Floor & Decor Holdings Inc (FND)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 42.17% | 40.59% | 41.45% | 42.74% | 42.32% |
| Operating profit margin | 7.29% | 9.32% | 9.88% | 8.86% | 7.81% |
| Pretax margin | 7.07% | 9.06% | 9.74% | 8.56% | 7.37% |
| Net profit margin | 5.58% | 7.01% | 8.25% | 8.05% | 7.39% |
Floor & Decor Holdings Inc has displayed consistent gross profit margins over the past five years, ranging from 40.59% to 42.74%. This indicates the company's ability to effectively manage its cost of goods sold and generate profits from its sales.
However, there is a slight decline in the operating profit margin from 2019 to 2023, dropping from 7.81% to 7.29%. This could suggest that the company's operating expenses have increased relative to its revenue during this period.
The pretax margin also shows a similar trend, decreasing from 7.37% in 2019 to 7.07% in 2023. This indicates that Floor & Decor Holdings Inc's profitability before accounting for taxes has slightly decreased over the past five years.
The net profit margin, which represents the company's bottom-line profitability after all expenses have been deducted, has fluctuated between 5.58% and 8.25% over the same period. The downward trend in the net profit margin from 8.25% in 2021 to 5.58% in 2023 could be a concern for investors as it shows a decline in the company's ability to generate profits relative to its revenue.
Overall, while Floor & Decor Holdings Inc has maintained relatively stable gross profit margins, there are some areas, such as operating profit margin and net profit margin, where the company's profitability has shown some weakness in recent years.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.89% | 9.12% | 9.09% | 7.45% | 6.85% |
| Return on assets (ROA) | 5.28% | 6.85% | 7.59% | 6.77% | 6.48% |
| Return on total capital | 15.12% | 19.23% | 22.32% | 17.90% | 17.55% |
| Return on equity (ROE) | 12.74% | 17.99% | 21.40% | 19.55% | 19.71% |
Floor & Decor Holdings Inc's profitability ratios show a general trend of fluctuation over the past five years. Operating return on assets (Operating ROA) has ranged from 6.85% in 2019 to 9.12% in 2022, indicating the company's ability to generate operating income from its assets. Return on assets (ROA) has varied between 5.28% in 2023 and 7.59% in 2021, reflecting the overall profitability of the company's assets.
Return on total capital has shown a similar fluctuating pattern, with values ranging from 15.12% in 2023 to 22.32% in 2021. This ratio assesses the company's ability to generate returns from all sources of funds, including debt and equity. Return on equity (ROE) has also shown some variability, with values ranging from 12.74% in 2023 to 21.40% in 2021, demonstrating the return earned by the company on shareholders' equity.
Overall, while the profitability ratios of Floor & Decor Holdings Inc have exhibited some fluctuations over the years, the company has generally maintained a solid performance in terms of generating returns from its assets, capital, and equity. It is essential for stakeholders to closely monitor these ratios to assess the company's financial health and performance over time.