Williams-Sonoma Inc (WSM)
Profitability ratios
Return on sales
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 42.62% | 42.40% | 44.05% | 38.83% | 36.22% |
| Operating profit margin | 16.05% | 17.27% | 17.62% | 13.41% | 7.89% |
| Pretax margin | 16.43% | 17.30% | 17.60% | 13.18% | 7.74% |
| Net profit margin | 12.25% | 13.00% | 13.66% | 10.03% | 6.03% |
Williams-Sonoma Inc has demonstrated consistent improvement in profitability ratios over the past five years. The gross profit margin has remained relatively stable, ranging between 36.22% and 44.05%, indicating the company's ability to effectively control production and distribution costs.
The operating profit margin has shown a positive upward trend, increasing from 7.89% in 2020 to 16.05% in 2024. This suggests improved operational efficiency and management of operating expenses, leading to higher profitability from core business activities.
Similarly, the pretax margin has also exhibited a steady growth pattern, indicating the company's ability to generate higher profits before considering taxes. The pretax margin increased from 7.74% in 2020 to 16.43% in 2024, showcasing strong financial performance.
The net profit margin has followed a similar trend of growth, reflecting the company's ability to translate its revenues into profits after accounting for all expenses. The net profit margin improved from 6.03% in 2020 to 12.25% in 2024, indicating enhanced profitability and bottom-line performance.
Overall, Williams-Sonoma Inc's profitability ratios demonstrate a positive trajectory, highlighting the company's effective cost management, operational efficiency, and financial strength over the years.
Return on investment
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 23.59% | 32.13% | 31.41% | 19.54% | 11.49% |
| Return on assets (ROA) | 18.01% | 24.19% | 24.35% | 14.60% | 8.78% |
| Return on total capital | 58.47% | 88.09% | 87.32% | 55.15% | 37.70% |
| Return on equity (ROE) | 44.63% | 66.31% | 67.68% | 41.23% | 28.81% |
The profitability ratios of Williams-Sonoma Inc have demonstrated a generally positive trend over the past five years.
1. Operating return on assets (Operating ROA):
- The Operating ROA has fluctuated over the years, ranging from 11.49% in February 2020 to 32.13% in January 2023. The most recent data shows an Operating ROA of 23.59% as of January 28, 2024, reflecting the company's ability to generate operating income relative to its total assets.
2. Return on assets (ROA):
- The ROA has also shown an upward trajectory, increasing from 8.78% in February 2020 to 24.19% in January 2023. As of January 28, 2024, the ROA stands at 18.01%, indicating that Williams-Sonoma Inc is efficiently generating profit from its assets.
3. Return on total capital:
- The return on total capital has shown significant growth, with the ratio escalating from 37.70% in February 2020 to 88.09% in January 2023. The latest data as of January 28, 2024, indicates a return on total capital of 58.47%, highlighting the company's ability to generate returns for both debt and equity holders.
4. Return on equity (ROE):
- The ROE has also displayed a positive trend, climbing from 28.81% in February 2020 to 66.31% in January 2023. As of January 28, 2024, the ROE stands at 44.63%, implying that Williams-Sonoma Inc is effectively utilizing equity to generate profits for shareholders.
Overall, the profitability ratios of Williams-Sonoma Inc demonstrate the company's efficiency in generating profits in relation to its assets, capital, and equity over the past five years, reflecting sound financial performance and management effectiveness.