Williams-Sonoma Inc (WSM)
Profitability ratios
Return on sales
| Jan 31, 2025 | Jan 31, 2024 | Jan 28, 2024 | Jan 31, 2023 | Jan 29, 2023 | |
|---|---|---|---|---|---|
| Gross profit margin | 46.45% | 42.62% | 42.62% | 42.40% | 42.40% |
| Operating profit margin | 18.55% | 16.05% | 16.05% | 17.27% | 17.27% |
| Pretax margin | 19.27% | 16.43% | 16.43% | 17.30% | 17.30% |
| Net profit margin | 14.59% | 12.25% | 12.25% | 13.00% | 13.00% |
Williams-Sonoma Inc's profitability ratios reflect a generally stable and increasing trend over the years.
The Gross Profit Margin has remained consistent around the 42-43% range until the latest reported period, where it increased significantly to 46.45%. This indicates that the company has been able to efficiently control its cost of goods sold.
The Operating Profit Margin shows a slight decrease from 17.27% to 16.05% between January 2023 and January 2024, but then improved to 18.55% by January 2025. This suggests that the company has been managing its operating expenses effectively, leading to higher profitability from its core operations.
The Pretax Margin also displays a similar pattern, declining from 17.30% to 16.43% before rising to 19.27%. This indicates that the company's performance in generating profits before accounting for taxes has improved over the years.
The Net Profit Margin, which represents the company's bottom-line profitability, has increased from 13.00% in January 2023 to 14.59% in January 2025. This demonstrates that Williams-Sonoma Inc has been able to efficiently manage its tax obligations and other expenses to enhance its overall profitability.
Overall, the improving trend in profitability ratios suggests that Williams-Sonoma Inc has been effectively managing its costs and operations to drive higher profitability over the analyzed period.
Return on investment
| Jan 31, 2025 | Jan 31, 2024 | Jan 28, 2024 | Jan 31, 2023 | Jan 29, 2023 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 26.98% | 23.59% | 23.59% | 32.13% | 32.13% |
| Return on assets (ROA) | 21.22% | 18.01% | 18.01% | 24.19% | 24.19% |
| Return on total capital | 66.76% | 59.15% | 58.47% | 61.90% | 88.09% |
| Return on equity (ROE) | 52.52% | 44.63% | 44.63% | 66.31% | 66.31% |
Based on the provided data, we can analyze the profitability ratios of Williams-Sonoma Inc as follows:
1. Operating Return on Assets (Operating ROA):
- The Operating ROA for Williams-Sonoma Inc was consistent at 32.13% for the fiscal years ending January 29, 2023, and January 31, 2023. However, there was a slight decline to 23.59% for the fiscal years ending January 28, 2024, and January 31, 2024, followed by an improvement to 26.98% for the fiscal year ending January 31, 2025. This ratio indicates the company's ability to generate operating profits from its assets.
2. Return on Assets (ROA):
- The ROA for Williams-Sonoma Inc stood at 24.19% for the fiscal years ending January 29, 2023, and January 31, 2023, demonstrating a consistent performance. There was a decrease to 18.01% for the fiscal years ending January 28, 2024, and January 31, 2024, followed by an increase to 21.22% for the fiscal year ending January 31, 2025. ROA reflects the company's efficiency in generating profits from its total assets.
3. Return on Total Capital:
- Williams-Sonoma Inc's Return on Total Capital varied over the years, with figures of 88.09% and 61.90% for the fiscal years ending January 29, 2023, and January 31, 2023, respectively. The ratio decreased to 58.47% for the fiscal year ending January 28, 2024, and then slightly improved to 59.15% for the fiscal year ending January 31, 2024. There was a further increase to 66.76% for the fiscal year ending January 31, 2025. This ratio reflects the company's profitability concerning its total invested capital.
4. Return on Equity (ROE):
- The ROE for Williams-Sonoma Inc, at 66.31%, remained steady for the fiscal years ending January 29, 2023, and January 31, 2023. However, there was a decline to 44.63% for the fiscal years ending January 28, 2024, and January 31, 2024, followed by an improvement to 52.52% for the fiscal year ending January 31, 2025. ROE measures the company's profitability in relation to shareholders' equity.
In summary, the profitability ratios of Williams-Sonoma Inc have shown some fluctuations over the years, with varying levels of performance in generating profits from assets, total capital, and equity. It is essential for stakeholders to monitor these ratios to assess the company's financial health and efficiency in utilizing its resources effectively.