Williams-Sonoma Inc (WSM)
Profitability ratios
Return on sales
| Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | Nov 1, 2020 | Aug 2, 2020 | May 3, 2020 | Feb 2, 2020 | Nov 3, 2019 | Aug 4, 2019 | May 5, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 42.62% | 41.20% | 40.58% | 41.27% | 42.40% | 43.49% | 44.05% | 44.20% | 44.05% | 43.17% | 42.29% | 40.74% | 38.83% | 37.31% | 36.19% | 35.78% | 36.26% | 36.60% | 36.74% | 37.01% |
| Operating profit margin | 16.05% | 15.85% | 15.49% | 16.10% | 17.27% | 17.81% | 18.00% | 17.90% | 17.62% | 16.54% | 16.43% | 15.57% | 13.41% | 11.24% | 8.97% | 7.47% | 7.90% | 7.86% | 7.85% | 7.77% |
| Pretax margin | 16.43% | 16.07% | 15.62% | 16.19% | 17.30% | 17.82% | 18.00% | 17.90% | 17.60% | 16.49% | 16.31% | 15.35% | 13.18% | 11.00% | 8.76% | 7.32% | 7.75% | 7.71% | 7.69% | 7.63% |
| Net profit margin | 12.25% | 11.99% | 11.67% | 12.07% | 13.00% | 13.48% | 13.68% | 13.74% | 13.66% | 12.83% | 12.69% | 11.96% | 10.03% | 8.49% | 6.83% | 5.75% | 6.04% | 5.86% | 6.07% | 5.98% |
Williams-Sonoma Inc's profitability ratios have shown varying trends over the past several quarters.
The gross profit margin has fluctuated within a relatively narrow range, indicating consistency in the company's ability to generate profits from its core operations. Despite some fluctuations, the gross profit margin has generally remained above 40%, reflecting strong cost control and pricing strategies.
The operating profit margin has also shown stability, albeit with a slight downward trend in recent quarters. This could suggest that while the company is able to maintain profitability at the operating level, there may be some pressures on operating expenses or inefficiencies impacting overall profitability.
The pretax margin has followed a similar pattern to the operating profit margin, showing a slight decline over time. This trend may indicate that factors beyond operating expenses, such as interest expenses or other non-operating costs, are impacting the company's profitability.
The net profit margin, which represents the final profitability after all expenses have been accounted for, has also experienced a downward trend in recent quarters. This could imply that while the company is able to generate profits from its core operations, there may be increasing non-operating expenses or taxes affecting the bottom line.
Overall, Williams-Sonoma Inc's profitability ratios suggest a generally sound financial performance, with consistent gross profit margins and stable operating margins. However, the downward trends in pretax and net profit margins indicate potential challenges that the company may need to address to sustain or improve its overall profitability in the future.
Return on investment
| Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | Nov 1, 2020 | Aug 2, 2020 | May 3, 2020 | Feb 2, 2020 | Nov 3, 2019 | Aug 4, 2019 | May 5, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 23.59% | 25.72% | 28.01% | 30.74% | 32.13% | 33.81% | 35.74% | 35.66% | 31.41% | 29.72% | 30.03% | 27.67% | 19.54% | 16.52% | 12.02% | 9.97% | 11.49% | 11.68% | 11.77% | 11.71% |
| Return on assets (ROA) | 18.01% | 19.46% | 21.10% | 23.04% | 24.19% | 25.60% | 27.17% | 27.37% | 24.35% | 23.06% | 23.19% | 21.24% | 14.60% | 12.48% | 9.15% | 7.67% | 8.78% | 8.71% | 9.10% | 9.01% |
| Return on total capital | 58.47% | 69.26% | 78.99% | 93.70% | 88.09% | 109.93% | 120.77% | 114.63% | 87.32% | 86.22% | 83.51% | 78.58% | 55.15% | 41.87% | 33.06% | 29.00% | 37.70% | 32.34% | 32.05% | 31.20% |
| Return on equity (ROE) | 44.63% | 52.41% | 59.52% | 70.24% | 66.31% | 83.22% | 91.82% | 88.01% | 67.68% | 66.89% | 64.49% | 60.33% | 41.23% | 38.36% | 30.82% | 27.80% | 28.81% | 30.51% | 31.39% | 30.41% |
The profitability ratios of Williams-Sonoma Inc have shown a positive trend over the analyzed period.
The operating return on assets (Operating ROA) has generally increased, indicating that the company has been generating more operating income relative to its total assets. This suggests efficient operations and effective asset utilization.
The return on assets (ROA) has also shown a similar upward trend, reflecting the company's ability to generate profits from its assets. This indicates solid profitability and effective management of assets.
The return on total capital has demonstrated significant variability but with an overall increasing trend. This ratio measures the return generated from all sources of capital, including debt and equity. The fluctuation could be due to changes in the capital structure, but the increasing trend signifies improving profitability relative to the total capital employed.
The return on equity (ROE) has followed a positive trajectory as well, indicating the company's ability to generate returns for its shareholders. This ratio reflects how effectively the company is utilizing shareholders' equity to generate profits. The increasing ROE implies that the company is generating higher returns on the shareholders' investment.
In conclusion, the profitability ratios of Williams-Sonoma Inc have shown consistent improvement over the analyzed period, reflecting efficient operations, effective asset management, and increasing returns for shareholders.