WD-40 Company (WDFC)
Profitability ratios
Return on sales
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 53.47% | 51.52% | 49.23% | 54.03% | 54.59% |
| Operating profit margin | 16.34% | 16.86% | 16.88% | 18.20% | 18.90% |
| Pretax margin | 15.52% | 16.00% | 16.25% | 17.72% | 18.49% |
| Net profit margin | 11.81% | 12.40% | 13.01% | 14.39% | 14.86% |
Overall, WD-40 Company has shown consistent profitability over the past five years. The gross profit margin has improved steadily from 49.23% in 2022 to 53.47% in 2024, indicating effective management of the cost of goods sold.
The operating profit margin has fluctuated slightly, but remained relatively stable, ranging from 16.34% to 18.90% over the same period. This suggests that the company has effectively controlled its operating expenses while generating revenue.
The pretax margin has trended downwards from 18.49% in 2020 to 15.52% in 2024, indicating a decrease in profitability before accounting for taxes. This could be due to various factors such as changes in tax regulations or increased expenses.
Similarly, the net profit margin has also shown a decline from 14.86% in 2020 to 11.81% in 2024. This suggests that the company's profitability after all expenses, including taxes, has decreased over the years.
Overall, while WD-40 Company has demonstrated strong gross and operating profit margins, there is a declining trend in pretax and net profit margins, which may warrant further analysis into the factors impacting the company's bottom line profitability.
Return on investment
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 21.46% | 20.49% | 20.11% | 20.65% | 21.29% |
| Return on assets (ROA) | 15.51% | 15.07% | 15.50% | 16.32% | 16.74% |
| Return on total capital | 30.44% | 28.37% | 29.36% | 28.19% | 28.51% |
| Return on equity (ROE) | 30.21% | 31.40% | 35.69% | 35.05% | 37.87% |
WD-40 Company has consistently demonstrated strong profitability performance over the past five years as evidenced by its profitability ratios.
1. Operating return on assets (Operating ROA): WD-40 Company's operating ROA has shown a slight increasing trend from 20.11% in 2022 to 21.46% in 2024. This indicates that the company has been efficient in generating operating income relative to its total assets.
2. Return on assets (ROA): Despite some fluctuations, WD-40 Company's ROA has remained above 15% consistently over the past five years. This metric indicates the company's ability to generate profits from its assets.
3. Return on total capital: WD-40 Company has shown an increasing trend in its return on total capital, reaching 30.44% in 2024. This ratio reflects the company's efficiency in generating returns for both equity and debt investors.
4. Return on equity (ROE): WD-40 Company's ROE has fluctuated slightly but has generally remained above 30% over the past five years. This indicates that the company has been successful in generating strong returns for its shareholders.
Overall, WD-40 Company's profitability ratios suggest that the company has been effectively utilizing its assets and capital to generate profits and deliver value to its shareholders.