Five Below Inc (FIVE)

Net profit margin

		Feb 3, 2024	Oct 28, 2023	Jul 29, 2023	Apr 29, 2023	Jan 28, 2023	Oct 29, 2022	Jul 30, 2022	Apr 30, 2022	Jan 29, 2022	Oct 30, 2021	Jul 31, 2021	May 1, 2021	Jan 30, 2021	Oct 31, 2020	Aug 1, 2020	May 2, 2020	Feb 1, 2020	Nov 2, 2019	Aug 3, 2019	May 4, 2019
Net income (ttm)	US$ in thousands	301,106	270,227	271,779	266,288	261,528	230,404	238,435	261,932	278,810	262,551	258,799	223,539	123,361	109,798	99,562	98,812	175,056	78,198	93,072	86,045
Revenue (ttm)	US$ in thousands	3,559,373	3,344,383	3,253,012	3,162,958	3,076,307	2,949,889	2,912,500	2,890,127	2,848,354	2,710,536	2,579,505	2,359,061	1,962,137	1,790,753	1,691,577	1,682,867	1,846,730	1,472,423	1,442,719	1,321,641
Net profit margin		8.46%	8.08%	8.35%	8.42%	8.50%	7.81%	8.19%	9.06%	9.79%	9.69%	10.03%	9.48%	6.29%	6.13%	5.89%	5.87%	9.48%	5.31%	6.45%	6.51%

February 3, 2024 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $301,106K ÷ $3,559,373K
= 8.46%

The net profit margin of Five Below Inc has shown some fluctuations over the past several quarters. The net profit margin measures the company's profitability by indicating how much of each dollar of revenue translates into profit after all expenses are accounted for.

From November 2019 to July 2021, the net profit margin remained relatively stable, ranging between 9.48% and 10.03%, indicating consistent profitability during this period. However, there was a noticeable drop in profitability in the following quarters, with net profit margins falling to as low as 5.87% in May 2020.

Subsequently, there was some recovery in the net profit margin, with values ranging between 7.81% and 9.79% from August 2020 to January 2022. The highest net profit margin of 9.79% was achieved in January 2022, suggesting improved profitability during that period.

However, the net profit margin declined again in the later quarters, reaching 6.29% in May 2022 and further dropping to 5.89% in July 2022. It then increased to 9.06% in April 2023 before slightly decreasing in the following quarters.

Overall, the net profit margin of Five Below Inc has displayed variations over the analyzed period, indicating shifts in profitability levels. Further analysis of the company's financial performance and cost management strategies may help understand the factors contributing to these fluctuations and guide future decision-making.