National Vision Holdings Inc (EYE)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 58.10% | 52.93% | 53.85% | 56.49% | 54.05% |
| Operating profit margin | -0.57% | -2.20% | 3.06% | 8.41% | 5.08% |
| Pretax margin | -1.41% | -2.90% | 3.03% | 7.18% | 2.26% |
| Net profit margin | -1.56% | -3.10% | 2.10% | 6.17% | 2.12% |
National Vision Holdings Inc's profitability ratios show fluctuations over the years. The gross profit margin, which represents the percentage of revenue retained after deducting the cost of goods sold, increased from 54.05% in 2020 to 58.10% in 2024, indicating improved efficiency in production and pricing.
However, the operating profit margin, measuring the company's ability to generate profits from its core operations, fluctuated significantly. It rose from 5.08% in 2020 to 8.41% in 2021, but then declined to -0.57% in 2024, suggesting challenges in controlling operating expenses.
Similarly, the pretax margin, reflecting the profitability after accounting for all operating expenses but before taxes, followed an inconsistent pattern. It peaked at 7.18% in 2021 but plunged to -1.41% in 2024, indicating potential issues in managing costs and revenue.
The net profit margin, which shows the company's bottom-line profitability after all expenses have been deducted, also experienced substantial variations. It increased from 2.12% in 2020 to 6.17% in 2021 before dropping to -1.56% in 2024, signaling difficulties in maintaining a consistent level of profitability.
Overall, National Vision Holdings Inc's profitability ratios demonstrate a mix of positive and negative trends, highlighting the importance of closely monitoring cost control, revenue generation, and operational efficiency.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -0.52% | -2.16% | 2.67% | 7.63% | 3.73% |
| Return on assets (ROA) | -1.42% | -3.03% | 1.84% | 5.59% | 1.55% |
| Return on total capital | -1.16% | -5.44% | 6.80% | 18.89% | 9.60% |
| Return on equity (ROE) | -3.49% | -7.95% | 4.67% | 13.85% | 4.00% |
Based on the provided data, National Vision Holdings Inc's profitability ratios have fluctuated over the years.
1. Operating Return on Assets (Operating ROA):
- The Operating ROA increased from 3.73% in December 2020 to a peak of 7.63% in December 2021. However, the ratio declined to 2.67% in December 2022, turned negative in December 2023 (-2.16%), and further decreased to -0.52% by December 2024. This indicates a volatility in the company's operating performance in generating profits from its assets.
2. Return on Assets (ROA):
- The ROA also showed variation, starting at 1.55% in December 2020 and reaching its peak at 5.59% in December 2021. However, it declined, turning negative in December 2023 (-3.03%) and decreasing further to -1.42% by December 2024. This suggests a decrease in the company's efficiency in generating profits relative to its total assets.
3. Return on Total Capital:
- The Return on Total Capital ratio increased from 9.60% in December 2020 to a high of 18.89% in December 2021. However, it declined significantly to -5.44% in December 2023 and then improved slightly to -1.16% by December 2024. This indicates fluctuations in the company's ability to generate returns from its total invested capital.
4. Return on Equity (ROE):
- The ROE also displayed variability, starting at 4.00% in December 2020, peaking at 13.85% in December 2021, and then declining to -7.95% in December 2023 and further to -3.49% in December 2024. This shows fluctuations in the company's ability to generate returns for its shareholders.
Overall, the profitability ratios of National Vision Holdings Inc have shown fluctuations and a downward trend in recent years, reflecting challenges in maintaining consistent profitability and efficiency in utilizing assets and capital. Further analysis and investigation may be needed to identify the underlying causes and potential strategies for improvement.