Wingstop Inc (WING)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 62.99% | 62.90% | 56.60% | 51.82% | 49.52% |
| Operating profit margin | 24.47% | 25.71% | 26.11% | 23.07% | 21.49% |
| Pretax margin | 20.50% | 19.39% | 20.85% | 10.83% | 12.90% |
| Net profit margin | 15.25% | 14.81% | 15.10% | 9.37% | 10.25% |
Wingstop Inc's profitability ratios have been showing a positive trend over the past five years. The gross profit margin has steadily increased from 49.52% in 2019 to 62.99% in 2023, indicating improved efficiency in production and cost management.
Similarly, the operating profit margin has been consistently strong, with a slight dip in 2023 compared to 2022. This ratio reflects the company's ability to generate profits from core operations, and Wingstop has maintained levels above 20% over the years.
The pretax margin also demonstrates a positive trajectory, reaching 20.50% in 2023 compared to 12.90% in 2019. This indicates effective management of expenses and increased profitability before accounting for taxes.
The net profit margin has shown significant improvement, rising from 10.25% in 2019 to 15.25% in 2023. This indicates that the company is effectively converting revenues into profits after considering all expenses, including taxes and interest.
Overall, Wingstop Inc's profitability ratios reflect a consistent and improving performance, showcasing strong operational efficiency and effective cost management strategies.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 29.80% | 21.67% | 29.60% | 27.13% | 25.83% |
| Return on assets (ROA) | 18.57% | 12.48% | 17.12% | 11.02% | 12.33% |
| Return on total capital | 44.16% | 29.09% | 46.14% | 45.68% | 43.67% |
| Return on equity (ROE) | — | — | — | — | — |
Wingstop Inc has exhibited consistent profitability over the past five years based on its profitability ratios. The Operating return on assets (Operating ROA) has shown an upward trend, improving from 25.83% in 2019 to 29.80% in 2023. This indicates that the company is effectively generating profits from its assets through its core operations.
Similarly, the Return on assets (ROA) has also shown a positive trend, increasing from 12.33% in 2019 to 18.57% in 2023. This demonstrates that Wingstop Inc is efficiently utilizing its assets to generate profits for its shareholders.
Moreover, the Return on total capital has been consistently high, with a slight fluctuation between 29.09% in 2022 and 46.14% in 2021. This indicates the company's ability to generate strong returns on the total capital invested in its operations.
Unfortunately, the data provided does not include the Return on equity (ROE) for Wingstop Inc, which is also a crucial profitability metric. Nonetheless, based on the available data, it can be inferred that the company has been delivering robust profitability performance over the past few years, reflecting effective utilization of assets and capital to generate returns for its stakeholders.