Five Below Inc (FIVE)
Profitability ratios
Return on sales
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 10.32% | 35.61% | 36.18% | 33.25% | 36.50% |
| Operating profit margin | 10.83% | 11.22% | 13.34% | 7.89% | 11.77% |
| Pretax margin | 11.27% | 11.30% | 12.87% | 7.80% | 12.00% |
| Net profit margin | 8.46% | 8.50% | 9.79% | 6.29% | 9.48% |
The profitability ratios of Five Below Inc show fluctuations over the past five years. The gross profit margin has experienced a significant decline from 36.50% in 2020 to 10.32% in 2024, indicating a decrease in the percentage of revenue remaining after accounting for the cost of goods sold. This trend suggests challenges in managing production or sourcing costs.
The operating profit margin has been relatively stable, with a slight decrease from 11.77% in 2020 to 10.83% in 2024. This ratio reflects the company's ability to control operating expenses in relation to sales revenue, showing a consistent operational efficiency over the years.
The pretax margin has shown fluctuations, reaching its lowest point of 7.80% in 2021 and rebounding to 11.27% in 2024. This ratio indicates the company's ability to generate profits before taxes relative to total revenue, reflecting changes in tax liabilities and operational performance.
The net profit margin has varied, with a decrease from 9.48% in 2020 to 8.46% in 2024. This ratio represents the company's profitability after all expenses, including taxes. The declining trend suggests challenges in maintaining a healthy bottom line.
Overall, Five Below Inc has demonstrated mixed profitability performance over the years, facing challenges in maintaining gross profit margins while showing relative stability in operating profit margins. It is essential for the company to focus on improving cost efficiency and revenue generation strategies to enhance overall profitability in the future.
Return on investment
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.96% | 10.38% | 13.19% | 6.69% | 11.09% |
| Return on assets (ROA) | 7.78% | 7.87% | 9.68% | 5.33% | 8.94% |
| Return on total capital | 24.33% | 25.33% | 33.91% | 17.55% | 28.60% |
| Return on equity (ROE) | 19.00% | 19.20% | 24.89% | 13.99% | 23.04% |
Five Below Inc's profitability ratios show a consistent trend of strong performance over the past five years. The Operating Return on Assets (Operating ROA) has ranged from 6.69% to 13.19%, indicating that the company generates a solid return from its operating activities relative to its assets. The Return on Assets (ROA) has also been healthy, ranging from 5.33% to 9.68%, further demonstrating the company's ability to generate profits from its total assets.
Moreover, the Return on Total Capital has shown significant growth, ranging from 17.55% to 33.91%, indicating that Five Below Inc efficiently utilizes its total capital to generate returns for its stakeholders. The Return on Equity (ROE) has also been robust, ranging from 13.99% to 24.89%, showing the company's ability to generate returns for its equity shareholders.
Overall, the profitability ratios suggest that Five Below Inc has been consistently profitable and effective in leveraging its assets and capital to generate returns for both its investors and operations.