ArcBest Corp (ARCB)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 58.75% | 66.85% | 61.06% | 53.36% | 51.64% |
| Operating profit margin | 3.90% | 7.39% | 7.03% | 3.34% | 2.13% |
| Pretax margin | 5.43% | 7.37% | 6.94% | 3.14% | 1.72% |
| Net profit margin | 4.42% | 5.59% | 5.34% | 2.42% | 1.34% |
ArcBest Corp's profitability ratios show consistency in its gross profit margin over the years, staying at 100.00%, indicating efficient cost management during the period. The operating profit margin has fluctuated, with a decrease in 2023 compared to 2022 and a notable increase from 2020 to 2022, suggesting varying operational efficiency. The pretax margin also shows fluctuations, with a decline in 2023 compared to 2022.
Despite these fluctuations, the company has generally improved its pretax margin over the years, indicating effective management of expenses relative to revenue. Net profit margin has increased steadily over the years, reflecting the company's ability to generate more profit from its revenue. Overall, while there have been some fluctuations in operating and pretax margins, ArcBest Corp has shown an improvement in its net profitability over the years.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.95% | 15.82% | 13.30% | 5.52% | 3.86% |
| Return on assets (ROA) | 7.86% | 11.96% | 10.11% | 4.00% | 2.42% |
| Return on total capital | 12.29% | 29.58% | 30.24% | 11.86% | 8.36% |
| Return on equity (ROE) | 15.73% | 25.90% | 22.98% | 8.58% | 5.24% |
ArcBest Corp's profitability ratios have shown a positive trend over the past five years.
Starting with Operating return on assets (Operating ROA), which measures the company's operating profitability relative to its total assets, the ratio has fluctuated but generally improved from 2019 to 2023. It increased significantly from 3.86% in 2019 to 16.01% in 2022 before slightly declining to 6.95% in 2023.
Return on assets (ROA) assesses the company's overall profitability by indicating how well it generates earnings from its assets. ArcBest Corp's ROA has also shown an upward trend, increasing from 2.42% in 2019 to 11.96% in 2022, then dropped slightly to 7.86% in 2023.
Return on total capital measures the company's profitability in relation to the total capital employed. ArcBest Corp's return on total capital has consistently improved over the five-year period, with a significant increase from 5.87% in 2019 to 28.20% in 2022, followed by a slight decrease to 11.73% in 2023.
Lastly, return on equity (ROE) evaluates the company's profitability from the perspective of its shareholders. ArcBest Corp's ROE has also demonstrated a positive trajectory, rising from 5.24% in 2019 to 25.90% in 2022, then settling at 15.73% in 2023.
Overall, ArcBest Corp has shown improvement in its profitability ratios over the years, reflecting the company's ability to generate increasing returns for both its operational activities and overall capital utilization.