Brinks Company (BCO)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 25.32% | 23.95% | 23.67% | 22.96% | 22.04% |
| Operating profit margin | 9.04% | 8.72% | 7.73% | 8.44% | 5.78% |
| Pretax margin | 5.31% | 4.84% | 4.99% | 5.61% | 2.15% |
| Net profit margin | 3.25% | 1.80% | 3.76% | 2.50% | 0.62% |
Brinks Company has shown an improvement in its profitability ratios over the past five years.
- The Gross Profit Margin has increased steadily from 22.04% in 2020 to 25.32% in 2024, indicating the company's ability to efficiently manage its production costs and generate profits from its core operations.
- The Operating Profit Margin has also shown a positive trend, rising from 5.78% in 2020 to 9.04% in 2024, reflecting Brinks Company's effective management of operating expenses and improved operational efficiency.
- The Pretax Margin, although fluctuating slightly, has remained relatively stable over the years, ranging from 2.15% in 2020 to 5.31% in 2024, indicating the company's ability to generate profits before accounting for taxes.
- The Net Profit Margin has shown variability but has generally increased from 0.62% in 2020 to 3.25% in 2024, demonstrating the company's ability to generate profits after accounting for all expenses, including taxes.
Overall, Brinks Company has shown a positive trend in its profitability ratios, indicating effective cost management, operational efficiency, and improved profitability over the years.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.84% | 6.44% | 5.51% | 6.37% | 4.16% |
| Return on assets (ROA) | 2.46% | 1.33% | 2.68% | 1.89% | 0.44% |
| Return on total capital | 160.54% | 110.62% | 64.40% | 133.25% | 82.07% |
| Return on equity (ROE) | 52.13% | 22.07% | 29.92% | 41.65% | 11.21% |
Brinks Company's profitability ratios have shown a mixed performance over the past five years. The Operating return on assets (Operating ROA) has improved steadily from 4.16% in 2020 to 6.84% in 2024. This indicates that the company's ability to generate operating income from its assets has been strengthening.
The Return on assets (ROA) fluctuated over the period, reaching a peak of 2.68% in 2022 but then dropping to 1.33% in 2023 before rebounding to 2.46% in 2024. This suggests that Brinks' overall profitability in relation to its total assets saw some volatility but ended on a positive note.
The Return on total capital exhibited significant variation, with a high of 160.54% in 2024 and a low of 64.40% in 2022. This ratio reflects the company's ability to generate returns for both debt and equity holders. The fluctuation in this ratio may indicate changes in the capital structure or efficiency of capital utilization within the organization.
The Return on equity (ROE) demonstrated a similar trend to the Operating ROA, increasing from 11.21% in 2020 to 52.13% in 2024. This indicates that Brinks has been able to enhance shareholder value by generating higher returns on their invested equity over the years.
Overall, Brinks Company has shown improvements in profitability ratios, particularly in terms of operating efficiency and return on equity. However, the fluctuating trends in some ratios suggest a need for further analysis to understand the underlying reasons for these variations and to identify areas for potential improvement.