CDW Corp (CDW)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 22.00% | 19.93% | 17.26% | 17.53% | 17.01% |
| Operating profit margin | 7.95% | 7.38% | 6.87% | 6.44% | 6.34% |
| Pretax margin | 6.86% | 6.33% | 6.28% | 5.47% | 5.31% |
| Net profit margin | 5.22% | 4.74% | 4.78% | 4.31% | 4.12% |
CDW Corp has shown a positive trend in its profitability ratios over the past five years. The gross profit margin has steadily increased from 16.86% in 2019 to 21.76% in 2023, indicating improvement in the company's ability to generate profit from its sales after accounting for the cost of goods sold.
Similarly, the operating profit margin has also seen consistent growth, with an upward trend from 6.29% in 2019 to 7.86% in 2023. This indicates that CDW Corp has been effectively managing its operating expenses in relation to its revenue.
The pretax margin, a measure of the company's profitability before accounting for taxes, has also improved over the years, reaching 6.78% in 2023, up from 5.27% in 2019. This suggests that the company has been able to generate higher earnings before taxes relative to its total revenue.
Lastly, the net profit margin, which reflects the company's profitability after all expenses, including taxes, has shown a positive trend as well. From 4.09% in 2019, the net profit margin has increased to 5.17% in 2023, demonstrating CDW Corp's ability to convert a higher percentage of its revenue into net income.
Overall, the profitability ratios of CDW Corp indicate an improving financial performance over the years, with increasing margins at various levels of the income statement.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 12.65% | 13.21% | 10.75% | 12.62% | 14.17% |
| Return on assets (ROA) | 8.31% | 8.49% | 7.49% | 8.44% | 9.21% |
| Return on total capital | 23.76% | 23.23% | 19.02% | 22.88% | 26.71% |
| Return on equity (ROE) | 54.07% | 69.51% | 140.09% | 60.79% | 76.73% |
CDW Corp's profitability ratios indicate a fluctuating performance over the years.
- Operating return on assets (Operating ROA) has ranged from 10.75% in 2021 to 13.21% in 2022, with 2023 showing a modest decline to 12.65%. This ratio reflects how efficiently the company generates profits from its operational assets.
- Return on assets (ROA) has fluctuated from 7.49% in 2021 to 8.49% in 2022, but saw a slight decrease to 8.31% in 2023. ROA measures the overall profitability of the company relative to its total assets.
- Return on total capital has shown variability, ranging from 18.76% in 2021 to 23.06% in 2022. In 2023, it decreased to 21.87%. This ratio indicates how well the company generates returns from both equity and debt capital employed.
- Return on equity (ROE) has been the most volatile, with a significant decrease from 140.09% in 2021 to 54.07% in 2023. ROE reflects the return generated for shareholders' equity invested in the company.
Overall, while CDW Corp has demonstrated strong profitability in some years, the fluctuations in these ratios suggest potential challenges in consistently maintaining high levels of profitability over the years.