United Natural Foods Inc (UNFI)
Profitability ratios
Return on sales
| Aug 3, 2024 | Jul 29, 2023 | Jul 30, 2022 | Jul 31, 2021 | Aug 1, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 13.56% | 13.71% | 14.49% | 14.72% | 14.79% |
| Operating profit margin | 0.03% | 0.40% | 1.47% | 1.10% | -0.73% |
| Pretax margin | -0.45% | 0.00% | 1.05% | 0.68% | -1.39% |
| Net profit margin | -0.36% | 0.08% | 0.86% | 0.56% | -1.04% |
United Natural Foods Inc's profitability ratios have shown mixed performance over the past five years. The gross profit margin has exhibited a slight decline, starting at 14.79% in 2020 and dropping to 13.56% in 2024. This indicates a decrease in the percentage of revenue retained after accounting for the cost of goods sold.
The operating profit margin has fluctuated significantly, with a positive trend from -0.73% in 2020 to 1.47% in 2022, followed by a sharp decline to 0.03% in 2024. This suggests inconsistencies in the company's ability to control operating expenses relative to sales.
The pretax margin has also been volatile, ranging from -1.39% in 2020 to 1.05% in 2022, but then decreasing to -0.45% in 2024. This indicates fluctuations in the company's profitability before accounting for taxes.
Similarly, the net profit margin has shown variability, moving from -1.04% in 2020 to 0.86% in 2022 before dropping to -0.36% in 2024. This reveals the company's fluctuating ability to generate profits after accounting for all expenses.
Overall, United Natural Foods Inc's profitability ratios reflect a lack of consistent profitability and indicate the need for the company to focus on improving operational efficiency and cost management to enhance its overall profitability in the future.
Return on investment
| Aug 3, 2024 | Jul 29, 2023 | Jul 30, 2022 | Jul 31, 2021 | Aug 1, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 0.11% | 1.62% | 5.55% | 3.91% | -2.54% |
| Return on assets (ROA) | -1.49% | 0.32% | 3.25% | 1.98% | -3.61% |
| Return on total capital | 0.21% | 3.92% | 11.77% | 10.49% | -4.65% |
| Return on equity (ROE) | -6.83% | 1.38% | 13.85% | 9.83% | -23.93% |
United Natural Foods Inc's profitability ratios have fluctuated over the past five years.
1. Operating return on assets (Operating ROA) has shown a declining trend from 5.55% in fiscal year 2022 to 0.11% in fiscal year 2024. This indicates that the company's ability to generate profit from its assets has decreased significantly.
2. Return on assets (ROA) also experienced a negative trend, dropping from 3.25% in fiscal year 2022 to -1.49% in fiscal year 2024. This suggests that the company has been less effective at generating profits relative to its total assets in recent years.
3. Return on total capital has shown fluctuations, with the highest value of 11.77% in fiscal year 2022 and the lowest value of 0.21% in fiscal year 2024. This ratio reflects the company's ability to generate profit from both debt and equity sources of capital.
4. Return on equity (ROE) has been inconsistent, ranging from a high of 13.85% in fiscal year 2022 to a low of -23.93% in fiscal year 2020. The negative ROE in fiscal year 2020 indicates that the company incurred a loss, while the positive values in other years demonstrate the company's ability to generate profit for its shareholders.
Overall, the profitability ratios of United Natural Foods Inc indicate a mixed performance in recent years, with fluctuations in profitability and varying levels of efficiency in generating returns for both assets and equity. Further analysis and understanding of the company's financial performance and strategic initiatives would be necessary to provide more insights into its overall profitability.