National Vision Holdings Inc (EYE)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | -2.14% | 2.99% | 8.32% | 2.24% | 1.86% |
| Operating profit margin | -2.20% | 3.05% | 8.41% | 5.23% | 4.38% |
| Pretax margin | -2.90% | 3.03% | 7.18% | 2.33% | 1.82% |
| Net profit margin | -3.10% | 2.10% | 6.17% | 2.18% | 1.95% |
National Vision Holdings Inc has shown a decline in profitability ratios over the past five years. The gross profit margin has fluctuated, with negative margins in 2023 and 2020, indicating a decrease in the company's ability to generate profit after accounting for the cost of goods sold. The operating profit margin has also experienced a decline, with negative margins in 2023, suggesting inefficiencies in managing operating expenses.
Similarly, the pretax margin has shown a decreasing trend, with a negative margin in 2023, indicating that the company's profitability before accounting for taxes has been impacted. The net profit margin, which represents the bottom-line profitability, has also decreased over the years, with negative margins in 2023, reflecting a decline in earnings relative to sales.
Overall, National Vision Holdings Inc's profitability ratios reveal a concerning trend of decreasing profitability over the years, which may indicate challenges in managing costs, generating revenue, or both. Further analysis of the company's financial performance and operational strategies is recommended to address these profitability issues.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -2.16% | 2.67% | 7.63% | 3.73% | 3.62% |
| Return on assets (ROA) | -3.03% | 1.84% | 5.59% | 1.55% | 1.61% |
| Return on total capital | -3.70% | 4.23% | 11.90% | 5.68% | 5.65% |
| Return on equity (ROE) | -7.95% | 4.67% | 13.85% | 4.00% | 4.22% |
National Vision Holdings Inc's profitability ratios have displayed fluctuations over the past five years. In terms of operating profitability, the company's Operating ROA has shown inconsistency, with a notable decrease to -2.16% in 2023 from 7.63% in 2021. This indicates a decline in the ability of the company to generate operating income from its assets.
The overall profitability, as measured by ROA, has also been volatile, dropping to -3.03% in 2023 compared to 5.59% in 2021. This suggests that the company's ability to generate earnings from its total assets has weakened.
Return on total capital and Return on equity (ROE) ratios reflect a similar trend of fluctuation. The Return on total capital decreased to -3.70% in 2023 from 11.90% in 2021, while the ROE dropped to -7.95% in 2023 from 13.85% in 2021. These declines indicate a decrease in the company's profitability in generating returns for both its total capital and equity.
Overall, National Vision Holdings Inc's profitability ratios demonstrate irregular performance over the years, signaling potential challenges in generating profits from its assets and equity. Further analysis into the company's operations and financial management may be necessary to understand the factors contributing to these fluctuations.