WD-40 Company (WDFC)
Profitability ratios
Return on sales
| Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 53.70% | 53.15% | 52.67% | 52.32% | 51.56% | 50.27% | 49.44% | 49.27% | 49.27% | 50.28% | 51.59% | 52.70% | 54.03% | 55.22% | 55.59% | 55.17% | 54.59% | 54.13% | 54.25% | 54.69% |
| Operating profit margin | 16.41% | 16.76% | 16.94% | 17.45% | 16.87% | 16.39% | 15.63% | 16.11% | 16.89% | 16.01% | 17.22% | 17.00% | 18.20% | 20.82% | 20.92% | 20.92% | 18.90% | 18.77% | 18.88% | 19.18% |
| Pretax margin | 15.59% | 15.95% | 16.12% | 16.59% | 16.01% | 15.47% | 14.80% | 15.47% | 16.27% | 15.40% | 16.67% | 16.42% | 17.72% | 20.62% | 20.63% | 20.54% | 18.49% | 18.14% | 18.31% | 18.77% |
| Net profit margin | 11.86% | 12.18% | 12.34% | 12.73% | 12.41% | 12.23% | 11.77% | 12.34% | 13.02% | 12.16% | 13.11% | 13.11% | 14.39% | 16.82% | 16.80% | 16.60% | 14.86% | 12.30% | 12.70% | 13.03% |
WD-40 Company has shown a relatively stable and healthy trend in profitability ratios over the past two years. The gross profit margin has been consistently above 50%, indicating efficient cost management and pricing strategies. The operating profit margin has also been steady around 16-18%, showing effective control over operating expenses and a strong operational performance.
The pretax margin has ranged between 15-17%, indicating the company's ability to generate profits before considering tax implications. The net profit margin, a key indicator of overall profitability, has shown resilience, consistently above 11% and reaching as high as 16-17%. This demonstrates WD-40 Company's ability to generate net income efficiently after all expenses are accounted for.
Overall, the company's profitability ratios suggest a well-managed and profitable operation, with a focus on maintaining healthy margins and sustaining consistent profitability over time.
Return on investment
| Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 21.46% | 21.54% | 21.27% | 22.12% | 20.49% | 19.64% | 17.62% | 18.56% | 20.11% | 18.70% | 20.94% | 20.05% | 20.65% | 23.58% | 23.00% | 23.53% | 21.29% | 19.63% | 23.75% | 25.41% |
| Return on assets (ROA) | 15.51% | 15.65% | 15.49% | 16.13% | 15.07% | 14.66% | 13.28% | 14.22% | 15.50% | 14.20% | 15.95% | 15.46% | 16.32% | 19.04% | 18.47% | 18.67% | 16.74% | 12.86% | 15.97% | 17.27% |
| Return on total capital | 30.41% | 31.12% | 31.30% | 31.82% | 28.37% | 27.43% | 25.96% | 27.39% | 29.36% | 26.09% | 28.32% | 27.02% | 28.19% | 32.06% | 31.10% | 31.74% | 28.51% | 31.57% | 37.76% | 39.21% |
| Return on equity (ROE) | 30.21% | 31.24% | 31.67% | 32.18% | 31.40% | 31.19% | 30.31% | 32.80% | 35.69% | 31.22% | 33.93% | 32.84% | 35.05% | 40.21% | 39.98% | 41.34% | 37.87% | 34.23% | 35.99% | 37.55% |
Based on the profitability ratios of WD-40 Company for the periods specified, we observe the following trends:
1. Operating return on assets (Operating ROA) has remained relatively stable, fluctuating between 17.62% and 23.75% over the past few periods. This ratio indicates the company's ability to generate operating profits from its assets, with the highest value recorded at 23.75% in May 2020.
2. Return on assets (ROA) has shown a similar trend to Operating ROA, ranging from 12.86% to 19.04%. This ratio reflects the overall profitability of the company's assets, with the highest value of 19.04% achieved in February 2021.
3. Return on total capital has also exhibited consistency, varying between 25.96% and 39.21% during the periods under review. This ratio highlights the efficiency of utilizing both equity and debt capital to generate returns, with the peak of 39.21% noted in May 2019.
4. Return on equity (ROE) has been relatively stable, fluctuating between 30.21% and 41.34%. ROE signifies the company's profitability in relation to shareholders' equity, with the highest value of 41.34% observed in February 2021.
Overall, WD-40 Company has demonstrated strong profitability metrics, with consistent performance in generating returns from its assets, capital, and equity over the analyzed periods. The company's ability to maintain profitability ratios at such levels indicates efficient operations and effective utilization of resources to create value for shareholders.