United Natural Foods Inc (UNFI)
Profitability ratios
Return on sales
| Jul 29, 2023 | Jul 30, 2022 | Jul 31, 2021 | Aug 1, 2020 | Aug 3, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 13.71% | 14.49% | 14.72% | 14.79% | 14.55% |
| Operating profit margin | 0.40% | 1.47% | 1.10% | -0.73% | -0.89% |
| Pretax margin | 0.00% | 1.05% | 0.68% | -1.39% | -1.55% |
| Net profit margin | 0.08% | 0.86% | 0.56% | -1.04% | -1.29% |
The profitability ratios of United Natural Foods Inc. show some fluctuations over the past five years. The gross profit margin has experienced a slight decrease from 14.62% in 2021 to 13.65% in 2023, indicating a decline in the percentage of revenue remaining after the cost of goods sold. This may suggest challenges in maintaining efficient production and distribution processes.
The operating profit margin has shown a similar downward trend, dropping from 1.28% in 2021 to 0.52% in 2023. This suggests a decrease in the company's ability to generate profits from its core business operations after accounting for operating expenses, which is a concerning trend for investors.
The pretax margin has been volatile, with a significant decrease in 2020 and 2019, followed by a slight recovery in 2021, but a further dip in 2023. This indicates fluctuations in the company's profitability before accounting for taxes, potentially signaling challenges in managing costs and expenses.
Furthermore, the net profit margin has also displayed inconsistency, with negative margins in 2020 and 2019 and a slight recovery in 2021, albeit followed by a decrease in 2023. This indicates that after accounting for all expenses, including taxes, the company has struggled to maintain positive profitability.
In summary, United Natural Foods Inc. has shown fluctuations in its profitability ratios, indicating potential challenges in controlling costs, maintaining efficiency in operations, and generating returns for its shareholders. Investors may need to closely monitor the company's financial performance and management strategies to assess its future profitability potential.
Return on investment
| Jul 29, 2023 | Jul 30, 2022 | Jul 31, 2021 | Aug 1, 2020 | Aug 3, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 1.62% | 5.55% | 3.91% | -2.54% | -2.73% |
| Return on assets (ROA) | 0.32% | 3.25% | 1.98% | -3.61% | -3.97% |
| Return on total capital | 3.92% | 11.77% | 10.49% | -4.65% | -3.61% |
| Return on equity (ROE) | 1.38% | 13.85% | 9.83% | -23.93% | -18.91% |
United Natural Foods Inc.'s profitability ratios indicate fluctuating performance over the past five years. The operating return on assets (Operating ROA) decreased from 4.68% in 2022 to 2.14% in 2023, suggesting a decline in the company's ability to generate operating profit from its assets. The Return on Assets (ROA) also witnessed a downturn, dropping from 3.25% in 2022 to 0.32% in 2023, indicating a significant decrease in net income generated from total assets.
However, the Return on Total Capital and Return on Equity (ROE) both exhibited a similar trend, showing an increase from 2022 to 2023. Return on Total Capital climbed from 9.04% to 4.24%, while ROE grew from 13.85% to 1.38%. These ratios demonstrate the company's ability to generate higher returns for its shareholders and capital providers in 2023 compared to the previous year.
Overall, the company's profitability ratios present a mixed picture, with a decrease in operating and asset-based returns but an improvement in returns related to total capital and equity. This signals the need for a deeper investigation into the company's operational efficiency and capital utilization to understand the underlying factors driving these fluctuations in profitability.