Simply Good Foods Co (SMPL)
Profitability ratios
Return on sales
| Aug 31, 2024 | Aug 26, 2023 | Aug 27, 2022 | Aug 28, 2021 | Aug 29, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 38.43% | 36.49% | 38.13% | 40.75% | 39.71% |
| Operating profit margin | 15.51% | 16.49% | 17.35% | 17.27% | 9.58% |
| Pretax margin | 13.97% | 14.14% | 12.88% | 8.04% | 9.67% |
| Net profit margin | 10.46% | 10.75% | 9.29% | 4.07% | 8.04% |
Simply Good Foods Co has exhibited relatively stable gross profit margins over the past five years, ranging from 36.49% to 40.75%. The operating profit margin has also been fairly consistent, with a slight decrease from 17.35% in 2022 to 15.51% in 2024. The pretax margin has fluctuated, with a notable increase in 2021 and 2024 compared to the other years. Net profit margin has shown variability, with a substantial increase in 2021 to 10.46% and a peak in 2023 at 10.75%. Overall, the company has demonstrated a strong ability to generate profits, with improvements in pretax and net profit margins in recent years.
Return on investment
| Aug 31, 2024 | Aug 26, 2023 | Aug 27, 2022 | Aug 28, 2021 | Aug 29, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.48% | 9.77% | 9.68% | 8.46% | 3.89% |
| Return on assets (ROA) | 5.72% | 6.37% | 5.18% | 1.99% | 3.27% |
| Return on total capital | 9.72% | 11.11% | 9.36% | 6.85% | 6.44% |
| Return on equity (ROE) | 8.06% | 8.50% | 7.55% | 3.44% | 5.76% |
Simply Good Foods Co's profitability ratios have shown mixed performance over the past five years.
1. Operating return on assets (Operating ROA) has fluctuated, with a slight decrease from 9.77% in 2023 to 8.48% in 2024. This ratio indicates that the company generated 8.48 cents of operating income for every dollar of assets in 2024.
2. Return on assets (ROA) has also fluctuated, with a notable increase from 1.99% in 2021 to 5.72% in 2024. This ratio shows that Simply Good Foods Co's overall profitability improved in 2024 by generating 5.72 cents of profit for every dollar of assets.
3. Return on total capital has shown an upward trend over the years, reaching 9.72% in 2024. This ratio reflects the company's ability to generate a return of 9.72 cents for every dollar of total capital employed.
4. Return on equity (ROE) has also demonstrated an increasing trend, rising from 3.44% in 2021 to 8.06% in 2024. This indicates that Simply Good Foods Co's profitability in relation to shareholder equity has improved significantly in 2024.
Overall, Simply Good Foods Co's profitability ratios suggest improved performance in recent years, indicating effective management of assets, capital, and equity to generate higher returns.