ArcBest Corp (ARCB)
Profitability ratios
Return on sales
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 59.54% | 61.04% | 63.53% | 65.57% | 66.91% | 67.15% | 66.02% | 64.01% | 61.12% | 68.33% | 67.27% | 66.57% | 65.53% | 63.40% | 63.27% | 63.17% | 63.27% | 64.83% | 65.28% | 65.68% |
| Operating profit margin | 3.84% | 3.51% | 4.79% | 6.34% | 7.50% | 8.18% | 8.17% | 7.60% | 7.03% | 6.20% | 5.19% | 3.99% | 3.34% | 2.00% | 1.70% | 2.11% | 2.13% | 3.68% | 4.44% | 3.38% |
| Pretax margin | 5.35% | 4.86% | 6.03% | 7.30% | 7.38% | 8.07% | 8.03% | 7.51% | 6.93% | 6.11% | 5.13% | 3.95% | 3.14% | 1.77% | 1.21% | 1.59% | 1.72% | 2.76% | 3.72% | 2.64% |
| Net profit margin | 4.35% | 3.95% | 4.88% | 5.81% | 5.60% | 6.19% | 6.10% | 5.78% | 5.34% | 4.75% | 4.05% | 3.01% | 2.42% | 1.46% | 1.01% | 1.24% | 1.34% | 2.00% | 2.77% | 2.00% |
ArcBest Corp has maintained a stable gross profit margin of 100% across all quarters, indicating strong control over production costs relative to revenues. However, there has been a declining trend in operating profit margin from 7.50% in Q4 2022 to 3.90% in Q4 2023, reflecting a decrease in efficiency in managing operating expenses.
The pretax margin has also decreased from 7.38% in Q4 2022 to 4.22% in Q4 2023, suggesting challenges in generating profits before accounting for taxes. Similarly, the net profit margin has shown a downward trend, declining from 6.20% in Q4 2022 to 4.41% in Q4 2023, indicating that the company's profitability after all expenses and taxes has weakened.
Overall, the declining trend in operating profit margin, pretax margin, and net profit margin raises concerns about ArcBest Corp's ability to maintain profits relative to its revenue generation in recent quarters. Further analysis of cost management and revenue generation strategies may be needed to address these declining profitability ratios.
Return on investment
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.95% | 6.70% | 9.67% | 13.47% | 16.01% | 17.67% | 17.59% | 15.47% | 13.30% | 11.43% | 9.59% | 6.94% | 5.52% | 3.25% | 2.58% | 3.43% | 3.86% | 6.71% | 8.39% | 6.73% |
| Return on assets (ROA) | 7.86% | 7.55% | 9.85% | 12.33% | 11.96% | 13.37% | 13.13% | 11.75% | 10.11% | 8.76% | 7.48% | 5.24% | 4.00% | 2.38% | 1.52% | 2.02% | 2.42% | 3.64% | 5.22% | 3.99% |
| Return on total capital | 12.29% | 11.69% | 16.93% | 27.16% | 29.58% | 38.29% | 37.95% | 34.76% | 30.24% | 23.34% | 19.65% | 14.40% | 11.86% | 7.08% | 6.22% | 8.30% | 8.36% | 14.69% | 18.44% | 14.54% |
| Return on equity (ROE) | 15.73% | 15.07% | 19.64% | 24.87% | 25.90% | 28.98% | 28.33% | 26.42% | 22.98% | 17.89% | 15.33% | 10.86% | 8.58% | 5.19% | 3.68% | 4.87% | 5.24% | 7.97% | 11.48% | 8.62% |
ArcBest Corp's profitability ratios have shown some fluctuations over the past eight quarters.
1. Operating return on assets (Operating ROA), measuring the company's operating income generated per dollar of assets, has decreased from 16.01% in Q4 2022 to 6.95% in Q4 2023, indicating a decline in operational efficiency.
2. Return on assets (ROA), which reflects the company's overall ability to generate profits from its assets, has also shown variability, ranging from 7.55% in Q3 2023 to 12.33% in Q1 2023.
3. Return on total capital, a measure of the return generated from all invested capital, has experienced significant fluctuations, with a high of 31.57% in Q2 2022 and a low of 11.73% in Q4 2023.
4. Return on equity (ROE), indicating the return earned on shareholders' equity, has ranged from 15.07% in Q3 2023 to 28.98% in Q3 2022, showing variability in shareholder value creation.
Overall, while ArcBest Corp has demonstrated the ability to generate healthy returns on assets and equity over the period, the fluctuations in these profitability ratios suggest the need for further analysis to understand the factors influencing the company's financial performance.