Leslies Inc (LESL)
Profitability ratios
Return on sales
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 38.70% | 39.07% | 41.63% | 43.03% | 43.74% | 43.98% | 43.93% | 44.95% | 45.21% | 45.80% |
| Operating profit margin | 6.73% | 7.28% | 10.09% | 13.29% | 14.60% | 15.59% | 15.18% | 15.62% | 16.46% | 16.09% |
| Pretax margin | 1.71% | 2.62% | 6.11% | 10.22% | 12.21% | 13.59% | 13.21% | 13.43% | 13.91% | 12.55% |
| Net profit margin | 1.30% | 1.94% | 4.73% | 7.80% | 9.33% | 10.38% | 9.92% | 10.18% | 10.54% | 9.75% |
The profitability ratios of Leslies Inc, as indicated by the gross profit margin, have been declining steadily over the past few quarters, from 45.80% at the end of Q3 2021 to 38.70% at the end of Q4 2023. This trend suggests that the company's ability to generate profit from its core business operations has weakened.
The operating profit margin, which reflects the company's ability to control operating expenses, has also shown a declining trend from 16.09% in Q3 2021 to 6.73% in Q4 2023. This indicates that the company may be facing challenges in managing its operational costs efficiently.
Similarly, the pretax margin has decreased from 13.91% in Q3 2021 to 1.71% in Q4 2023, signaling a decline in the company's ability to generate profit before taxes. This could be a result of lower revenue or higher expenses impacting the company's overall profitability.
The net profit margin, which measures the company's bottom line profitability, has also shown a decreasing pattern from 10.54% in Q3 2021 to 1.30% in Q4 2023. This implies that after accounting for all expenses, including taxes, Leslies Inc is earning less profit on each dollar of sales.
Overall, the declining trend in all profitability ratios indicates potential financial challenges for Leslies Inc, requiring a thorough review of its cost structure, pricing strategy, and revenue generation to improve its profitability in the future.
Return on investment
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.28% | 9.88% | 12.90% | 17.45% | 20.82% | 21.52% | 19.95% | 23.34% | 27.41% | 20.06% |
| Return on assets (ROA) | 1.80% | 2.63% | 6.04% | 10.24% | 13.30% | 14.33% | 13.04% | 15.21% | 17.56% | 12.15% |
| Return on total capital | 16.17% | 16.70% | 24.66% | 38.96% | 40.58% | 40.97% | 42.47% | 54.19% | 54.00% | 34.74% |
| Return on equity (ROE) | — | — | — | — | — | — | — | — | — | — |
The profitability ratios of Leslies Inc over the specified periods demonstrate a varying trend. The operating return on assets (Operating ROA) ranges from 9.28% to 27.41%, with a sharp decline in the most recent period. This indicates the company's ability to generate operating income from its assets has fluctuated over time.
The return on assets (ROA) also fluctuates, ranging from 1.80% to 17.56%. The ROA saw a steady increase from 2021 to 2023, showing the company's efficiency in generating profit from its total assets, with a peak in March 2023.
The return on total capital shows significant fluctuations ranging from 16.17% to 54.19%. This ratio reveals the overall return earned by the company on its total capital employed, including both debt and equity. The highest return on total capital was observed in March 2022, indicating a period of high profitability relative to the capital invested.
Unfortunately, the data provided for return on equity (ROE) is missing, which is a key indicator of a company's profitability from the perspective of common equity shareholders. As a result, a comprehensive analysis of Leslies Inc's profitability based on ROE cannot be provided with the information given.
In conclusion, Leslies Inc's profitability ratios fluctuate over the specified periods, with varying levels of return on assets and total capital. Further analysis, particularly on Return on Equity, would be necessary to provide a complete picture of the company's profitability.