Fox Factory Holding Corp (FOXF)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 32.10% | 33.23% | 33.52% | 32.90% | 32.45% |
| Operating profit margin | 11.05% | 15.43% | 15.27% | 12.97% | 15.08% |
| Pretax margin | 9.57% | 14.62% | 14.61% | 11.76% | 14.32% |
| Net profit margin | 8.34% | 12.84% | 12.70% | 10.30% | 12.44% |
The profitability ratios of Fox Factory Holding Corp have exhibited some fluctuations over the five-year period from 2019 to 2023.
The Gross Profit Margin, which indicates the percentage of revenue that exceeds the cost of goods sold, has been relatively stable around the early 30% range, with a slight decrease from 2019 to 2023.
The Operating Profit Margin, which represents the percentage of each dollar of revenue that results in operating income, shows more variability, peaking in 2022 before declining in 2023. This could suggest that operational expenses increased relative to revenue in the most recent year.
The Pretax Margin, which reflects the company's profitability before taxes, also demonstrates fluctuations over the period, with a notable decrease in 2023 compared to the peak in 2022.
The Net Profit Margin, which measures the proportion of revenue that remains as net income after all expenses are deducted, follows a similar trend to the Pretax Margin, with a decrease in profitability seen in 2023 compared to the peak in 2022.
Overall, while the company has maintained relatively healthy profitability margins, there are signs of some recent decline in profitability in 2023 compared to the prior years, which may warrant further investigation into the company's cost structure and operational efficiency.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.14% | 15.24% | 12.99% | 8.87% | 18.51% |
| Return on assets (ROA) | 5.39% | 12.68% | 10.81% | 7.05% | 15.27% |
| Return on total capital | 9.90% | 21.64% | 15.66% | 10.29% | 26.13% |
| Return on equity (ROE) | 9.89% | 18.31% | 18.32% | 12.61% | 22.04% |
The profitability ratios of Fox Factory Holding Corp have shown fluctuations over the past five years.
- Operating return on assets (Operating ROA) decreased from 18.51% in 2019 to 7.14% in 2023, indicating a decrease in the company's ability to generate operating profit from its assets.
- Return on assets (ROA) followed a similar trend, declining from 15.27% in 2019 to 5.39% in 2023, suggesting a lower overall profitability in relation to total assets.
- Return on total capital decreased from 26.13% in 2019 to 9.90% in 2023, indicating a reduced return generated on the total invested capital.
- Return on equity (ROE) also demonstrated a fluctuating pattern, declining from 22.04% in 2019 to 9.89% in 2023, reflecting a lower return on shareholder equity over the years.
Overall, the downward trend in these profitability ratios implies potential challenges in generating profits efficiently and effectively utilizing the company's assets and capital. Further analysis and context are needed to understand the underlying reasons for these changes and to assess the company's overall financial performance.