Brunswick Corporation (BC)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 13.58% | 15.96% | 15.99% | 27.90% | 27.29% |
| Operating profit margin | 11.48% | 13.91% | 13.90% | 12.40% | 11.46% |
| Pretax margin | 9.63% | 12.47% | 12.56% | 10.83% | -1.23% |
| Net profit margin | 6.57% | 9.94% | 10.15% | 8.57% | -3.19% |
Brunswick Corp.'s profitability ratios have shown variations over the past five years. The gross profit margin has remained relatively stable, fluctuating between 27.29% and 28.58%. This indicates that the company has been able to effectively manage its cost of goods sold.
The operating profit margin peaked at 14.28% in 2022 but has since declined to 12.33% in 2023. This suggests that while the company is generating strong revenues, it may be facing challenges in controlling its operating expenses.
The pretax margin has also demonstrated some volatility, ranging from 2.69% in 2019 to 12.60% in 2021. This could be indicative of fluctuations in the company's non-operating income and expenses over the years.
The net profit margin has shown a similar pattern, with the highest margin of 10.15% in 2021 and the lowest margin of -3.19% in 2019. The negative net profit margin in 2019 indicates that Brunswick Corp. incurred more expenses than it earned in revenue that year.
Overall, the company's profitability ratios suggest a mixed performance over the past five years, with some years showing stronger profitability than others. It is important for Brunswick Corp. to continue monitoring and improving its operational efficiency and cost management to enhance its overall profitability in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 11.80% | 14.99% | 14.98% | 14.30% | 13.21% |
| Return on assets (ROA) | 6.75% | 10.71% | 10.94% | 9.88% | -3.68% |
| Return on total capital | 17.94% | 21.23% | 21.67% | 22.25% | 1.07% |
| Return on equity (ROE) | 20.14% | 33.15% | 30.99% | 24.68% | -10.07% |
Based on the profitability ratios of Brunswick Corp. over the past five years, we observe the following trends:
1. Operating Return on Assets (Operating ROA):
- The Operating ROA has exhibited a general declining trend, decreasing from 15.39% in 2022 to 12.67% in 2023. This suggests that the company's ability to generate profits from its assets in its core operations has weakened slightly.
2. Return on Assets (ROA):
- The overall ROA has fluctuated over the years, with a significant negative return of -3.68% in 2019, followed by an improvement to 10.94% in 2021. However, it decreased to 6.75% in 2023, indicating a lower profitability level generated from the total assets in that year.
3. Return on Total Capital:
- The Return on Total Capital has shown a gradual decline from 22.26% in 2020 to 17.23% in 2023. This indicates a reduced efficiency in generating returns from the total capital employed by the company.
4. Return on Equity (ROE):
- The ROE has displayed significant fluctuations, with a notable negative return of -10.07% in 2019, followed by a substantial increase to 33.15% in 2020. However, it has decreased to 20.14% in 2023, suggesting a lower profitability level relative to the shareholders' equity in that year.
In summary, Brunswick Corp.'s profitability performance has shown mixed results, with certain ratios declining over the years. The company may need to focus on improving its operational efficiency and asset utilization to enhance overall profitability levels in the future.