Topbuild Corp (BLD)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 30.48% | 31.32% | 30.03% | 28.30% | 27.79% |
| Operating profit margin | 16.63% | 17.16% | 16.10% | 13.84% | 13.22% |
| Pretax margin | 15.77% | 16.12% | 14.99% | 12.59% | 12.03% |
| Net profit margin | 11.68% | 11.99% | 11.23% | 9.41% | 9.20% |
Topbuild Corp has shown a positive trend in its profitability ratios over the period from December 31, 2020, to December 31, 2024.
1. Gross Profit Margin: Topbuild Corp's gross profit margin increased steadily from 27.79% in 2020 to 30.48% in 2024. This indicates the company's ability to efficiently manage its production costs and generate a higher percentage of profit from its revenue.
2. Operating Profit Margin: The company's operating profit margin also witnessed a positive trend, rising from 13.22% in 2020 to 16.63% in 2024. This indicates effective cost management and improved operational efficiency over the period.
3. Pretax Margin: Topbuild Corp's pretax margin increased consistently from 12.03% in 2020 to 15.77% in 2024. This signifies the company's ability to generate higher profits before accounting for taxes, reflecting improved overall financial performance.
4. Net Profit Margin: The net profit margin of Topbuild Corp experienced a growth from 9.20% in 2020 to 11.68% in 2024. This indicates that the company was able to increase its profitability after accounting for all expenses, including interest and taxes.
Overall, the improvement in all these profitability ratios reflects Topbuild Corp's effective management of costs, enhanced operational efficiency, and ability to generate higher profits over the analyzed period.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 18.72% | 17.02% | 17.30% | 11.19% | 12.61% |
| Return on assets (ROA) | 13.15% | 11.90% | 12.07% | 7.61% | 8.77% |
| Return on total capital | 25.06% | 22.86% | 23.87% | 14.97% | 17.50% |
| Return on equity (ROE) | 28.18% | 23.96% | 28.81% | 19.80% | 18.31% |
Based on the provided data, we can analyze the profitability ratios of Topbuild Corp as follows:
1. Operating Return on Assets (Operating ROA): This ratio indicates the company's operating profit generated per dollar of assets. We observe a fluctuation in the Operating ROA over the years, with values ranging from 11.19% to 18.72%. The highest Operating ROA was recorded on December 31, 2024, at 18.72%, showcasing an improvement in operational efficiency and asset utilization.
2. Return on Assets (ROA): ROA measures the company's overall profitability in generating earnings from its assets. Topbuild Corp's ROA varied from 7.61% to 13.15% during the analyzed period. The highest ROA of 13.15% was achieved on December 31, 2024, reflecting an increase in profitability relative to its asset base.
3. Return on Total Capital: This ratio assesses the return earned on both equity and debt capital invested in the business. Topbuild Corp demonstrated a fluctuation in Return on Total Capital, ranging from 14.97% to 25.06%. The highest return of 25.06% was achieved on December 31, 2024, indicating efficient capital utilization and potential value creation for both debt and equity holders.
4. Return on Equity (ROE): ROE measures the return earned on the shareholders' equity investment in the company. Topbuild Corp's ROE ranged from 18.31% to 28.18% during the period analyzed. The highest ROE of 28.18% was recorded on December 31, 2024, demonstrating the company's ability to generate significant returns for its equity investors.
In summary, Topbuild Corp has shown generally positive trends in profitability ratios over the years, indicating effective management of assets, capital, and equity to generate returns for its stakeholders. The increasing values of these ratios suggest improved operational efficiency and profitability, potentially attracting investors due to the company's ability to generate strong returns.