Celsius Holdings Inc (CELH)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 48.83% | 48.04% | 41.44% | 40.78% | 46.64% |
| Operating profit margin | 11.18% | 20.21% | -24.14% | -1.30% | 6.05% |
| Pretax margin | 14.00% | 22.14% | -23.36% | -1.29% | 6.61% |
| Net profit margin | 10.41% | 17.21% | -28.65% | 1.25% | 6.52% |
Celsius Holdings Inc's profitability ratios have shown some fluctuations over the years.
- Gross profit margin, which measures the percentage of revenue that exceeds the cost of goods sold, decreased from 46.64% in 2020 to 40.78% in 2021 and then slightly increased to 41.44% in 2022, followed by a notable improvement to 48.04% in 2023 and 48.83% in 2024. This trend indicates that the company has been able to increase its profitability at the gross profit level in the most recent years.
- Operating profit margin, representing the percentage of revenue that remains after deducting operating expenses, was 6.05% in 2020 but turned negative to -1.30% in 2021 and further declined to -24.14% in 2022. However, there was a significant recovery in 2023 to 20.21% followed by 11.18% in 2024. The company's operating profitability has shown improvement, although there were some challenges in 2021 and 2022.
- Pretax margin, reflecting the percentage of revenue that translates to pre-tax income, decreased from 6.61% in 2020 to -1.29% in 2021 and -23.36% in 2022. Subsequently, there was a substantial increase to 22.14% in 2023, followed by 14.00% in 2024. This indicates a comeback in the company's ability to generate pre-tax profits in the more recent years.
- Net profit margin, which shows the percentage of revenue that translates to net income, was 6.52% in 2020, then decreased to 1.25% in 2021 and further dropped to -28.65% in 2022. However, there was a notable recovery to 17.21% in 2023 and 10.41% in 2024. The company has managed to improve its profitability at the net income level after facing challenges in 2021 and 2022.
In conclusion, while there were some ups and downs in profitability ratios, Celsius Holdings Inc demonstrated the ability to recover and enhance its profitability in the most recent 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) | 8.81% | 17.34% | -12.91% | -1.30% | 6.03% |
| Return on assets (ROA) | 8.21% | 14.76% | -15.32% | 1.25% | 6.49% |
| Return on total capital | 38.94% | 100.88% | -393.61% | -1.88% | 7.58% |
| Return on equity (ROE) | 36.27% | 85.90% | -467.14% | 1.81% | 8.17% |
Celsius Holdings Inc's profitability ratios show mixed performance over the past five years.
1. Operating return on assets (Operating ROA) indicates the company's operating efficiency in generating profits from its assets. The ratio fluctuated significantly, starting at 6.03% in 2020, dropping to negative figures in 2021 and 2022, and subsequently recovering to 17.34% in 2023 and 8.81% in 2024.
2. Return on assets (ROA) showcases the overall profitability of the company in relation to its total assets. The ratio also experienced fluctuations, ranging from 6.49% in 2020 to -15.32% in 2022, with a rebound to 14.76% in 2023 and 8.21% in 2024.
3. Return on total capital reflects the returns generated on the total invested capital, including debt and equity. This ratio demonstrated a similar trend of volatility, with a notable negative performance in 2022 (-393.61%) and a significant rebound in 2023 (100.88%) and 2024 (38.94%).
4. Return on equity (ROE) measures the profitability for the shareholders. The ROE mirrored the fluctuations seen in other profitability ratios, with a positive start in 2020 (8.17%), followed by negative figures in 2021 and 2022, and subsequent recovery to 85.90% in 2023 and 36.27% in 2024.
In conclusion, Celsius Holdings Inc's profitability ratios have shown variability over the years, reflecting the company's ability to generate returns for its assets, total capital, and equity, with notable improvements in certain ratios in recent years. Further analysis of the underlying factors driving these fluctuations would be necessary to assess the sustainability and strategic implications of the company's profitability performance.