Century Communities Inc (CCS)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 88.06% | 87.83% | 90.22% | 90.76% | 89.12% |
| Operating profit margin | 76.67% | 75.62% | 80.38% | 81.48% | 78.20% |
| Pretax margin | 10.01% | 9.50% | 15.02% | 15.21% | 8.55% |
| Net profit margin | 7.59% | 7.02% | 11.65% | 11.82% | 6.52% |
Century Communities Inc has shown a consistent improvement in its gross profit margin over the years, with an increase from 89.12% in 2020 to 90.76% in 2021, and then a slight decrease to 87.83% in 2023 before picking back up to 88.06% in 2024. The company has maintained a high level of gross profitability throughout this period.
In terms of operating profit margin, Century Communities Inc has generally shown a positive trend, starting at 78.20% in 2020 and steadily increasing to 81.48% in 2021. However, there was a slight dip in operating profit margin to 75.62% in 2023 before recovering to 76.67% in 2024. This indicates the company's ability to effectively control its operating expenses and generate operating profits.
The pretax margin of Century Communities Inc has exhibited some volatility, with a significant increase from 8.55% in 2020 to 15.21% in 2021, followed by a decrease to 9.50% in 2023 and a slight uptick to 10.01% in 2024. This reflects fluctuations in the company's ability to manage its pre-tax income relative to its revenue.
Lastly, the net profit margin of Century Communities Inc has shown variations over the years, starting at 6.52% in 2020 and peaking at 11.82% in 2021. However, there was a decline to 7.02% in 2023, followed by a slight increase to 7.59% in 2024. This indicates the company's ability to efficiently generate profit after accounting for all expenses, including taxes.
Overall, Century Communities Inc has demonstrated strong profitability ratios across its gross, operating, pre-tax, and net profit margins, showcasing its ability to effectively manage costs and generate profits over the years.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 74.40% | 67.45% | 95.98% | 98.25% | 86.89% |
| Return on assets (ROA) | 7.36% | 6.26% | 13.92% | 14.26% | 7.25% |
| Return on total capital | 19.80% | 17.13% | 34.32% | 39.69% | 26.32% |
| Return on equity (ROE) | 12.74% | 10.86% | 24.42% | 28.25% | 16.10% |
Century Communities Inc has shown a steady improvement in its profitability ratios over the years. The Operating return on assets (Operating ROA) increased from 86.89% in 2020 to 98.25% in 2021 before slightly declining to 95.98% in 2022. However, there was a more significant drop in 2023 to 67.45% followed by a slight recovery to 74.40% in 2024.
In terms of Return on assets (ROA), the company's performance improved significantly from 7.25% in 2020 to 14.26% in 2021 but then dipped to 6.26% in 2023, before recovering slightly to 7.36% in 2024. This indicates that while the company is generating some profit from its assets, there have been fluctuations in its efficiency in utilizing assets to generate earnings.
Return on total capital also saw positive growth, increasing from 26.32% in 2020 to 39.69% in 2021, before stabilizing at around 34% in 2022 and 2013, and then declining to 19.80% in 2024.
Return on equity (ROE) showed a similar trend, with a notable improvement from 16.10% in 2020 to 28.25% in 2021, and then a decline to 10.86% in 2023, followed by a slight recovery to 12.74% in 2024. This indicates that while shareholder wealth is being generated, the company's ability to generate profit from equity has fluctuated over the years.
Overall, Century Communities Inc has demonstrated varying profitability levels over the years, with improvements in certain ratios and fluctuations in others, which may warrant further analysis to understand the underlying factors driving these changes.