PC Connection Inc (CNXN)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 18.55% | 17.96% | 16.84% | 16.06% | 16.17% |
| Operating profit margin | 3.46% | 3.62% | 3.86% | 3.34% | 2.78% |
| Pretax margin | 4.19% | 3.97% | 3.89% | 3.34% | 2.83% |
| Net profit margin | 3.11% | 2.92% | 2.86% | 2.42% | 2.15% |
PC Connection Inc's profitability ratios have shown positive trends over the past five years.
- The Gross Profit Margin has increased steadily from 16.17% in 2020 to 18.55% in 2024. This indicates that the company has been able to improve its efficiency in generating profits from its sales.
- The Operating Profit Margin has also shown a consistent increase, starting at 2.78% in 2020 and reaching 3.46% in 2024. This suggests that the company has been able to control its operating expenses more effectively over the years.
- The Pretax Margin has followed a similar upward trend, rising from 2.83% in 2020 to 4.19% in 2024. This indicates that PC Connection Inc has been able to enhance its profitability before accounting for taxes.
- The Net Profit Margin has shown a gradual improvement, starting at 2.15% in 2020 and increasing to 3.11% in 2024. This signifies that the company has been able to increase its bottom line profitability after accounting for all expenses and taxes.
Overall, PC Connection Inc's profitability ratios have been on an upward trajectory, demonstrating improved efficiency in generating profits and managing expenses 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) | 7.47% | 8.68% | 10.96% | 8.91% | 7.10% |
| Return on assets (ROA) | 6.70% | 7.01% | 8.11% | 6.45% | 5.49% |
| Return on total capital | 10.65% | 12.27% | 15.73% | 14.14% | 11.52% |
| Return on equity (ROE) | 9.56% | 9.90% | 11.64% | 10.24% | 8.76% |
PC Connection Inc's profitability ratios show a generally positive trend over the past five years.
- Operating return on assets (Operating ROA) has increased from 7.10% in 2020 to 8.91% in 2021, further rising to 10.96% in 2022. However, it saw a slight decline to 8.68% in 2023 and further to 7.47% in 2024. This ratio measures how efficiently the company is generating operating profits from its assets.
- Return on assets (ROA) also exhibits a similar pattern, starting at 5.49% in 2020, increasing to 6.45% in 2021 and peaking at 8.11% in 2022. In 2023 and 2024, it decreased to 7.01% and 6.70%, respectively. ROA indicates the company's ability to generate profits from its total assets.
- Return on total capital demonstrates consistent growth, from 11.52% in 2020 to 14.14% in 2021 and reaching 15.73% in 2022. However, there was a decline to 12.27% in 2023 and further down to 10.65% in 2024. This ratio measures the return the company generates from all capital, including debt and equity.
- Return on equity (ROE) shows a positive trajectory, starting at 8.76% in 2020, increasing to 10.24% in 2021, peaking at 11.64% in 2022, and then decreasing to 9.90% in 2023 and 9.56% in 2024. ROE reflects how well the company is utilizing shareholders' equity to generate profits.
Overall, PC Connection Inc's profitability ratios demonstrate generally positive performance, with some fluctuations in recent years indicating the need for continued monitoring and strategic adjustments to maintain and improve profitability levels.