Brunswick Corporation (BC)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 25.79% | 100.00% | 28.58% | 28.50% | 27.90% |
| Operating profit margin | 5.95% | 11.48% | 13.91% | 13.90% | 12.40% |
| Pretax margin | 3.88% | 9.82% | 12.53% | 12.60% | 10.87% |
| Net profit margin | 2.85% | 6.57% | 9.94% | 10.15% | 8.57% |
Brunswick Corporation's profitability ratios show varying trends over the years. The gross profit margin has been relatively stable, increasing slightly from 27.90% in 2020 to 28.58% in 2022 before experiencing a significant spike to 100.00% in 2023, which may raise questions about the accuracy of the data for that year. However, the margin decreased to 25.79% in 2024.
Similarly, the operating profit margin improved from 12.40% in 2020 to 13.91% in 2022 before declining to 5.95% in 2024. This downward trend indicates potential challenges in managing operating expenses or generating sufficient operating income.
The pretax margin also shows fluctuations, with an increase from 10.87% in 2020 to 12.60% in 2021 and a subsequent decline to 3.88% in 2024. This decreasing trend suggests potential issues with profitability before accounting for taxes.
The net profit margin, a key indicator of overall profitability, followed a similar pattern, increasing from 8.57% in 2020 to 10.15% in 2021 but then declining to 2.85% in 2024. This decrease indicates a significant reduction in Brunswick Corporation's bottom-line profitability, which could be a cause for concern for investors and stakeholders.
In summary, while the gross profit margin remained relatively stable, the operating, pretax, and net profit margins exhibited declining trends over the period, signaling potential challenges in managing costs and sustaining overall profitability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.49% | 11.80% | 14.99% | 14.98% | 14.30% |
| Return on assets (ROA) | 2.63% | 6.75% | 10.71% | 10.94% | 9.88% |
| Return on total capital | 164.95% | 35.21% | 46.62% | 41.92% | 35.77% |
| Return on equity (ROE) | 74.65% | 20.14% | 33.15% | 30.99% | 24.68% |
Based on the provided data, we can analyze the profitability ratios of Brunswick Corporation as follows:
1. Operating Return on Assets (Operating ROA):
- The Operating ROA of Brunswick Corporation has been relatively stable over the years, ranging from 14.30% in 2020 to 14.99% in 2022. However, there was a slight decline in 2023 to 11.80% and a significant drop to 5.49% in 2024. This indicates that the company's ability to generate operating profit from its assets decreased significantly in 2024.
2. Return on Assets (ROA):
- The ROA of Brunswick Corporation also followed a similar trend, starting at 9.88% in 2020 and peaking at 10.94% in 2021 before declining to 2.63% in 2024. This ratio reflects the overall efficiency of the company in generating profits from its total assets, and the declining trend suggests a decrease in asset utilization or profitability over time.
3. Return on Total Capital:
- The Return on Total Capital for Brunswick Corporation experienced significant fluctuations, with a notable increase from 35.77% in 2020 to 164.95% in 2024. This suggests that the company may have been able to utilize its total capital more efficiently to generate returns in 2024 compared to previous years.
4. Return on Equity (ROE):
- The ROE of Brunswick Corporation shows a similar pattern to the other profitability ratios, with an increase from 24.68% in 2020 to 74.65% in 2024. This signifies the company's ability to generate profits for its shareholders from the equity invested in the business, showing a positive trend in shareholder value creation over the years.
Overall, while the company's profitability ratios showed some fluctuations and declines in certain years, Brunswick Corporation managed to improve its Return on Total Capital and Return on Equity over the period analyzed, indicating efficient capital utilization and enhanced shareholder value. However, the declining trend in operating profitability and ROA warrants further investigation into the company's operational efficiency and asset management strategies.