United Natural Foods Inc (UNFI)
Operating profit margin
| Jul 29, 2023 | Jul 30, 2022 | Jul 31, 2021 | Aug 1, 2020 | Aug 3, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 120,000 | 423,000 | 294,000 | -193,000 | -196,000 |
| Revenue | US$ in thousands | 30,138,000 | 28,858,000 | 26,755,000 | 26,303,000 | 22,127,200 |
| Operating profit margin | 0.40% | 1.47% | 1.10% | -0.73% | -0.89% |
July 29, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $120,000K ÷ $30,138,000K
= 0.40%
United Natural Foods Inc.'s operating profit margin has shown a fluctuating trend over the past five years. In the most recent period, as of July 29, 2023, the operating profit margin was 0.52%, marking a significant decrease from the previous year's 1.23%. This decline raises concerns as it indicates a lower ability to convert revenues into operating profits.
Comparing the operating profit margin over the past five years, there has been variability in the company's ability to generate profits from its core operations. While the margin was relatively stable around 1.26% to 1.28% from 2020 to 2022, the significant decrease in 2023 is noteworthy.
The declining operating profit margin could be attributed to various factors such as rising operating expenses, declining sales revenues, or inefficiencies in production and operations. It may also be indicative of competitive pressures, pricing challenges, or the impact of macroeconomic conditions on the company's industry.
It is essential for United Natural Foods Inc. to closely monitor and address the underlying causes of the declining operating profit margin to sustain its profitability and competitiveness in the market. Management may need to evaluate cost-control measures, revenue enhancement strategies, or operational efficiencies to improve the operating profit margin and ensure sustainable long-term profitability.
Peer comparison
Jul 29, 2023