Foot Locker Inc (FL)
Profitability ratios
Return on sales
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 1.53% | 7.13% | 34.43% | 28.95% | 31.78% |
| Operating profit margin | 1.74% | 6.63% | 9.73% | 4.10% | 8.11% |
| Pretax margin | -5.18% | 5.96% | 13.87% | 6.55% | 8.40% |
| Net profit margin | -4.04% | 3.90% | 9.98% | 4.28% | 6.14% |
Foot Locker Inc's profitability ratios have shown fluctuations over the past five years:
- Gross profit margin has notably decreased from 34.43% in 2022 to 1.53% in 2024, indicating a significant decline in the percentage of sales revenue retained after deducting the cost of goods sold.
- Operating profit margin has also followed a decreasing trend, having dropped from 9.73% in 2022 to 1.74% in 2024, indicating that the company's operating expenses have been less effectively controlled relative to its sales.
- Pretax margin has experienced significant volatility, with a negative value of -5.18% in 2024, suggesting that the company's profitability before accounting for taxes has deteriorated substantially compared to the previous years.
- Net profit margin has shown a similar downward trajectory, declining from 9.98% in 2022 to -4.04% in 2024, highlighting the decrease in the proportion of sales revenue that translates into net income for Foot Locker Inc.
Overall, the declining trend in profitability ratios suggests that Foot Locker Inc may be facing challenges in maintaining its profitability levels, which could be attributed to various factors such as increased expenses, competitive pressures, or changes in consumer behavior. Further analysis of the company's financial performance and strategic initiatives may be necessary to address these challenges and improve its overall profitability.
Return on investment
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 2.07% | 7.35% | 10.69% | 4.39% | 9.85% |
| Return on assets (ROA) | -4.80% | 4.33% | 10.98% | 4.59% | 7.45% |
| Return on total capital | 4.32% | 15.75% | 23.92% | 10.74% | 25.01% |
| Return on equity (ROE) | -11.42% | 10.39% | 27.54% | 11.64% | 19.85% |
Foot Locker Inc's profitability ratios exhibit some fluctuations over the past five years.
- The Operating Return on Assets (Operating ROA) decreased from 10.69% in January 2022 to 2.07% in February 2024, indicating a decline in the company's efficiency in generating operating income from its assets.
- The Return on Assets (ROA) was notably negative at -4.80% in February 2024, implying that the company incurred a loss relative to its total assets for that period. This represents a significant decrease compared to previous years, where positive ROA figures were reported.
- The Return on Total Capital decreased from 23.92% in January 2022 to 4.32% in February 2024, indicating a decline in the company's ability to generate returns for both debt and equity holders over the period.
- The Return on Equity (ROE) also experienced fluctuations, with a sharp decline from 27.54% in January 2022 to -11.42% in February 2024. This indicates a negative return for equity holders, reflecting the company's struggles in generating profits attributable to shareholders' equity.
Overall, these profitability ratios suggest a mixed performance for Foot Locker Inc, with a need to address operational efficiency and profitability challenges to enhance returns for both asset and equity holders in the future.