Papa John's International Inc (PZZA)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 28.21% | 30.77% | 18.58% | 20.76% | 18.98% |
| Operating profit margin | 7.61% | 6.89% | 5.19% | 8.13% | 4.98% |
| Pretax margin | 5.54% | 4.85% | 3.99% | 7.30% | 4.16% |
| Net profit margin | 4.05% | 3.84% | 3.22% | 5.80% | 3.19% |
Papa John's International Inc has shown variability in its profitability margins over the years. The gross profit margin, which indicates the percentage of revenue remaining after deducting the cost of goods sold, increased from 18.98% in 2020 to 28.21% in 2024. This suggests that the company improved its efficiency in managing production costs and pricing strategies.
The operating profit margin, a measure of the company's ability to generate profit from its core operations, also saw an upward trend, rising from 4.98% in 2020 to 7.61% in 2024. This indicates that Papa John's effectively controlled its operating expenses and operating income increased over the period.
Similarly, the pretax margin, which represents the percentage of each dollar of revenue that translates into pre-tax profit, showed growth from 4.16% in 2020 to 5.54% in 2024. This reflects the company's ability to manage its overall expenses and enhance profitability before tax considerations.
Finally, the net profit margin, reflecting the percentage of revenue that translates into net income, improved from 3.19% in 2020 to 4.05% in 2024. This indicates that Papa John's was successful in managing both operating and non-operating expenses to generate higher net profit relative to its total revenue.
Overall, the increasing trend in profitability margins across these categories suggests that Papa John's International Inc has been successful in enhancing its operational efficiency and overall profitability over the analyzed period.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 17.63% | 16.82% | 12.62% | 19.00% | 10.34% |
| Return on assets (ROA) | 9.37% | 9.38% | 7.84% | 13.55% | 6.64% |
| Return on total capital | — | — | — | — | — |
| Return on equity (ROE) | — | — | — | — | — |
Papa John's International Inc has shown a positive trend in profitability ratios over the five-year period from 2020 to 2024.
- Operating return on assets (Operating ROA) has steadily improved, starting at 10.34% in 2020 and reaching 17.63% in 2024. This indicates that the company has been able to generate more profits from its operating activities relative to its total assets.
- Return on assets (ROA) also demonstrates a consistent increase, moving from 6.64% in 2020 to 9.37% in 2024. This ratio reflects the company's ability to generate earnings from its total assets, including both operating and non-operating activities.
- Return on total capital was not provided for any of the years in the dataset, so it is difficult to assess how efficiently the company is utilizing its total capital to generate returns.
- Return on equity (ROE) was also not available for the years under consideration, which would have provided insights into how well the company is generating returns for its shareholders relative to their equity investments.
Overall, the improving trend in the Operating ROA and ROA ratios suggests that Papa John's International Inc has been effectively managing its assets to generate higher profitability. However, the absence of Return on total capital and ROE limits the comprehensive analysis of the company's profitability.