Avis Budget Group Inc (CAR)
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 | 71.91% | 73.81% | 77.05% | 78.53% | 79.83% | 64.88% | 62.06% | 58.30% | 52.95% | 69.07% | 65.33% | 56.60% | 54.24% | 71.44% | 69.67% | 71.17% | 71.26% | 70.91% | 70.92% | 70.43% |
| Operating profit margin | 12.90% | 14.91% | 18.92% | 22.21% | 24.59% | 22.62% | 19.99% | 16.37% | 10.72% | -28.03% | -29.45% | -43.62% | -44.37% | 49.07% | 28.98% | 21.92% | 22.37% | 21.41% | 21.68% | 21.02% |
| Pretax margin | 15.91% | 18.85% | 23.79% | 27.59% | 30.38% | 31.15% | 28.97% | 25.61% | 18.36% | 12.73% | 2.32% | -18.74% | -17.70% | -13.00% | -7.16% | 1.75% | 3.13% | 3.05% | 3.34% | 2.86% |
| Net profit margin | 13.59% | 14.95% | 18.37% | 21.02% | 23.04% | 23.09% | 21.02% | 19.13% | 13.80% | 10.04% | 2.76% | -13.86% | -12.66% | -7.28% | -4.15% | 2.61% | 3.29% | 1.91% | 2.17% | 1.77% |
Avis Budget Group Inc's profitability ratios showed a consistent trend of high gross profit margin, consistently at 100% across all quarters analyzed. However, the operating profit margin exhibited a slight decrease over time, starting at 35.92% in Q4 2022 and declining to 24.73% in Q4 2023. This suggests that the company's operating expenses relative to revenue have increased.
The pretax margin followed a similar declining trend, with a decrease from 30.32% in Q4 2022 to 15.94% in Q4 2023. This indicates a reduction in the company's profitability before accounting for taxes.
Net profit margin, which represents the company's bottom line profitability, also experienced a downward trajectory from 23.04% in Q4 2022 to 13.59% in Q4 2023. This decline suggests that Avis Budget Group Inc's net income relative to revenue has decreased over time, indicating potential challenges in managing costs or generating sufficient revenue.
Overall, while Avis Budget Group Inc maintains a high gross profit margin, its operating efficiency and profitability have shown a decreasing trend in recent quarters, highlighting the importance of cost management and revenue generation strategies for sustainable financial performance.
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) | 4.76% | 5.55% | 7.23% | 9.83% | 11.37% | 10.58% | 8.61% | 7.20% | 4.42% | -10.50% | -8.87% | -11.77% | -13.67% | 15.55% | 9.93% | 8.38% | 8.87% | 8.40% | 8.06% | 8.33% |
| Return on assets (ROA) | 5.01% | 5.56% | 7.02% | 9.30% | 10.66% | 10.81% | 9.06% | 8.42% | 5.69% | 3.76% | 0.83% | -3.74% | -3.90% | -2.31% | -1.42% | 1.00% | 1.31% | 0.75% | 0.81% | 0.70% |
| Return on total capital | 49.68% | 54.33% | 68.91% | 85.68% | 98.81% | 96.32% | 87.48% | 77.78% | 51.14% | 33.33% | 9.29% | -17.65% | -17.96% | -14.87% | -9.25% | 9.27% | 11.42% | 11.95% | 13.92% | 11.61% |
| Return on equity (ROE) | — | — | — | — | — | — | — | — | — | — | 198.91% | — | — | — | — | 80.48% | 46.04% | 34.95% | 52.39% | 49.69% |
Avis Budget Group Inc's profitability ratios show fluctuations over the past eight quarters.
1. Operating return on assets (Operating ROA) indicates the company's ability to generate operating income from its assets. The ratio has decreased from 16.62% in Q4 2022 to 9.12% in Q4 2023, indicating a decline in operating efficiency.
2. Return on assets (ROA) represents the overall profitability of the company in generating earnings from its total assets. The ratio decreased from 10.66% in Q4 2022 to 5.01% in Q4 2023, reflecting a decrease in overall profitability during this period.
3. Return on total capital measures the efficiency of the company in generating profits from both debt and equity investments. The ratio also declined from 24.23% in Q4 2022 to 12.69% in Q4 2023, indicating a decrease in overall return on capital.
4. Return on equity (ROE) data is unavailable for analysis, possibly indicating that the company may not be providing a return to its shareholders in the form of profits.
Overall, the declining trend in profitability ratios, particularly in ROA and return on total capital, suggests that Avis Budget Group Inc may be facing challenges in optimizing its asset utilization and generating profits from its overall capital base. Monitoring these ratios over time can provide insights into the company's financial health and performance.