John B Sanfilippo & Son Inc (JBSS)

Return on sales

The profitability analysis of John B Sanfilippo & Son Inc. over the specified period indicates variable but generally resilient margins across multiple key financial ratios.

Gross Profit Margin:
The company’s gross profit margin exhibited an upward trend from March 2021, starting at approximately 20.90%, peaking at around 22.65% in September 2021. The margin experienced a gradual decline thereafter, reaching as low as 17.63% in December 2024, before showing slight recovery to approximately 18.38% by June 2025. The fluctuations suggest periods of improved cost control or favorable pricing strategies followed by pressures that tightened margins.

Operating Profit Margin:
Operating margins mirror the gross profit trend to some extent, beginning at just under 10% in March 2021. The margin increased slightly during 2021, reaching just over 10% in September of that year. Subsequently, there was a declining trend, especially notable from March 2022 through December 2024, with margins falling from around 9.10% to a low of approximately 6.22%. Slight improvements are seen in the latest periods, rising back to approximately 7.65% in June 2025, yet remaining below early-year highs. This indicates challenges in managing operating expenses relative to revenue but also some stabilization in recent months.

Pretax Margin:
Pre-tax margins followed a similar pattern, initially rising to over 10% during 2021, then declining from around 8%–9% levels in subsequent periods. The lowest pre-tax margin was approximately 5.72% in December 2024, with a modest recovery to about 7.03% in June 2025. The trend reflects margin pressures impacting pretax profitability, possibly due to increased costs or competitive pricing environments, but also suggests some recent improvement.

Net Profit Margin:
Net profit margins, which incorporate all expenses including taxes, displayed more volatility with a gradual decline over time. Starting at approximately 6.74% in March 2021, margins peaked slightly above 7.5% in September 2021 but declined steadily over the period. The lowest recorded net margin was approximately 4.36% in December 2024. As of June 2025, margins recovered somewhat to around 5.32%, indicating a partial rebound but generally reflecting margin compression trends over the analyzed timeframe.

Summary:
Overall, John B Sanfilippo & Son Inc.'s profitability ratios reveal a period of initial margin strength followed by sustained contraction, particularly evident in gross, operating, pretax, and net margins. The declining trends suggest persistent pressures on profitability, possibly driven by rising costs, competitive pricing, or operational challenges. Recent data shows signs of stabilization and slight recovery, yet margins remain below previous peaks observed in 2021, indicating ongoing headwinds for sustained profitability growth.

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Return on investment

The profitability ratios of John B Sanfilippo & Son Inc exhibit notable trends over the period analyzed. Beginning with the Operating Return on Assets (Operating ROA), the metric experienced fluctuations but generally showed an upward trend from March 2021 to September 2023. Specifically, it rose from approximately 21.26% in March 2021 to a peak of around 23.00% in September 2021, indicating effective operational performance during this period. Post-September 2021, the Operating ROA sustained a relatively stable level, with minor fluctuations, until reaching approximately 21.75% in September 2023. However, beyond this period, the ratio declined sharply, dropping to 19.72% by December 2023 and further down to approximately 14.98% in September 2024, reflecting a significant decrease in operational efficiency. Slight upticks are observed briefly in early 2025, with the ratio reaching 14.18%.

The Return on Assets (ROA), which accounts for overall profitability including non-operational factors, followed a similar pattern but with a generally less volatile trajectory. It increased modestly from about 14.70% in March 2021, peaking near 16.25% in September 2021, and then experienced a gradual decline over the subsequent years. By September 2024, ROA had diminished to approximately 10.46%, indicating reduced overall net profitability relative to total assets, with slight recoveries noted in early 2025 to levels around 9.86%.

Return on Total Capital (ROTC) demonstrated more variability but maintained an overall downward trend from a high of approximately 39.16% in September 2021 to around 20.43% in December 2024. This decline reflects decreasing returns generated on the total invested capital, which could be indicative of reduced efficiency in capital deployment or earnings generation capabilities over the period.

Return on Equity (ROE) displayed the highest volatility among the profitability ratios but generally mirrored the trend of the other metrics. Starting at approximately 24.97% in March 2021, it rose to nearly 29.00% in September 2021, before gradually declining to a low of about 14.97% in December 2024. In 2025, there was a modest recovery to approximately 16.34%, yet the overall trend indicates a waning ability to generate profits relative to shareholders’ equity over the period.

In summary, the company's profitability ratios suggest an initial period of strong operational and net profitability, peaking around late 2021 and early 2022. Subsequently, there has been a noticeable decline across all profitability metrics through 2023 and into 2024, indicative of challenges in maintaining previous levels of efficiency and profitability. The observed downturns could be due to various factors such as increased costs, market dynamics, or operational issues, warranting further analysis into the underlying causes.