Sally Beauty Holdings Inc (SBH)
Profitability ratios
Return on sales
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 51.73% | 51.96% | 51.24% | 51.48% | 51.54% | 51.56% | 52.22% | 51.85% | 51.75% | 51.68% | 51.53% | 50.74% | 50.43% | 49.81% | 49.41% | 50.12% | 50.17% | 50.24% | 50.21% | 50.21% |
| Operating profit margin | 8.48% | 8.90% | 7.77% | 7.99% | 8.41% | 9.07% | 10.93% | 11.46% | 11.14% | 11.07% | 11.33% | 8.73% | 7.92% | 7.51% | 7.39% | 10.04% | 11.67% | 12.06% | 11.71% | 11.18% |
| Pretax margin | 6.48% | 6.90% | 5.86% | 5.61% | 5.95% | 6.56% | 8.36% | 9.27% | 8.85% | 8.60% | 8.63% | 5.67% | 4.88% | 4.64% | 4.71% | 7.59% | 9.21% | 9.52% | 9.13% | 8.64% |
| Net profit margin | 4.76% | 5.05% | 4.42% | 4.29% | 4.46% | 4.93% | 6.15% | 6.81% | 6.56% | 6.35% | 6.42% | 4.12% | 3.45% | 3.29% | 3.25% | 5.55% | 6.82% | 7.14% | 6.78% | 6.40% |
Sally Beauty Holdings Inc's gross profit margin has been relatively stable, hovering around 50% over the past eight quarters. This indicates a consistent level of efficiency in managing production costs and markups on products.
The company's operating profit margin has shown a declining trend from Q2 2022 to Q1 2024, dropping from 11.34% to 8.49%. This suggests that the company's operating expenses have been rising compared to its total revenue, impacting its profitability.
Similarly, the pretax margin has also exhibited a downward trajectory, decreasing from 9.07% in Q2 2022 to 6.35% in Q1 2024. This indicates that the company's profitability before accounting for taxes has been declining over the periods analyzed.
Finally, Sally Beauty Holdings Inc's net profit margin has followed a similar declining trend, falling from 6.66% in Q2 2022 to 4.66% in Q1 2024. This implies that after accounting for all expenses, including taxes, the company is generating less profit for each dollar of revenue.
Overall, while the company has maintained a healthy gross profit margin, its operating, pretax, and net profit margins have declined sequentially over the quarters. This suggests that Sally Beauty Holdings Inc may be facing challenges in managing its operating expenses and maximizing its profitability.
Return on investment
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 11.26% | 11.93% | 10.74% | 11.08% | 11.67% | 13.10% | 15.25% | 15.96% | 14.95% | 14.70% | 15.37% | 10.34% | 8.96% | 8.94% | 7.98% | 12.80% | 16.56% | 21.85% | 21.50% | 20.43% |
| Return on assets (ROA) | 6.32% | 6.77% | 6.11% | 5.95% | 6.19% | 7.12% | 8.58% | 9.48% | 8.81% | 8.42% | 8.71% | 4.89% | 3.91% | 3.91% | 3.50% | 7.08% | 9.69% | 12.94% | 12.44% | 11.70% |
| Return on total capital | 18.99% | 20.71% | 18.49% | 19.86% | 21.78% | 25.36% | 30.62% | 26.10% | 25.05% | 24.44% | 25.63% | 16.81% | 13.67% | 13.97% | 14.50% | 29.22% | 27.25% | 29.61% | 29.38% | 27.29% |
| Return on equity (ROE) | 31.89% | 36.29% | 33.49% | 37.36% | 44.21% | 62.51% | 77.86% | 95.64% | 89.50% | 85.44% | 108.83% | 105.44% | 118.57% | 733.31% | — | — | 11,783.13% | — | — | — |
Sally Beauty Holdings Inc's profitability ratios show a declining trend over the quarters analyzed. The Operating Return on Assets (Operating ROA) decreased from 16.14% in Q2 2022 to 11.51% in Q1 2024, indicating a decrease in the company's ability to generate operating profits from its total assets. Similarly, the Return on Assets (ROA) declined from 9.48% in Q2 2022 to 6.32% in Q1 2024, reflecting a decrease in overall profitability relative to its total assets.
The Return on Total Capital also decreased from 26.77% in Q2 2022 to 19.51% in Q1 2024, indicating a decline in the company's ability to generate returns from total invested capital. Moreover, the Return on Equity (ROE) dropped significantly from 95.64% in Q2 2022 to 31.89% in Q1 2024, displaying a substantial decrease in profitability relative to the shareholders' equity.
Overall, the declining trend in profitability ratios for Sally Beauty Holdings Inc suggests potential challenges in maintaining sustainable profitability and generating returns for both investors and creditors. This trend warrants further investigation into the company's operational efficiency, cost management, and overall financial performance.