Leslies Inc (LESL)
Profitability ratios
Return on sales
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | |
|---|---|---|---|---|
| Gross profit margin | 35.85% | 39.56% | 43.98% | 45.80% |
| Operating profit margin | 4.29% | 7.37% | 15.59% | 16.09% |
| Pretax margin | -1.00% | 2.65% | 13.59% | 12.55% |
| Net profit margin | -1.76% | 1.97% | 10.38% | 9.75% |
Leslies Inc's profitability ratios have shown a declining trend over the past four years. The gross profit margin decreased from 45.80% in 2021 to 35.85% in 2024, indicating the company's ability to generate profits from its core operations has weakened. This decline may be due to increased costs or pricing pressures.
Similarly, the operating profit margin has decreased from 16.09% in 2021 to 4.29% in 2024. This suggests that the company's operating expenses have increased relative to its sales, impacting its ability to generate profits before interest and taxes.
The pretax margin, which reflects profitability before taxes, also declined over the period. The negative pretax margin of -1.00% in 2024 indicates that the company's operating expenses and interest costs surpassed its operating income. This could signal financial challenges or inefficient cost management within the company.
Furthermore, the net profit margin, which represents the company's profitability after all expenses have been deducted, has also shown a declining trend, falling from 9.75% in 2021 to -1.76% in 2024. This indicates that the company is experiencing net losses, which could be attributed to a combination of factors such as declining revenues, higher expenses, or inefficient operations.
In summary, the profitability ratios of Leslies Inc have deteriorated over the years, reflecting potential challenges in maintaining and improving the company's profitability. The company may need to closely examine its cost structure, revenue generation strategies, and overall operational efficiency to address these declining trends and enhance its profitability in the future.
Return on investment
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | |
|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.44% | 9.88% | 21.52% | 20.06% |
| Return on assets (ROA) | -2.23% | 2.63% | 14.33% | 12.15% |
| Return on total capital | 9.65% | 16.70% | 40.97% | 34.74% |
| Return on equity (ROE) | — | — | — | — |
Looking at Leslies Inc's profitability ratios, we can see a fluctuating trend over the past four years.
- Operating return on assets (Operating ROA) has decreased from 20.06% in 2021 to 5.44% in 2024. This indicates that the company's ability to generate operating income from its assets has declined significantly.
- Return on assets (ROA) has also shown a negative trend, moving from 12.15% in 2021 to -2.23% in 2024. This suggests that the company's overall profitability in relation to its total assets has deteriorated.
- Return on total capital has decreased from 34.74% in 2021 to 9.65% in 2024. This indicates that the company's ability to generate returns from its total capital employed has decreased over the years.
Unfortunately, the data for Return on Equity (ROE) is missing, which prevents us from evaluating the company's profitability in relation to its shareholders' equity specifically.
In summary, Leslies Inc's profitability ratios have witnessed a declining trend over the past few years, which may indicate potential challenges in generating profits from the company's assets and capital. Further analysis and investigation into the company's financial performance and operational efficiency may be necessary to understand the underlying causes of these trends.