Winnebago Industries Inc (WGO)
Profitability ratios
Return on sales
| Aug 31, 2024 | Aug 26, 2023 | Aug 27, 2022 | Aug 28, 2021 | Aug 29, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 14.58% | 16.89% | 18.90% | 18.10% | 13.50% |
| Operating profit margin | 3.37% | 8.67% | 11.87% | 11.33% | 4.91% |
| Pretax margin | 1.29% | 8.05% | 10.47% | 10.22% | 3.33% |
| Net profit margin | 0.44% | 6.22% | 7.94% | 7.84% | 2.65% |
Winnebago Industries Inc's profitability ratios have shown varying trends over the past five years. The gross profit margin has declined from 18.90% in 2022 to 14.58% in 2024, indicating a decrease in the percentage of revenue retained after accounting for the cost of goods sold. This may suggest challenges in managing production costs efficiently.
The operating profit margin has also decreased significantly, from 11.87% in 2022 to 3.37% in 2024. This decline could signal a decrease in the company's ability to generate profits from its core operations, which may be a concern for investors and stakeholders.
Similarly, the pretax margin has decreased from 10.47% in 2022 to 1.29% in 2024. This indicates a reduction in the percentage of pre-tax income relative to total revenue, which could be attributed to rising expenses or lower revenue generation.
The net profit margin has also shown a declining trend, decreasing from 7.94% in 2022 to 0.44% in 2024. This suggests that the company's ability to generate profits after accounting for all expenses, including taxes, has weakened over the years.
Overall, the declining profitability margins of Winnebago Industries Inc over the past years raise concerns about the company's operational efficiency, cost management, and overall financial performance. It would be important for the company to closely analyze its cost structures, revenue generation strategies, and operational efficiency to improve its profitability ratios and sustain long-term growth.
Return on investment
| Aug 31, 2024 | Aug 26, 2023 | Aug 27, 2022 | Aug 28, 2021 | Aug 29, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.20% | 12.36% | 24.14% | 19.75% | 6.64% |
| Return on assets (ROA) | 0.55% | 8.88% | 16.16% | 13.67% | 3.59% |
| Return on total capital | 5.24% | 15.29% | 30.74% | 25.73% | 8.56% |
| Return on equity (ROE) | 1.02% | 15.78% | 30.93% | 26.67% | 7.43% |
Winnebago Industries Inc's profitability ratios have shown fluctuations over the past five years.
1. Operating return on assets (Operating ROA): This ratio measures the company's ability to generate operating profits from its assets. Winnebago's Operating ROA has seen a decline from 24.14% in 2022 to 4.20% in 2024, indicating a decrease in the efficiency of using its assets to generate operating income.
2. Return on assets (ROA): ROA represents the company's overall profitability in relation to its total assets. Winnebago's ROA has also experienced fluctuations, ranging from 0.55% in 2024 to 16.16% in 2022. The lower ROA in 2024 suggests a less effective overall asset utilization in generating profits.
3. Return on total capital: This ratio indicates the return earned on the total capital invested in the business. Winnebago's Return on total capital has shown variability, with the highest return of 30.74% in 2022 and the lowest of 5.24% in 2024.
4. Return on equity (ROE): ROE measures the return earned on shareholders' equity. Winnebago's ROE has also demonstrated fluctuations over the years, with a decrease from 30.93% in 2022 to 1.02% in 2024, indicating a lower return on equity for shareholders.
In conclusion, Winnebago Industries Inc's profitability ratios have displayed mixed performance trends over the past five years, with variations in efficiency, overall profitability, capital utilization, and returns to shareholders. Further analysis and investigation into the factors driving these fluctuations may be necessary to understand the company's financial health and performance better.