Avis Budget Group Inc (CAR)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 48.99% | 39.69% | 89.74% | 83.79% | 68.79% |
| Operating profit margin | 37.52% | 26.57% | 32.62% | 22.88% | -9.79% |
| Pretax margin | -22.28% | 15.94% | 30.32% | 18.34% | -17.70% |
| Net profit margin | -15.45% | 13.59% | 23.04% | 13.80% | -12.66% |
Avis Budget Group Inc's profitability ratios exhibit significant fluctuations over the years. The gross profit margin increased from 68.79% in 2020 to 89.74% in 2022, indicating improving cost management and efficiency in generating revenue from sales. However, there was a sharp decline to 39.69% in 2023 and a slight recovery to 48.99% in 2024, which may suggest challenges in maintaining profitability.
The operating profit margin showed a noteworthy turnaround from -9.79% in 2020 to 32.62% in 2022, reflecting enhanced operational efficiency and higher profitability. The pretax margin also demonstrated improvement, reaching 30.32% in 2022 from -17.70% in 2020. However, a decline to 15.94% in 2023 and a negative margin of -22.28% in 2024 indicate possible issues affecting the company's pre-tax profitability.
Meanwhile, the net profit margin increased from -12.66% in 2020 to 23.04% in 2022, showing a strong recovery and profitability in generating net income. Nonetheless, there was a drop to 13.59% in 2023 and a negative margin of -15.45% in 2024, indicating challenges in sustaining bottom-line profitability.
Overall, while Avis Budget Group Inc exhibited improvements in profitability ratios in certain years, the fluctuations suggest potential volatility and areas that may require attention to ensure consistent 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) | 45.75% | 9.80% | 15.09% | 9.43% | -3.02% |
| Return on assets (ROA) | -18.84% | 5.01% | 10.66% | 5.69% | -3.90% |
| Return on total capital | — | — | — | — | — |
| Return on equity (ROE) | — | — | — | — | — |
Avis Budget Group Inc's profitability ratios show varying performance over the years.
1. Operating Return on Assets (Operating ROA):
- The Operating ROA improved from -3.02% in 2020 to 15.09% in 2022, indicating better operational efficiency in generating profits from its assets.
- In 2023, the Operating ROA decreased to 9.80%, which is still positive, suggesting continued profitability but at a slightly lower level.
- Notably, in 2024, the Operating ROA surged significantly to 45.75%, indicating a substantial improvement in utilizing assets to generate operating profits.
2. Return on Assets (ROA):
- The ROA was negative in 2020 at -3.90%, meaning the company had a net loss relative to its assets during that period.
- The ROA turned positive in the following years, with the highest value at 10.66% in 2022, showcasing an increase in profitability relative to total assets.
- However, the ROA dipped in 2024 to -18.84%, indicating a significant decline in profitability compared to the previous year.
3. Return on Total Capital and Return on Equity (ROE):
- Data for Return on Total Capital and ROE are not available, suggesting that the company may not have reported these ratios for the given years.
In summary, Avis Budget Group Inc has shown fluctuations in profitability ratios over the years, with improvements in operational efficiency and profitability but also experiencing periods of decreased profitability. The company should continue to monitor and assess these ratios to ensure sustainable and consistent financial performance.