Topbuild Corp (BLD)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 31.32% | 30.03% | 28.30% | 27.79% | 26.35% |
| Operating profit margin | 17.16% | 16.10% | 13.84% | 13.22% | 11.20% |
| Pretax margin | 16.12% | 14.99% | 12.59% | 12.03% | 9.82% |
| Net profit margin | 11.99% | 11.23% | 9.41% | 9.20% | 7.39% |
The profitability ratios of TopBuild Corp have shown consistent improvement over the past five years. The gross profit margin has steadily increased from 25.96% in 2019 to 30.87% in 2023, indicating better control over the cost of goods sold.
The operating profit margin has also shown a positive trend, rising from 11.03% in 2019 to 16.92% in 2023. This improvement suggests that the company is managing its operating expenses more efficiently and is generating more profit from its core operations.
Furthermore, the pretax margin and net profit margin have also shown a steady increase over the years, reflecting the company's ability to generate higher profits relative to its revenues. The pretax margin increased from 9.67% in 2019 to 15.89% in 2023, while the net profit margin increased from 7.28% in 2019 to 11.82% in 2023.
Overall, the improving profitability ratios indicate that TopBuild Corp has been successful in enhancing its operational efficiency and profitability over the past five years. This trend demonstrates the company's ability to generate more profit from its operations and deliver value to its shareholders.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 17.02% | 17.30% | 11.19% | 12.61% | 11.12% |
| Return on assets (ROA) | 11.90% | 12.07% | 7.61% | 8.77% | 7.33% |
| Return on total capital | 22.86% | 23.87% | 14.97% | 17.50% | 15.76% |
| Return on equity (ROE) | 23.96% | 28.81% | 19.80% | 18.31% | 16.57% |
TopBuild Corp's profitability ratios show a generally positive trend over the past five years.
The Operating return on assets (Operating ROA) has remained relatively stable, ranging from 11.12% in 2019 to 17.30% in 2022, with a slight decrease to 17.02% in 2023. This indicates that the company is generating a consistent level of operating income relative to its assets.
Return on assets (ROA) has also shown improvement, with a gradual increase from 7.33% in 2019 to 12.07% in 2022, before declining slightly to 11.90% in 2023. This ratio demonstrates the company's ability to generate profits from its assets.
Return on total capital reflects a similar positive trend, increasing from 15.36% in 2019 to 23.47% in 2022, before slightly decreasing to 22.03% in 2023. This metric indicates the overall efficiency of the company in generating returns from both debt and equity capital employed.
Return on equity (ROE) has shown significant improvement over the years, rising from 16.57% in 2019 to 28.81% in 2022, before settling at 23.96% in 2023. This shows the company's strong ability to generate returns for its shareholders.
Overall, TopBuild Corp's profitability ratios suggest that the company has been effectively utilizing its assets and capital to generate profits and create value for its shareholders.