Sally Beauty Holdings Inc (SBH)
Net profit margin
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 184,600 | 183,553 | 239,858 | 184,600 | 271,623 |
| Revenue | US$ in thousands | 3,652,760 | 3,705,580 | 3,777,230 | 3,415,500 | 3,779,150 |
| Net profit margin | 5.05% | 4.95% | 6.35% | 5.40% | 7.19% |
September 30, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $184,600K ÷ $3,652,760K
= 5.05%
Sally Beauty Holdings Inc's net profit margin, a key profitability ratio, provides insight into the company's ability to translate revenue into bottom-line profit.
Between September 30, 2019, and September 30, 2023, the net profit margin has fluctuated, showing a mix of positive and negative trends.
The net profit margin stood at 7.01% in 2019, signifying that for every dollar of revenue, the company generated a net profit of $0.0701. However, the profitability declined notably in 2020 to 3.22%, indicating a decrease in the company's ability to convert revenue into profit. This decline could be attributed to various factors such as increased costs, lower sales volume, or pricing pressures.
In 2021, there was a notable recovery in the net profit margin, increasing to 6.19%, although it remained below the 2019 level. This recovery could be indicative of improved cost management or a rebound in sales. However, it's essential to investigate the specific drivers behind this increase to gauge the sustainability of the improvement.
The most recent data from September 30, 2023, shows the net profit margin increasing further to 4.95%, reflecting a positive uptick. This improvement suggests that the company might be taking steps to enhance its profitability, although it remains below the levels of 2019 and 2021.
Overall, the fluctuation in the net profit margin over the years reflects the dynamic nature of Sally Beauty Holdings Inc's profitability. It's crucial for stakeholders to closely monitor this metric in conjunction with other financial indicators to gain a comprehensive understanding of the company's financial performance and potential future prospects.
Peer comparison
Sep 30, 2023