ArcBest Corp (ARCB)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 56.85% | 58.75% | 66.85% | 61.06% | 53.36% |
| Operating profit margin | 5.84% | 3.90% | 7.39% | 7.03% | 3.34% |
| Pretax margin | 5.24% | 5.43% | 7.37% | 6.94% | 3.14% |
| Net profit margin | 4.16% | 4.42% | 5.59% | 5.34% | 2.42% |
ArcBest Corp has shown a consistent improvement in its gross profit margin over the years, starting at 53.36% in December 2020 and reaching 66.85% by December 2022. However, there was a slight decline in the gross profit margin to 56.85% by December 2024. This indicates the company's ability to control its production costs and generate higher margins on its goods or services.
In terms of operating profit margin, ArcBest Corp has also demonstrated a positive trend, increasing from 3.34% in December 2020 to 7.39% by December 2022. Although there was a slight decrease to 5.84% by December 2024, the company has still managed to maintain a healthy operating profit margin, indicating efficient management of operating expenses to generate profits.
Likewise, the pretax margin of ArcBest Corp improved from 3.14% in December 2020 to 7.37% in December 2022 before declining slightly to 5.24% by December 2024. This metric reflects the company's ability to generate profits before accounting for taxes, showing overall profitability levels.
Lastly, the net profit margin of ArcBest Corp also exhibited positive growth, increasing from 2.42% in December 2020 to 5.59% by December 2022. Despite decreasing to 4.16% by December 2024, the company has maintained a reasonable level of net profit margin, indicating its ability to convert revenue into profits after accounting for all expenses.
Overall, ArcBest Corp's profitability ratios demonstrate a generally positive performance, with improvements in gross profit margin, operating profit margin, pretax margin, and net profit margin over the years, reflecting effective cost management and operational efficiency.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 10.06% | 6.95% | 15.82% | 13.30% | 5.52% |
| Return on assets (ROA) | 7.16% | 7.86% | 11.96% | 10.11% | 4.00% |
| Return on total capital | 16.98% | 12.29% | 29.58% | 30.24% | 11.86% |
| Return on equity (ROE) | 13.24% | 15.73% | 25.90% | 22.98% | 8.58% |
ArcBest Corp's profitability ratios have shown variability over the years based on the provided data.
1. Operating return on assets (Operating ROA):
- ArcBest Corp's Operating ROA has fluctuated significantly, ranging from 5.52% in 2020 to a peak of 15.82% in 2022 before declining to 6.95% in 2023 and then slightly recovering to 10.06% in 2024. These fluctuations may indicate changes in the company's operating efficiency and effectiveness in generating profits from its assets.
2. Return on assets (ROA):
- The Return on Assets ratio also fluctuated, with a low of 4.00% in 2020, reaching a peak of 11.96% in 2022 before decreasing to 7.16% in 2024. This ratio reflects the company's overall ability to generate profits from its total assets, including those financed by debt and equity.
3. Return on total capital:
- ArcBest Corp's Return on Total Capital ratio varied, with the highest being 30.24% in 2021 and the lowest at 12.29% in 2023. This ratio indicates the company's efficiency in generating profits from both equity and debt capital employed.
4. Return on equity (ROE):
- The Return on Equity ratio also showed fluctuations, with the highest value of 25.90% in 2022 and the lowest at 13.24% in 2024. ROE reflects the return generated on the shareholders' equity investment in the company.
Overall, ArcBest Corp's profitability ratios suggest that the company has experienced varying levels of profitability over the years, impacted by factors such as operating efficiency, asset management, capital structure, and shareholder equity returns. Analysts may delve deeper into the company's financial performance and strategic decisions to understand the drivers behind these fluctuations in profitability ratios.