CDW Corp (CDW)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 21.92% | 21.76% | 19.73% | 17.14% | 17.38% |
| Operating profit margin | 7.86% | 7.86% | 7.31% | 6.82% | 3.96% |
| Pretax margin | 6.84% | 6.78% | 6.26% | 6.23% | 5.43% |
| Net profit margin | 5.13% | 5.17% | 4.69% | 4.75% | 4.27% |
CDW Corp's profitability ratios have shown a positive trend over the past five years. The gross profit margin has increased steadily from 17.38% in December 2020 to 21.92% in December 2024, indicating an improvement in the company's ability to generate profits from its sales after accounting for the cost of goods sold.
Similarly, the operating profit margin has also shown a consistent growth, rising from 3.96% in December 2020 to 7.86% in December 2024. This indicates that CDW Corp has been able to effectively manage its operating expenses and increase its profitability at the operating level.
The pretax margin, which measures the company's profitability before taxes, has also demonstrated an upward trajectory over the years, increasing from 5.43% in December 2020 to 6.84% in December 2024. This suggests that CDW Corp has been successful in controlling its pre-tax expenses and improving its overall financial performance.
Lastly, the net profit margin, which reflects the company's profitability after all expenses have been deducted, has shown a positive trend from 4.27% in December 2020 to 5.13% in December 2024. This indicates that CDW Corp has been able to efficiently manage its costs and generate higher profits for its shareholders.
Overall, the profitability ratios of CDW Corp highlight a consistent improvement in the company's financial performance over the past five years, with a steady increase in gross profit margin, operating profit margin, pretax margin, and net profit margin.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 11.25% | 12.65% | 13.21% | 10.75% | 7.83% |
| Return on assets (ROA) | 7.34% | 8.31% | 8.49% | 7.49% | 8.44% |
| Return on total capital | 70.13% | 82.30% | 107.72% | 205.64% | 89.68% |
| Return on equity (ROE) | 45.81% | 54.07% | 69.51% | 140.09% | 60.79% |
CDW Corp's profitability ratios have exhibited varying trends over the past five years.
- Operating return on assets (Operating ROA) has shown a general upward trend, increasing from 7.83% in 2020 to 13.21% in 2022 before slightly declining to 11.25% in 2024. This indicates the company's ability to generate operating income relative to its total assets has been improving over the period.
- Return on assets (ROA) has shown some fluctuations, with a peak of 8.49% in 2022, but generally hovering around 8% throughout the years. This ratio indicates the overall profitability of the company in generating earnings from its total assets.
- Return on total capital has displayed a significant increase from 89.68% in 2020 to 205.64% in 2021, followed by a decrease in subsequent years. This ratio reflects how efficiently the company is utilizing its total capital to generate profits.
- Return on equity (ROE) has also followed a similar pattern as the return on total capital, with a substantial increase in 2021 but declining in the following years. The ROE indicates the company's ability to generate profits from shareholders' equity.
Overall, while CDW Corp has demonstrated improvements in certain profitability metrics such as Operating ROA, the company has experienced fluctuations in other ratios like ROA and ROE. It is important for investors and stakeholders to closely monitor these ratios to assess the company's profitability and financial performance.