Floor & Decor Holdings Inc (FND)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 43.28% | 42.10% | 40.51% | 41.42% | 42.66% |
| Operating profit margin | 5.75% | 7.28% | 9.30% | 9.87% | 8.85% |
| Pretax margin | 5.69% | 7.06% | 9.04% | 9.73% | 8.54% |
| Net profit margin | 4.62% | 5.57% | 6.99% | 8.25% | 8.04% |
Floor & Decor Holdings Inc's profitability ratios have shown a mixed performance over the years.
- The gross profit margin decreased from 42.66% in December 31, 2020, to 41.42% in December 31, 2021, and further dropped to 40.51% in December 31, 2022. However, there was an improvement in the gross profit margin to 42.10% in December 31, 2023, and 43.28% in December 31, 2024, indicating an upward trend in the company's ability to generate profit from sales.
- The operating profit margin also exhibited some fluctuations, with a slight increase from 8.85% in December 31, 2020, to 9.87% in December 31, 2021, followed by a decline to 9.30% in December 31, 2022. Subsequently, there was a more significant decrease to 7.28% in December 31, 2023, and 5.75% in December 31, 2024, suggesting a decreasing trend in profitability at the operating level.
- The pretax margin saw a similar pattern, starting at 8.54% in December 31, 2020, increasing to 9.73% in December 31, 2021, but then declining to 9.04% in December 31, 2022. This downward trend continued with a further decrease to 7.06% in December 31, 2023, and 5.69% in December 31, 2024, indicating decreasing profit margins before taxes.
- The net profit margin displayed a consistent decline over the years, starting at 8.04% in December 31, 2020, dropping to 8.25% in December 31, 2021, and further decreasing to 6.99% in December 31, 2022. The decline continued with a further drop to 5.57% in December 31, 2023, and 4.62% in December 31, 2024. This downward trend suggests that the company's profitability after all expenses and taxes has been steadily decreasing.
In conclusion, Floor & Decor Holdings Inc has experienced fluctuations and declining trends in its profitability ratios over the years, highlighting the need for further analysis and potential strategic actions to improve overall profitability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.07% | 6.89% | 9.12% | 9.09% | 7.45% |
| Return on assets (ROA) | 4.08% | 5.28% | 6.85% | 7.59% | 6.77% |
| Return on total capital | 0.00% | 16.65% | 23.94% | 25.62% | 21.51% |
| Return on equity (ROE) | 9.49% | 12.74% | 17.99% | 21.40% | 19.55% |
Floor & Decor Holdings Inc's profitability ratios depict a mixed performance over the past five years.
1. Operating return on assets (Operating ROA) shows a slight improvement from 7.45% in December 2020 to 9.12% in December 2022, before decreasing to 5.07% by the end of December 2024. This ratio indicates the company's ability to generate profits from its assets solely from its core operations.
2. Return on assets (ROA) follows a similar trend, starting at 6.77% in December 2020, peaking at 7.59% in December 2021, and then declining to 4.08% by December 2024. ROA reflects the overall effectiveness of Floor & Decor in utilizing its assets to generate profits.
3. Return on total capital was substantial in December 2020 at 21.51%, rose to 25.62% in December 2021, but experienced a sharp decline to 0.00% by December 2024. This metric measures the company's ability to generate returns for both debt and equity holders.
4. Return on equity (ROE) decreased from 19.55% in December 2020 to 9.49% in December 2024, with fluctuations in between. ROE signifies the profitability generated for the shareholders based on the equity invested in the company.
Overall, while there were periods of improvement in profitability ratios, the downward trends in some ratios towards the end of the period suggest challenges in maintaining or enhancing profitability levels for Floor & Decor Holdings Inc.