Wingstop Inc (WING)

Net profit margin

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Net income (ttm)	US$ in thousands	108,717	100,778	94,557	83,253	70,175	68,957	62,814	59,940	52,947	42,247	40,169	38,174	42,658	29,352	28,143	28,370	23,306	32,763	28,587	21,966
Revenue (ttm)	US$ in thousands	625,807	591,043	545,649	497,123	460,055	437,865	413,433	390,037	357,521	324,682	297,794	288,017	282,502	273,756	271,960	264,065	248,811	238,715	224,602	207,059
Net profit margin		17.37%	17.05%	17.33%	16.75%	15.25%	15.75%	15.19%	15.37%	14.81%	13.01%	13.49%	13.25%	15.10%	10.72%	10.35%	10.74%	9.37%	13.72%	12.73%	10.61%

December 31, 2024 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $108,717K ÷ $625,807K
= 17.37%

Net profit margin is an important financial metric that indicates the percentage of revenue that translates into profit after all expenses have been deducted. It is calculated by dividing net income by total revenue and multiplying by 100 to express the result as a percentage.

Based on the data provided for Wingstop Inc's net profit margin over the period from March 31, 2020, to December 31, 2024, we observe the following trends:

- The net profit margin started at 10.61% in March 2020 and showed fluctuations over the subsequent quarters, reaching a low of 9.37% in December 2020.
- Thereafter, the net profit margin gradually improved, peaking at 17.37% in December 2024.
- Overall, the net profit margin trended upwards with some variability, indicating the company's ability to manage costs and generate profitable operations.
- The highest net profit margin of 17.37% in December 2024 suggests strong profitability and efficient cost management strategies implemented by Wingstop Inc during that period.

In conclusion, Wingstop Inc's net profit margin demonstrates a positive trajectory over the analyzed period, reflecting the company's ability to convert a higher portion of its revenue into profits. This trend underscores the company's profitability and efficiency in managing its operational costs.