Cable One Inc (CABO)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 73.61% | 73.72% | 72.40% | 71.64% | 68.41% |
| Operating profit margin | 27.98% | 31.40% | 31.59% | 28.43% | 27.87% |
| Pretax margin | 15.46% | 24.52% | 22.00% | 20.99% | 28.62% |
| Net profit margin | 0.92% | 15.94% | 13.72% | 18.17% | 22.97% |
Cable One Inc's gross profit margin has shown a consistent increase over the years, starting at 68.41% in 2020 and reaching 73.61% by the end of 2024. This indicates the company's ability to efficiently control its production costs and generate profits from its core operations.
Operating profit margin, on the other hand, has experienced some fluctuations during the period under review. It increased from 27.87% in 2020 to a peak of 31.59% in 2022 before slightly dropping to 27.98% in 2024. This shows that while the company managed to improve its operational efficiency, there were some challenges in maintaining profitability from its day-to-day business activities.
Pretax margin reflects the company's ability to generate profits before accounting for taxes. Cable One Inc's pretax margin fluctuated over the years, with a notable drop from 28.62% in 2020 to 15.46% in 2024. This suggests that the company faced challenges in controlling its tax expenses or experienced a decline in pre-tax profitability over the period.
Net profit margin, which measures the company's overall profitability after all expenses including taxes, showed a declining trend for Cable One Inc. Starting at 22.97% in 2020, the net profit margin dropped to 0.92% by the end of 2024. This indicates a significant decrease in the company's bottom-line profitability over the years, highlighting potential issues with cost management or revenue generation.
Overall, while Cable One Inc demonstrated improvement in its gross profit margin and operating profit margin, there were challenges in maintaining pretax and net profit margins, suggesting the need for closer examination of cost structures and revenue streams to sustain profitability in the future.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.77% | 7.70% | 7.80% | 6.57% | 8.23% |
| Return on assets (ROA) | 0.22% | 3.91% | 3.39% | 4.20% | 6.78% |
| Return on total capital | 5.91% | 29.62% | 30.58% | 26.50% | 26.06% |
| Return on equity (ROE) | 0.81% | 14.28% | 13.32% | 16.27% | 20.36% |
Cable One Inc's profitability ratios exhibit a general downward trend from 2020 to 2024.
- Operating return on assets (Operating ROA) declined from 8.23% in 2020 to 6.77% in 2024, indicating a decrease in the company's ability to generate operating profits from its assets over the period.
- Return on assets (ROA) also saw a significant drop from 6.78% in 2020 to 0.22% in 2024, suggesting a substantial decrease in overall profitability relative to the total assets employed.
- Return on total capital decreased from 26.06% in 2020 to 5.91% in 2024, demonstrating a decline in the company's ability to generate returns for both debt and equity providers.
- Return on equity (ROE) experienced a notable decrease from 20.36% in 2020 to 0.81% in 2024, indicating a significant reduction in returns generated for the company's equity shareholders.
The declining trend in these profitability ratios may raise concerns about Cable One Inc's operational efficiency and overall profitability performance over the years. Further analysis of the company's financials and operational strategies may be necessary to address these challenges and improve profitability in the future.