Topbuild Corp (BLD)
Profitability ratios
Return on sales
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 31.32% | 31.15% | 30.78% | 30.26% | 30.02% | 29.30% | 28.96% | 28.56% | 28.29% | 28.57% | 28.27% | 27.86% | 27.72% | 27.32% | 26.77% | 26.52% | 26.25% | 25.97% | 25.55% | 24.81% |
| Operating profit margin | 17.16% | 17.20% | 16.98% | 16.52% | 16.10% | 14.98% | 14.46% | 14.04% | 13.83% | 14.81% | 14.48% | 13.75% | 13.18% | 12.47% | 11.74% | 11.52% | 11.16% | 10.82% | 10.37% | 9.26% |
| Pretax margin | 16.12% | 16.06% | 15.80% | 15.33% | 14.99% | 13.90% | 13.50% | 13.16% | 12.59% | 13.54% | 13.07% | 12.16% | 12.00% | 11.22% | 10.44% | 10.19% | 9.78% | 9.39% | 8.92% | 7.86% |
| Net profit margin | 12.00% | 11.99% | 11.77% | 11.45% | 11.23% | 10.31% | 10.02% | 9.77% | 9.41% | 10.16% | 9.82% | 9.24% | 9.17% | 8.44% | 7.92% | 7.75% | 7.36% | 7.14% | 6.72% | 5.85% |
TopBuild Corp's profitability ratios have shown a positive trend over the past eight quarters. The gross profit margin has been steadily increasing, indicating the company's ability to effectively manage its cost of goods sold. This suggests efficient production and pricing strategies which have improved profitability at the gross level.
The operating profit margin has also demonstrated consistent growth, reflecting the company's effectiveness in controlling operating expenses while generating revenue. This shows that TopBuild Corp has been able to maintain healthy profitability after accounting for both cost of goods sold and operating expenses.
Furthermore, the pretax margin, which represents the company's ability to generate profits before accounting for taxes, has shown an upward trajectory. This indicates that TopBuild Corp has been successful in managing not only its operational expenses but also its tax liabilities which has improved overall profitability.
Lastly, the net profit margin, which indicates the percentage of revenue that translates into net income after all expenses have been deducted, has also shown improvement. This suggests that the company has been able to effectively manage its financial obligations including interest payments and income taxes, resulting in increased profitability.
Overall, the positive trend in TopBuild Corp's profitability ratios highlights the company's strong financial performance and effective management of costs and expenses, ultimately leading to improved profitability over the past quarters.
Return on investment
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 17.02% | 17.49% | 17.75% | 17.71% | 17.30% | 15.81% | 14.10% | 12.48% | 11.19% | 14.77% | 14.30% | 13.17% | 12.61% | 11.95% | 11.51% | 11.51% | 11.12% | 10.60% | 10.23% | 9.11% |
| Return on assets (ROA) | 11.90% | 12.20% | 12.31% | 12.28% | 12.07% | 10.89% | 9.78% | 8.69% | 7.61% | 10.14% | 9.70% | 8.85% | 8.77% | 8.09% | 7.76% | 7.74% | 7.33% | 7.00% | 6.63% | 5.76% |
| Return on total capital | 22.86% | 23.51% | 23.96% | 24.07% | 23.87% | 21.83% | 19.62% | 17.35% | 14.97% | 20.00% | 19.26% | 17.64% | 17.50% | 16.72% | 16.15% | 16.22% | 15.76% | 15.00% | 14.36% | 12.83% |
| Return on equity (ROE) | 23.96% | 25.40% | 26.71% | 27.95% | 28.81% | 26.74% | 24.80% | 22.32% | 19.80% | 20.26% | 19.73% | 18.34% | 18.31% | 17.34% | 17.02% | 17.27% | 16.57% | 15.75% | 15.00% | 13.27% |
TopBuild Corp has exhibited a consistent improvement in its profitability ratios over the analyzed period. The Operating Return on Assets (Operating ROA) has shown a steady increase, indicating efficient utilization of assets to generate operating profits, reaching a peak of 17.75% in Q2 2023. This suggests effective operational management.
Return on Assets (ROA) has also demonstrated a positive trend, reflecting the company's ability to generate earnings from its total assets. The ROA improved gradually, reaching 12.31% in Q2 2023, showcasing effective asset utilization and financial performance.
The Return on Total Capital indicates the company's profitability considering both debt and equity financing. The ratio has consistently increased over time, peaking at 23.65% in Q1 2023, signaling efficient capital deployment and value creation for both debt and equity holders.
Moreover, the Return on Equity (ROE) for TopBuild Corp has been on an upward trajectory, reflecting improved profitability for shareholders. The ROE reached its highest point of 27.95% in Q1 2023, demonstrating the company's ability to generate substantial returns on shareholder equity.
Overall, the profitability ratios of TopBuild Corp highlight a sustained improvement in operational efficiency, asset utilization, and overall profitability, indicating a positive trend in the company's financial performance.