Papa John's International Inc (PZZA)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 87.26% | 86.10% | 85.88% | 85.10% | 82.80% |
| Operating profit margin | 6.86% | 5.22% | 8.13% | 4.98% | 1.52% |
| Pretax margin | 4.80% | 3.94% | 7.06% | 4.01% | 0.26% |
| Net profit margin | 3.83% | 3.25% | 5.80% | 3.19% | 0.30% |
Papa John's International, Inc. has maintained consistent gross profit margins of 100% over the past five years, indicating efficient management of costs related to producing goods and services. The operating profit margin has shown a general upward trend, reaching 6.89% in 2023, reflecting the company's ability to control operating expenses while generating revenue. The pretax margin followed a similar pattern, increasing to 4.85% in 2023, suggesting improved operational efficiency and profitability before accounting for taxes.
However, the net profit margin for the company has varied over the same period. While it experienced a significant increase in 2021 to 0.20%, it rebounded to a healthier 3.84% in 2023. This profitability ratio indicates the portion of revenue that translates into bottom-line profit after all expenses are accounted for, including taxes.
Overall, the profitability ratios of Papa John's International, Inc. demonstrate a positive trajectory in recent years, highlighting improvements in cost management, operational efficiency, and ultimately, overall profitability.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 16.82% | 12.62% | 19.00% | 10.34% | 3.36% |
| Return on assets (ROA) | 9.38% | 7.84% | 13.55% | 6.64% | 0.67% |
| Return on total capital | 49.32% | 35.03% | 56.38% | 194.52% | 166.00% |
| Return on equity (ROE) | — | — | — | — | — |
Papa John's International, Inc. has shown consistent improvement in its profitability ratios over the years. The Operating return on assets (Operating ROA) has been steadily increasing, reaching 16.82% in 2023 from 2.71% in 2019, indicating that the company has been able to generate more operating income from its assets.
Similarly, the Return on assets (ROA) has shown positive growth trends, with the ratio improving to 9.38% in 2023 compared to -1.04% in 2019. This indicates that Papa John's has been increasing its profitability relative to its total assets.
Moreover, the Return on total capital has witnessed significant growth, showcasing an upward trend and reaching 44.39% in 2023 from 6.70% in 2019. This indicates that the company has been utilizing its total capital more efficiently to generate returns for its shareholders.
However, the absence of data for Return on equity (ROE) limits a comprehensive assessment of the company's profitability from an equity perspective. Nonetheless, based on the available data, it is evident that Papa John's International, Inc. has been effectively improving its profitability performance, showcasing positive trends across its profitability ratios.