Winnebago Industries Inc (WGO)
Profitability ratios
Return on sales
| Aug 26, 2023 | Aug 27, 2022 | Aug 28, 2021 | Aug 29, 2020 | Aug 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 16.89% | 18.90% | 18.10% | 13.50% | 15.47% |
| Operating profit margin | 8.67% | 11.87% | 11.33% | 4.91% | 7.82% |
| Pretax margin | 8.05% | 10.47% | 10.22% | 3.33% | 7.00% |
| Net profit margin | 6.22% | 7.94% | 7.84% | 2.65% | 5.63% |
Winnebago Industries, Inc.'s profitability ratios reflect its ability to generate profits from its operations. From 2019 to 2023, the gross profit margin has fluctuated, with a decrease in 2020 followed by a slight increase in 2021 and then a decrease again in 2022 and 2023. This indicates that the company's ability to control its cost of goods sold has been somewhat inconsistent.
The operating profit margin has followed a similar trend, with a decrease in 2020, a slight increase in 2021, and then a decrease again in 2022 and 2023. This suggests that the company has faced challenges in efficiently managing its operating expenses, which has impacted its profitability from its core business activities.
The pretax margin also exhibits variability, with a dip in 2020, followed by increases in 2021 and 2022 but then a decrease in 2023. Similarly, the net profit margin has fluctuated, with a decrease in 2020, a slight increase in 2021, and then a decrease in 2022 and 2023.
Overall, the downward trend in these profitability ratios from 2022 to 2023 may indicate increased competitive pressures, higher operating costs, or other challenges impacting Winnebago Industries' ability to maintain consistent profitability. It is essential for investors and stakeholders to closely monitor the company's efforts to address these trends and enhance its operational efficiency to sustain and improve its profitability in the future.
Return on investment
| Aug 26, 2023 | Aug 27, 2022 | Aug 28, 2021 | Aug 29, 2020 | Aug 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 12.36% | 24.14% | 19.75% | 6.64% | 14.06% |
| Return on assets (ROA) | 8.88% | 16.16% | 13.67% | 3.59% | 10.12% |
| Return on total capital | 15.29% | 30.74% | 25.73% | 8.56% | 17.87% |
| Return on equity (ROE) | 15.78% | 30.93% | 26.67% | 7.43% | 17.68% |
Winnebago Industries, Inc.'s profitability ratios provide valuable insight into the company's ability to generate earnings in relation to its assets and capital. Here is a detailed analysis of the profitability ratios based on the provided data:
1. Operating return on assets (Operating ROA): This ratio measures the company's operating profit generated per dollar of assets. Winnebago Industries, Inc. exhibited a declining trend in Operating ROA from 2019 to 2023. Although it experienced a substantial increase from 2020 to 2021, the ratio decreased significantly in the latest fiscal year, indicating a potential decline in operating efficiency or profitability relative to its assets.
2. Return on assets (ROA): This ratio indicates how efficiently the company is utilizing its assets to generate profit. Similar to the Operating ROA, Winnebago's ROA also displayed a downward trend over the five-year period. The company saw fluctuations in this ratio, with a notable increase from 2020 to 2021 but a subsequent decrease in 2023. This may suggest varying levels of asset efficiency and overall profitability over the years.
3. Return on total capital: This ratio measures the overall return generated on all of the capital invested in the company. Winnebago Industries, Inc. experienced a significant fluctuation in this ratio, with a substantial increase from 2020 to 2021 followed by a sharp decline in 2023. Although the ratio generally trended downward, it still exhibited a strong return on total capital in the latest year, indicating effective utilization of the company's invested capital despite the decline.
4. Return on equity (ROE): This ratio measures the return on shareholder equity, reflecting how effectively the company is generating profits from the shareholders' investments. Winnebago's ROE followed a similar pattern of a substantial increase from 2020 to 2021, followed by a decline in 2023. This indicates that the company may have effectively generated returns for its shareholders in the short term, but the sustainability of this performance might come into question based on the declining trend.
In summary, Winnebago Industries, Inc.'s profitability ratios reflect a mixed performance over the five-year period. While the company exhibited fluctuations and declining trends in some ratios, it also demonstrated the ability to generate strong returns relative to its assets and capital in certain years. Further analysis of the company's operating and financial activities would be essential to understand the underlying factors contributing to these profitability trends.