ANGI Homeservices Inc (ANGI)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 95.14% | 95.40% | 76.84% | 80.66% | 88.20% |
| Operating profit margin | 1.85% | -1.95% | -5.30% | -4.54% | -0.35% |
| Pretax margin | 1.69% | -2.08% | -7.68% | -6.08% | -1.32% |
| Net profit margin | 3.04% | -3.01% | -6.77% | -4.18% | -0.28% |
The profitability ratios of ANGI Homeservices Inc. demonstrate notable trends over the period from December 2020 to December 2024.
The gross profit margin experienced fluctuations during this period, initially decreasing from 88.20% at the end of 2020 to 80.66% in 2021 and declining further to 76.84% in 2022. These decreases indicate a compression in the gross margin, potentially reflecting increased cost of goods sold or reduced revenue efficiency. However, a significant reversal occurs in 2023, with the gross profit margin rising sharply to 95.40%, and maintaining a similar level at 95.14% in 2024. This substantial improvement suggests enhanced cost control, pricing strategies, or revenue recognition efficiencies that positively impacted gross profitability.
Operating profit margins follow a similar downward trend initially, beginning at -0.35% in 2020 and declining to -4.54% in 2021, then to -5.30% in 2022. These negative margins indicate operating losses during these years. The situation begins to improve in 2023 when the operating margin narrows to -1.95%, approaching profitability, and shifts into positive territory in 2024 at 1.85%. The turnaround reflects better operational efficiency and potentially reduced operating expenses relative to revenue.
Pretax margins mirror the pattern seen in operating margins, starting negative at -1.32% in 2020, worsening to -6.08% in 2021, and further to -7.68% in 2022. The margin improves significantly in 2023 to -2.08%, and turns positive at 1.69% in 2024. This shift indicates that pre-tax profitability has substantially recovered, likely driven by operational improvements and favorable non-operating factors.
Net profit margins also exhibit a marked improvement over the period. Beginning at -0.28% in 2020 and declining to -4.18% in 2021, then deepening to -6.77% in 2022, the net margin begins to recover in 2023 (-3.01%) and achieves positive territory at 3.04% in 2024. The movement signifies that the company has resumed generating net income relative to revenue after an extended period of losses, indicating a notable enhancement in overall profitability.
In summary, ANGI Homeservices Inc. experienced a challenging profitability landscape through 2020-2022, with margins consistently in negative or low positive territory. However, from 2023 onward, there is a clear positive trend characterized by sharp improvements in gross, operating, pretax, and net profit margins, culminating in sustained profitability in 2024. This shift suggests effective strategic or operational adjustments that have substantially improved the company's financial performance.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 1.20% | -1.43% | -5.26% | -3.81% | -0.22% |
| Return on assets (ROA) | 1.97% | -2.21% | -6.71% | -3.51% | -0.18% |
| Return on total capital | 3.79% | -0.78% | -7.10% | -6.96% | -0.40% |
| Return on equity (ROE) | 3.39% | -3.93% | -12.21% | -6.21% | -0.33% |
The profitability ratios of ANGI Homeservices Inc., as of the data provided, demonstrate a significant turnaround in recent periods after years characterized by negative performance metrics.
Specifically, the operating return on assets (Operating ROA) exhibited a continued decline from -0.22% at the end of 2020 to a low of -5.26% in 2022, reflecting deteriorating operating efficiency and profitability during that period. However, by the end of 2023, the ratio improved to -1.43%, and in 2024, it turned positive at 1.20%, indicating a meaningful recovery in operating performance and asset utilization.
Similarly, the return on assets (ROA) followed a comparable trajectory. It decreased from -0.18% in 2020 to -6.71% in 2022, reinforcing signs of operational struggles. Yet, the ratio improved towards breakeven in 2023 at -2.21%, and subsequently entered positive territory in 2024 at 1.97%, further affirming improved profitability relative to total assets.
The return on total capital, which assesses the efficiency of total capital employed, mirrored this trend. It dropped sharply from -0.40% in 2020 to -7.10% in 2022. In 2023, there was a notable improvement to -0.78%, and by 2024, the ratio achieved a positive 3.79%, indicating effective leveraging and capital utilization in recent periods.
Finally, the return on equity (ROE), a measure of profitability from shareholders’ perspective, declined from -0.33% in 2020 to a low of -12.21% in 2022. The subsequent recovery was partial, with the ratio improving to -3.93% in 2023. Notably, in 2024, the ROE turned positive at 3.39%, signifying a substantial enhancement in profitability attributable to shareholders.
Overall, the data suggests that ANGI Homeservices Inc experienced a period of significant losses over the years 2020 through 2022, but has shown a clear recovery phase starting in 2023 and culminating in profitability in 2024 across all key profitability ratios. This trend indicates recent operational improvements, better asset and capital management, and increased return to shareholders.