Grocery Outlet Holding Corp (GO)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 31.49% | 30.69% | 30.94% | 31.24% | 31.37% |
| Operating profit margin | 3.19% | 2.67% | 2.91% | 3.45% | 2.72% |
| Pretax margin | 2.64% | 2.13% | 2.53% | 2.80% | 0.67% |
| Net profit margin | 2.01% | 1.83% | 2.03% | 3.42% | 0.61% |
The profitability ratios of Grocery Outlet Holding Corp show varying trends over the past five years. The gross profit margin has been relatively stable, hovering around the low 30% range, indicating consistent management of cost of goods sold.
However, the operating profit margin shows some fluctuations, with a slight increase in 2023 compared to the previous year. This suggests that while the company has managed to improve its operating efficiency in the most recent year, there may have been challenges in previous years.
The pretax margin also demonstrates fluctuations over the years, with a peak in 2021 followed by a decrease in 2022 before slightly rising again in 2023. This indicates that the company's ability to generate profits before taxes has been inconsistent.
The net profit margin, which represents the bottom line profitability, has also shown variability, with a significant decrease in 2023 compared to the previous year. This suggests that despite generating higher revenues, the company may have experienced increased expenses or other factors affecting its net profitability.
Overall, while Grocery Outlet Holding Corp has maintained a relatively stable gross profit margin, there are fluctuations in its operating, pretax, and net profit margins, indicating potential challenges in managing expenses and generating profits consistently over the past five years. Further analysis of the company's cost management strategies and revenue streams may be warranted to understand these fluctuations in profitability ratios.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.24% | 3.43% | 3.34% | 4.32% | 3.13% |
| Return on assets (ROA) | 2.68% | 2.35% | 2.33% | 4.29% | 0.71% |
| Return on total capital | 8.35% | 6.38% | 8.83% | 11.64% | 9.17% |
| Return on equity (ROE) | 6.51% | 5.86% | 6.17% | 11.57% | 2.07% |
Based on the profitability ratios of Grocery Outlet Holding Corp over the past five years, we observe the following trends:
1. Operating return on assets (Operating ROA) has shown a fluctuating pattern, with a peak of 4.32% in 2020 and a low of 3.13% in 2019. The ratio improved in 2023 to 4.24% from 2022's 3.43%.
2. Return on assets (ROA) has also varied over the years, with a significant increase to 4.29% in 2020, followed by a decline to 2.68% in 2023, after hitting lows of 0.71% in 2019.
3. Return on total capital reflects the company's ability to generate profits from both equity and debt sources. The ratio has shown fluctuations with a high of 11.64% in 2020 and a low of 6.38% in 2022. In 2023, the return on total capital improved to 8.35%.
4. Return on equity (ROE) measures the return generated for the company's shareholders. Grocery Outlet Holding Corp's ROE has fluctuated significantly, with a peak of 11.57% in 2020 and a low of 2.07% in 2019. In 2023, the ratio showed improvement to 6.51% from 2022's 5.86%.
Overall, while the profitability ratios of Grocery Outlet Holding Corp have fluctuated over the years, there is potential for improvement in efficiently utilizing assets and generating returns for both shareholders and capital providers. Further analysis of the company's operations and financial strategies would be necessary to determine factors impacting these profitability metrics.