SpartanNash Co (SPTN)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 15.27% | 15.53% | 15.72% | 15.24% | 14.57% |
| Operating profit margin | 1.10% | 0.71% | 1.26% | 1.10% | 0.67% |
| Pretax margin | 0.72% | 0.49% | 1.10% | 0.91% | 0.04% |
| Net profit margin | 0.54% | 0.36% | 0.83% | 0.81% | 0.07% |
SpartanNash Co's profitability ratios exhibit some fluctuations over the past five years. The gross profit margin has remained relatively stable, ranging from 14.57% in 2019 to 15.72% in 2021, indicating the company's ability to generate profit from its core operations.
The operating profit margin has shown improvement over the years, with a notable increase from 0.67% in 2019 to 1.10% in 2023. This indicates that SpartanNash Co has been more efficient in managing its operating expenses and is generating higher profits from its day-to-day business activities.
Similarly, the pretax margin has also demonstrated positive trends, reaching 1.10% in 2021 compared to 0.04% in 2019. This suggests that the company has been more effective in managing its overall expenses and optimizing its pre-tax earnings.
The net profit margin, which reflects the company's bottom line profitability after all expenses have been deducted, has also shown improvement, with a steady increase from 0.07% in 2019 to 0.54% in 2023. This indicates that SpartanNash Co has been able to enhance its profitability and generate more earnings for its shareholders.
Overall, SpartanNash Co's profitability ratios reflect a positive trend, with improvements in operating efficiency and bottom-line profitability over the past five years.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.53% | 2.97% | 5.08% | 4.50% | 2.50% |
| Return on assets (ROA) | 2.22% | 1.50% | 3.34% | 3.33% | 0.25% |
| Return on total capital | 14.14% | 9.04% | 14.27% | 13.99% | 5.45% |
| Return on equity (ROE) | 6.71% | 4.51% | 9.42% | 10.33% | 0.84% |
SpartanNash Co's profitability ratios demonstrate a mixed performance over the past five years.
Starting with the Operating Return on Assets (Operating ROA), there has been an improvement in 2023 compared to 2022, indicating that the company is generating more operating income per dollar of assets. However, the Operating ROA remains below the levels achieved in 2021. This ratio shows the efficiency of the company in generating profits from its operational assets.
The Return on Assets (ROA) shows a similar trend, with an increase from 2022 to 2023, but still lower than 2021. This ratio reflects the overall profitability of the company in relation to its total assets over a period.
The Return on Total Capital has shown a noticeable improvement in 2023 compared to the previous years, reaching the highest level in the past five years. This indicates that SpartanNash Co has been able to generate better returns on the total capital employed in the business, including both equity and debt.
Lastly, the Return on Equity (ROE) has also shown an upward trend, with an increase in 2023 compared to 2022. Although ROE fluctuates over the years, it has generally improved, indicating that the company is effectively utilizing shareholders' equity to generate profits.
Overall, while there have been fluctuations in profitability ratios, SpartanNash Co has shown improvements in certain areas, such as return on total capital and return on equity, which indicate the company's ability to generate returns for both shareholders and creditors. Further analysis of underlying factors contributing to these trends would be beneficial to gain a deeper understanding of the company's financial performance.