Blackline Inc (BL)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 75.21% | 75.12% | 75.26% | 77.01% | 80.39% |
| Operating profit margin | 2.84% | 2.43% | -7.21% | -9.07% | -4.38% |
| Pretax margin | 19.09% | 10.26% | -9.07% | -23.69% | -11.00% |
| Net profit margin | 24.67% | 8.95% | -6.48% | -23.72% | -11.20% |
Blackline Inc's profitability ratios show fluctuating trends over the past five years.
1. Gross Profit Margin: The company's gross profit margin has decreased from 80.39% in 2020 to 75.21% in 2024. This could indicate a potential decrease in the proportion of revenue retained after accounting for the cost of goods sold.
2. Operating Profit Margin: Blackline Inc's operating profit margin has varied significantly, ranging from -9.07% in 2021 to 2.84% in 2024. The negative margins in 2020 and 2021 suggest that the company was not able to generate profits from its core business operations during those years.
3. Pretax Margin: The pretax margin has shown a positive trend, increasing from -23.69% in 2021 to 19.09% in 2024. This indicates an improvement in the company's ability to generate profits before accounting for taxes.
4. Net Profit Margin: The net profit margin also displays an upward trajectory, rising from -23.72% in 2021 to 24.67% in 2024. This suggests that Blackline Inc has been able to increase its bottom line profitability significantly over the years.
Overall, Blackline Inc has managed to improve its profitability over the past five years, as seen from the rising trend in pretax and net profit margins. However, the declining gross profit margin and fluctuating operating profit margin may require further investigation to understand the factors driving these changes in profitability ratios.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 1.02% | 0.68% | -1.94% | -2.12% | -1.38% |
| Return on assets (ROA) | 8.83% | 2.51% | -1.74% | -5.56% | -3.54% |
| Return on total capital | 29.88% | 25.45% | -37.15% | -13.82% | -3.65% |
| Return on equity (ROE) | 36.08% | 20.25% | -30.30% | -31.07% | -9.34% |
Blackline Inc's profitability ratios show a mixed performance over the years.
1. Operating return on assets (Operating ROA) indicates the company's ability to generate profits from its operational assets. The ratio has improved from negative values in 2020 and 2021 to positive values in 2023 and 2024, reaching 1.02% by December 31, 2024.
2. Return on assets (ROA) measures the overall profitability of the company's assets. After posting negative ROA figures in 2020 and 2021, the company saw a significant improvement in 2023 and 2024, achieving 8.83% by the end of December 2024.
3. Return on total capital reflects the company's ability to generate returns for all its capital providers. Although the ratio was negative in the first three years, Blackline Inc showed a remarkable turnaround in the following years, with values reaching 29.88% by December 31, 2024.
4. Return on equity (ROE) assesses the profit generated relative to shareholders' equity. Blackline Inc struggled with negative ROE values from 2020 to 2022, but the company's performance improved significantly in 2023 and 2024, reaching 36.08% by the end of December 2024.
Overall, Blackline Inc has demonstrated an improving trend in profitability ratios, indicating better utilization of assets, enhanced overall profitability, and increased returns for both capital providers and shareholders in recent years.