United Natural Foods Inc (UNFI)
Net profit margin
| Jul 29, 2023 | Jul 30, 2022 | Jul 31, 2021 | Aug 1, 2020 | Aug 3, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 24,000 | 248,000 | 149,000 | -274,000 | -285,000 |
| Revenue | US$ in thousands | 30,138,000 | 28,858,000 | 26,755,000 | 26,303,000 | 22,127,200 |
| Net profit margin | 0.08% | 0.86% | 0.56% | -1.04% | -1.29% |
July 29, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $24,000K ÷ $30,138,000K
= 0.08%
The net profit margin is a key profitability ratio that indicates the percentage of revenue that translates into profit after all expenses, including taxes and interest, have been deducted. Analyzing the net profit margin of United Natural Foods Inc. (UNFI) over the past five years provides valuable insights into the company's ability to generate profit from its operations.
In 2023, UNFI's net profit margin stands at 0.08%, marking a significant decrease from the previous year. This decline suggests that the company's profitability has been impacted, potentially due to increased operating expenses, lower sales, or other factors affecting its bottom line. It is important to closely examine the underlying reasons for this decline to assess the sustainability of UNFI's profit generation.
In 2022, the net profit margin was 0.86%, reflecting a relatively healthy profitability level compared to the following year. This suggests that in 2022, UNFI was able to efficiently convert a higher proportion of its revenue into net income, signaling strong operational performance and effective cost management.
The net profit margin for 2021 was 0.55%, showing a moderate decrease from the previous year. While the profitability level remained positive, the decline may indicate challenges in maintaining or enhancing margins, which could stem from various internal or external factors impacting UNFI's financial performance.
In 2020, UNFI experienced a negative net profit margin of -1.03%, implying that the company incurred a net loss for the year. This is a concerning sign, suggesting that UNFI's expenses exceeded its revenue, leading to an overall loss. Analysis of the reasons behind this negative margin is essential to understand the operational and financial challenges faced by the company during this period.
Similarly, in 2019, UNFI also reported a negative net profit margin of -1.33%, indicating continued challenges in profitability and potential financial distress.
In summary, the trend in UNFI's net profit margin over the past five years indicates fluctuations in profitability, with both positive and negative margins. These fluctuations warrant a deeper analysis of the company's financial and operational performance to identify the factors driving these changes and to assess the sustainability of UNFI's profitability in the future.
Peer comparison
Jul 29, 2023