilizing its assets to generate operating income.
Similarly, the Return on Assets (ROA) has also shown improvement, with a steady increase from 1.04% in 2020 to 5.99% in 2024. This indicates that Brinker International has been able to generate more profit from its total assets over the years, reflecting efficient asset management.
The Return on Equity (ROE) has seen a substantial increase, reaching 394.16% in 2024, showing that the company's profitability in relation to shareholders' equity has significantly improved.
It is important to note that the Return on Total Capital and the ROE for years prior to 2024 are not provided, perhaps indicating a change in reporting or data availability. Overall, the improving trend in the profitability ratios of Brinker International Inc suggests effective management strategies and increasing profitability for the company.