Profitability Summary

We take all the information about a company's profitability (such as its margins, capital efficiency, free cash flow generating ability, and more) and consolidate it into one single number - the profitability score. The higher the profitability score, the more profitable the company is.

Past Growth

Analyzing past growth in Revenue, Operating Income, and Net Income allows investors to assess the company's profitability and operational efficiency. Consistent improvement in these metrics typically signals long-term strength and stability.

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Margins

Profit margins represent what percentage of sales has turned into profits. Simply put, the percentage figure indicates how many cents of profit the company has generated for each dollar of sale.

Profit margins help investors assess if a company's management is generating enough profit from its sales and whether operating costs and overhead costs are being contained.

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Earnings Waterfall
Adidas AG

Revenue
24.7B EUR
Cost of Revenue
-12B EUR
Gross Profit
12.7B EUR
Operating Expenses
-10.7B EUR
Operating Income
1.9B EUR
Other Expenses
-730m EUR
Net Income
1.2B EUR

Margins Comparison
Adidas AG Competitors

Country Company Market Cap Gross
Margin
Operating
Margin
Net
Margin
DE
Adidas AG
XETRA:ADS
29.7B EUR
51%
8%
5%
FR
LVMH Moet Hennessy Louis Vuitton SE
PAR:MC
313B EUR
66%
22%
13%
FR
Hermes International SCA
PAR:RMS
222.7B EUR
70%
41%
29%
KR
SBW
KRX:102280
235.5T KRW
30%
-4%
-2%
FR
EssilorLuxottica SA
PAR:EL
126.2B EUR
62%
13%
9%
CH
Compagnie Financiere Richemont SA
SIX:CFR
98.4B CHF
66%
21%
19%
FR
Christian Dior SE
PAR:CDI
105.2B EUR
66%
22%
6%
FR
Kering SA
PAR:KER
38.6B EUR
73%
11%
5%
IN
Titan Company Ltd
NSE:TITAN
3.5T INR
22%
9%
6%
CN
ANTA Sports Products Ltd
HKEX:2020
233B HKD
62%
24%
20%
CA
Lululemon Athletica Inc
NASDAQ:LULU
25.3B USD
58%
22%
16%
No Stocks Found

Return on Capital

Return on capital ratios give a sense of how well a company is using its capital (equity, assets, capital employed, etc.) to generate profits (operating income, net income, etc.). In simple words, these ratios show how much income is generated for each dollar of capital invested.

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Return on Capital Comparison
Adidas AG Competitors

Country Company Market Cap ROE ROA ROCE ROIC
DE
Adidas AG
XETRA:ADS
29.7B EUR
22%
6%
18%
10%
FR
LVMH Moet Hennessy Louis Vuitton SE
PAR:MC
313B EUR
17%
8%
16%
10%
FR
Hermes International SCA
PAR:RMS
222.7B EUR
28%
21%
36%
65%
KR
SBW
KRX:102280
235.5T KRW
-2%
-2%
-4%
-4%
FR
EssilorLuxottica SA
PAR:EL
126.2B EUR
6%
4%
7%
5%
CH
Compagnie Financiere Richemont SA
SIX:CFR
98.4B CHF
20%
10%
15%
18%
FR
Christian Dior SE
PAR:CDI
105.2B EUR
20%
3%
16%
10%
FR
Kering SA
PAR:KER
38.6B EUR
5%
2%
5%
3%
IN
Titan Company Ltd
NSE:TITAN
3.5T INR
39%
10%
42%
13%
CN
ANTA Sports Products Ltd
HKEX:2020
233B HKD
25%
14%
23%
19%
CA
Lululemon Athletica Inc
NASDAQ:LULU
25.3B USD
41%
23%
43%
28%
No Stocks Found

Free Cash Flow

Free cash flow (FCF) is the money a company has left over after paying its operating expenses and capital expenditures. The more free cash flow a company has, the more it can allocate to dividends, paying down debt, and growth opportunities.

If a company has a decreasing free cash flow, that is not necessarily bad if the company is investing in its growth.

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