Performance Food Group Co (PFGC)
Profitability ratios
Return on sales
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | |
|---|---|---|---|---|---|
| Gross profit margin | 11.72% | 11.29% | 10.92% | 10.33% | 11.60% |
| Operating profit margin | 1.29% | 1.42% | 1.34% | 0.64% | 0.66% |
| Pretax margin | 0.72% | 1.02% | 0.95% | 0.33% | 0.18% |
| Net profit margin | 0.54% | 0.75% | 0.69% | 0.22% | 0.13% |
The profitability ratios for Performance Food Group Co over the analyzed period reveal a nuanced view of the company's ability to generate profit relative to sales, costs, and expenses.
Starting with the gross profit margin, there is a modest improvement from 11.60% on June 30, 2021, to 11.72% on June 30, 2025. This indicates a relatively stable ability to retain gross profit from sales, with slight fluctuations showing a consistent core profitability at the gross level, despite a dip to 10.33% in 2022.
The operating profit margin exhibits a more pronounced upward trend, rising from 0.66% in 2021 to a peak of 1.42% in 2024 before a slight decrease to 1.29% in 2025. The increase suggests improved efficiency and control over operating expenses relative to revenues, leading to higher operating profitability over time.
The pretax margin follows a similar trajectory, starting at 0.18% in 2021 and increasing substantially to 1.02% in 2024, before declining to 0.72% in 2025. This pattern reflects enhancements in overall operational profitability before the impact of taxes, though the recent decline indicates potential pressures affecting pre-tax earnings.
Finally, the net profit margin shows considerable growth from 0.13% in 2021 to 0.75% in 2024, followed by a decline to 0.54% in 2025. The improvement indicates a stronger bottom-line performance over the period, ultimately driven by improvements at earlier profit levels. The slight contraction in 2025 suggests some recent challenges impacting net profitability, potentially from increased expenses, taxes, or other factors.
Overall, the company demonstrates a trajectory of increasing profitability ratios from 2021 through 2024, signaling operational improvements and enhanced efficiency. However, the minor declines observed in 2025 emphasize the need for ongoing focus on cost control and margin management to sustain profitability levels.
Return on investment
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.57% | 6.17% | 6.13% | 2.65% | 2.56% |
| Return on assets (ROA) | 1.90% | 3.25% | 3.18% | 0.91% | 0.52% |
| Return on total capital | 0.00% | 20.09% | 20.34% | 10.61% | 9.83% |
| Return on equity (ROE) | 7.61% | 10.56% | 10.60% | 3.41% | 1.93% |
The profitability ratios of Performance Food Group Co over the period from June 30, 2021, to June 30, 2025, exhibit notable fluctuations and trends worth detailed examination.
Starting with the Operating Return on Assets (Operating ROA), there was a modest increase from 2.56% in 2021 to 2.65% in 2022. This improvement was followed by a substantial rise to 6.13% in 2023, maintaining a similar level at 6.17% in 2024 before declining to 4.57% in 2025. The sharp increase in 2023 suggests enhanced operational efficiency or margin improvements during that period, while the subsequent decline indicates some moderation or adjustment in operating profitability.
For the overall Return on Assets (ROA), which includes the effects of financial leverage and non-operating items, a gradual upward trend is evident from 0.52% in 2021 to 0.91% in 2022, with a significant jump to 3.18% in 2023. The ratio remained relatively steady at 3.25% in 2024 before decreasing to 1.90% in 2025. The upward movement through 2023 reflects increased asset efficiency in generating net income, whereas the decline in 2025 suggests a reduction in asset-level profitability.
Return on total capital depicts a strong growth from 9.83% in 2021 to a peak of 20.34% in 2023, slightly declining to 20.09% in 2024 before reaching an unlikely 0.00% in 2025. The latter indicates either an accounting anomaly, a significant change in capital structure, or potential data issues, as such a figure is atypical and warrants further scrutiny.
Finally, the Return on Equity (ROE) demonstrates a gradual increase from 1.93% in 2021 to 3.41% in 2022, then more significantly rising to 10.60% in 2023 and remaining steady at approximately 10.56% in 2024. By 2025, ROE decreases to 7.61%, reflecting a moderation but still maintaining a relatively robust return to shareholders compared to the earlier years.
In summary, Performance Food Group Co experienced substantial improvements in profitability from 2021 through 2023, driven primarily by operational efficiency and asset utilization. The decline observed in 2024 and 2025 suggests either normalization of margins, increased competition, or other operational challenges. The anomaly observed in the Return on Total Capital in 2025 implies a need for further investigation into its capital structure or accounting practices.