Performance Food Group Co (PFGC)
Profitability ratios
Return on sales
| Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 10.97% | 10.37% | 11.65% | 11.49% | 12.77% |
| Operating profit margin | 1.34% | 0.65% | 0.66% | -0.40% | 1.44% |
| Pretax margin | 0.95% | 0.33% | 0.18% | -0.89% | 1.11% |
| Net profit margin | 0.70% | 0.22% | 0.13% | -0.46% | 0.85% |
Performance Food Group Co's profitability ratios show mixed trends over the past five years. The gross profit margin has fluctuated, ranging from 10.37% to 12.77% during this period, with a current value of 10.97% as of June 30, 2023, indicating a slight improvement compared to the previous year.
The operating profit margin has also varied significantly, with the company experiencing negative margins in 2020 and a notable increase to 1.34% in the most recent period. This suggests that Performance Food Group Co has been able to better control its operating expenses and generate higher profits from its core operations.
Similarly, the pretax margin has shown volatility, with a positive upturn to 0.95% in 2023 from negative values in the past. This could indicate improved efficiency in managing costs and generating operating income before accounting for taxes.
The net profit margin, a key indicator of overall profitability, has displayed a similar pattern of inconsistency but has notably increased to 0.70% in 2023, reflecting a positive trend in the company's ability to generate net income relative to its revenue.
Overall, while Performance Food Group Co has shown improvements in its profitability ratios in the most recent period, the company may still face challenges in maintaining consistent profitability over the long term. Further analysis of underlying factors contributing to these trends would be necessary to assess the sustainability of these improvements.
Return on investment
| Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.13% | 2.65% | 2.56% | -1.28% | 6.09% |
| Return on assets (ROA) | 3.18% | 0.91% | 0.52% | -1.48% | 3.58% |
| Return on total capital | 10.58% | 4.86% | 4.76% | -2.47% | 11.34% |
| Return on equity (ROE) | 10.60% | 3.41% | 1.93% | -5.67% | 12.85% |
Performance Food Group Co has shown a positive trend in its profitability ratios over the past five years.
1. Operating return on assets (Operating ROA) has improved steadily from -1.28% in 2020 to 6.13% in 2023, indicating that the company is generating higher operating profits relative to its total assets.
2. Return on assets (ROA) has also shown a positive trend, increasing from -1.48% in 2020 to 3.18% in 2023. This ratio measures the company's overall efficiency in utilizing its assets to generate profits.
3. Return on total capital has consistently improved over the years, reaching 10.58% in 2023 from -2.47% in 2020. This indicates that the company is generating higher returns relative to its total capital employed.
4. Return on equity (ROE) has shown a similar positive trend, increasing from -5.67% in 2020 to 10.60% in 2023. This ratio reflects the company's ability to generate profits from the shareholders' equity investment.
Overall, the improving trend in these profitability ratios reflects positively on Performance Food Group Co's financial performance and efficiency in utilizing its assets and capital to generate returns for its shareholders.