Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Williams-Sonoma Inc., profitability ratios
Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Williams-Sonoma Inc. gross profit margin ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Williams-Sonoma Inc. operating profit margin ratio deteriorated from 2022 to 2023 and from 2023 to 2024. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Williams-Sonoma Inc. net profit margin ratio deteriorated from 2022 to 2023 and from 2023 to 2024. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Williams-Sonoma Inc. ROE deteriorated from 2022 to 2023 and from 2023 to 2024. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Williams-Sonoma Inc. ROA deteriorated from 2022 to 2023 and from 2023 to 2024. |
Gross Profit Margin
Williams-Sonoma Inc., gross profit margin calculation, comparison to benchmarks
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | Feb 3, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Gross profit | 3,303,601) | 3,677,733) | 3,631,963) | 2,636,269) | 2,139,092) | 2,101,013) | |
| Net revenues | 7,750,652) | 8,674,417) | 8,245,936) | 6,783,189) | 5,898,008) | 5,671,593) | |
| Profitability Ratio | |||||||
| Gross profit margin1 | 42.62% | 42.40% | 44.05% | 38.86% | 36.27% | 37.04% | |
| Benchmarks | |||||||
| Gross Profit Margin, Competitors2 | |||||||
| Amazon.com Inc. | — | 46.98% | 43.81% | 42.03% | 39.57% | 40.99% | |
| Home Depot Inc. | 33.38% | 33.53% | 33.63% | 33.95% | 34.09% | 34.34% | |
| Lowe’s Cos. Inc. | 33.39% | 33.23% | 33.30% | 33.01% | 31.80% | 32.12% | |
| TJX Cos. Inc. | 30.00% | 27.61% | 28.50% | 23.66% | 28.46% | 28.59% | |
Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).
1 2024 Calculation
Gross profit margin = 100 × Gross profit ÷ Net revenues
= 100 × 3,303,601 ÷ 7,750,652 = 42.62%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Williams-Sonoma Inc. gross profit margin ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024. |
Operating Profit Margin
Williams-Sonoma Inc., operating profit margin calculation, comparison to benchmarks
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | Feb 3, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Operating income | 1,244,193) | 1,498,422) | 1,453,116) | 910,697) | 465,874) | 435,953) | |
| Net revenues | 7,750,652) | 8,674,417) | 8,245,936) | 6,783,189) | 5,898,008) | 5,671,593) | |
| Profitability Ratio | |||||||
| Operating profit margin1 | 16.05% | 17.27% | 17.62% | 13.43% | 7.90% | 7.69% | |
| Benchmarks | |||||||
| Operating Profit Margin, Competitors2 | |||||||
| Amazon.com Inc. | — | 6.41% | 2.38% | 5.30% | 5.93% | 5.18% | |
| Home Depot Inc. | 14.21% | 15.27% | 15.24% | 13.84% | 14.37% | 14.35% | |
| Lowe’s Cos. Inc. | 13.38% | 10.47% | 12.56% | 10.77% | 8.75% | 5.63% | |
| TJX Cos. Inc. | 10.69% | 9.73% | 9.79% | 1.81% | 10.59% | 10.82% | |
| Operating Profit Margin, Sector | |||||||
| Consumer Discretionary Distribution & Retail | — | 8.63% | 6.44% | 7.38% | 8.11% | 7.68% | |
| Operating Profit Margin, Industry | |||||||
| Consumer Discretionary | — | 9.12% | 8.47% | 8.79% | 6.48% | 7.63% | |
Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).
1 2024 Calculation
Operating profit margin = 100 × Operating income ÷ Net revenues
= 100 × 1,244,193 ÷ 7,750,652 = 16.05%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Williams-Sonoma Inc. operating profit margin ratio deteriorated from 2022 to 2023 and from 2023 to 2024. |
Net Profit Margin
Williams-Sonoma Inc., net profit margin calculation, comparison to benchmarks
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | Feb 3, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net earnings | 949,762) | 1,127,904) | 1,126,337) | 680,714) | 356,062) | 333,684) | |
| Net revenues | 7,750,652) | 8,674,417) | 8,245,936) | 6,783,189) | 5,898,008) | 5,671,593) | |
| Profitability Ratio | |||||||
| Net profit margin1 | 12.25% | 13.00% | 13.66% | 10.04% | 6.04% | 5.88% | |
| Benchmarks | |||||||
| Net Profit Margin, Competitors2 | |||||||
| Amazon.com Inc. | — | 5.29% | -0.53% | 7.10% | 5.53% | 4.13% | |
| Home Depot Inc. | 9.92% | 10.87% | 10.87% | 9.74% | 10.20% | 10.28% | |
| Lowe’s Cos. Inc. | 8.94% | 6.63% | 8.77% | 6.51% | 5.93% | 3.25% | |
| TJX Cos. Inc. | 8.25% | 7.00% | 6.76% | 0.28% | 7.84% | 7.85% | |
| Net Profit Margin, Sector | |||||||
| Consumer Discretionary Distribution & Retail | — | 6.54% | 3.14% | 7.21% | 6.58% | 5.63% | |
| Net Profit Margin, Industry | |||||||
| Consumer Discretionary | — | 7.92% | 5.15% | 9.20% | 5.24% | 5.92% | |
Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).
1 2024 Calculation
Net profit margin = 100 × Net earnings ÷ Net revenues
= 100 × 949,762 ÷ 7,750,652 = 12.25%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Williams-Sonoma Inc. net profit margin ratio deteriorated from 2022 to 2023 and from 2023 to 2024. |
Return on Equity (ROE)
Williams-Sonoma Inc., ROE calculation, comparison to benchmarks
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | Feb 3, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net earnings | 949,762) | 1,127,904) | 1,126,337) | 680,714) | 356,062) | 333,684) | |
| Stockholders’ equity | 2,127,861) | 1,701,051) | 1,664,207) | 1,651,185) | 1,235,860) | 1,155,714) | |
| Profitability Ratio | |||||||
| ROE1 | 44.63% | 66.31% | 67.68% | 41.23% | 28.81% | 28.87% | |
| Benchmarks | |||||||
| ROE, Competitors2 | |||||||
| Amazon.com Inc. | — | 15.07% | -1.86% | 24.13% | 22.84% | 18.67% | |
| Home Depot Inc. | 1,450.48% | 1,095.07% | — | 390.00% | — | — | |
| Lowe’s Cos. Inc. | — | — | — | 406.05% | 217.09% | 63.50% | |
| TJX Cos. Inc. | 61.27% | 54.97% | 54.69% | 1.55% | 55.01% | 60.61% | |
| ROE, Sector | |||||||
| Consumer Discretionary Distribution & Retail | — | 29.39% | 17.48% | 35.05% | 40.86% | 40.77% | |
| ROE, Industry | |||||||
| Consumer Discretionary | — | 30.61% | 21.65% | 34.37% | 25.29% | 34.62% | |
Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).
1 2024 Calculation
ROE = 100 × Net earnings ÷ Stockholders’ equity
= 100 × 949,762 ÷ 2,127,861 = 44.63%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Williams-Sonoma Inc. ROE deteriorated from 2022 to 2023 and from 2023 to 2024. |
Return on Assets (ROA)
Williams-Sonoma Inc., ROA calculation, comparison to benchmarks
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | Feb 3, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net earnings | 949,762) | 1,127,904) | 1,126,337) | 680,714) | 356,062) | 333,684) | |
| Total assets | 5,273,548) | 4,663,016) | 4,625,620) | 4,661,424) | 4,054,042) | 2,812,844) | |
| Profitability Ratio | |||||||
| ROA1 | 18.01% | 24.19% | 24.35% | 14.60% | 8.78% | 11.86% | |
| Benchmarks | |||||||
| ROA, Competitors2 | |||||||
| Amazon.com Inc. | — | 5.76% | -0.59% | 7.93% | 6.64% | 5.14% | |
| Home Depot Inc. | 19.79% | 22.38% | 22.86% | 18.23% | 21.94% | 25.27% | |
| Lowe’s Cos. Inc. | 18.49% | 14.73% | 18.91% | 12.49% | 10.85% | 6.71% | |
| TJX Cos. Inc. | 15.04% | 12.34% | 11.53% | 0.29% | 13.55% | 21.36% | |
| ROA, Sector | |||||||
| Consumer Discretionary Distribution & Retail | — | 8.50% | 4.19% | 9.17% | 9.20% | 8.83% | |
| ROA, Industry | |||||||
| Consumer Discretionary | — | 7.66% | 4.94% | 8.07% | 4.42% | 5.57% | |
Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).
1 2024 Calculation
ROA = 100 × Net earnings ÷ Total assets
= 100 × 949,762 ÷ 5,273,548 = 18.01%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Williams-Sonoma Inc. ROA deteriorated from 2022 to 2023 and from 2023 to 2024. |