Brinks Company (BCO)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 19.28% | 20.14% | 20.33% | 19.89% | 20.85% |
| Operating profit margin | 9.26% | 8.33% | 8.73% | 5.94% | 6.62% |
| Pretax margin | 4.94% | 4.89% | 5.55% | 2.02% | 2.52% |
| Net profit margin | 1.91% | 3.94% | 2.59% | 0.45% | 0.81% |
Brink's Co.'s profitability ratios indicate fluctuating performance over the past five years. The gross profit margin has been relatively stable, ranging from 22.04% to 23.95%. This suggests the company has been effective in managing its cost of goods sold.
The operating profit margin has shown an increasing trend, improving from 6.21% in 2020 to 9.83% in 2023. This signifies that Brink's Co. has been able to control its operating expenses more efficiently to generate higher profits from its core operations.
The pretax margin has shown some variability, with a notable increase from 2.15% in 2020 to 4.84% in 2023. This could indicate improvements in the company's overall financial performance before accounting for taxes.
However, the net profit margin has been more volatile, with significant fluctuations from 0.43% to 3.76% over the period. This suggests that factors beyond operating efficiency and revenue generation, such as interest expenses and taxes, have influenced Brink's Co.'s bottom-line profitability.
In conclusion, while Brink's Co. has shown some positive developments in its profitability ratios, the company should continue to closely monitor and manage its costs and overall financial performance to sustain and improve its 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) | 6.44% | 5.68% | 6.37% | 4.16% | 6.29% |
| Return on assets (ROA) | 1.33% | 2.68% | 1.89% | 0.31% | 0.77% |
| Return on total capital | 11.77% | 9.43% | 11.39% | 6.87% | 10.34% |
| Return on equity (ROE) | 22.07% | 38.16% | 85.53% | 12.42% | 15.12% |
Brink's Co. has shown a stable trend in its profitability ratios over the past five years. The operating return on assets (Operating ROA) has gradually increased from 6.54% in 2019 to 7.26% in 2023, indicating the company's ability to generate operating income from its assets has improved consistently.
The Return on assets (ROA) shows a fluctuating pattern, with a significant decrease in 2023 to 1.33% from 2.68% in 2022. This indicates that the company's overall profitability in relation to its total assets has decreased, possibly due to changes in operations or asset utilization efficiency.
The Return on total capital has also shown a varying trend, peaking at 14.57% in 2019 and then fluctuating between 9.12% and 12.46% in the subsequent years. This ratio reflects the company's ability to generate returns for both equity and debt providers.
The Return on equity (ROE) has been volatile, with a sharp increase to 85.53% in 2021 followed by a decline to 22.07% in 2023. This indicates that shareholders' returns have been inconsistent, possibly due to changes in leverage or net income variability.
Overall, Brink's Co. has demonstrated a mix of improving and declining profitability metrics over the past five years, suggesting the need for analysis on the company's operational efficiency and financial structure to maintain and enhance its profitability in the future.