Columbia Sportswear Company (COLM)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 49.30% | 49.08% | 51.27% | 48.93% | 49.82% |
| Operating profit margin | 8.84% | 11.28% | 14.33% | 5.48% | 12.98% |
| Pretax margin | 9.30% | 11.40% | 14.36% | 5.58% | 13.33% |
| Net profit margin | 7.16% | 8.93% | 11.26% | 4.32% | 10.86% |
Columbia Sportswear Co.'s profitability ratios show fluctuations over the past five years. The gross profit margin has varied between 48.93% and 51.58%, with a slight decline in the most recent year to 49.61%. This indicates the company's ability to generate revenue after accounting for the cost of goods sold.
The operating profit margin has also experienced fluctuations, ranging from 4.99% to 13.82%, with a notable decrease to 8.99% in the latest year. This metric shows the company's efficiency in managing its operating expenses to generate profits.
Similarly, the pretax margin has fluctuated between 5.58% and 14.44%, with a decrease to 9.35% in the most recent year. This ratio reflects the company's profitability before accounting for taxes, indicating its ability to generate income from its core operations.
The net profit margin has shown a similar trend, ranging from 4.32% to 11.33% over the five-year period, with a decline to 7.21% in the latest year. This metric represents the company's profitability after all expenses, including taxes and interest, have been deducted, reflecting its overall bottom-line performance.
Overall, while Columbia Sportswear Co. has experienced fluctuations in its profitability ratios over the past five years, it is essential to analyze the underlying factors contributing to these changes to assess the company's financial health accurately.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 10.56% | 12.88% | 14.69% | 4.83% | 13.47% |
| Return on assets (ROA) | 8.55% | 10.21% | 11.55% | 3.81% | 11.27% |
| Return on total capital | 16.01% | 20.31% | 22.65% | 7.48% | 21.36% |
| Return on equity (ROE) | 12.97% | 16.09% | 17.80% | 5.89% | 17.87% |
Columbia Sportswear Co.'s profitability ratios indicate fluctuations over the years.
1. Operating return on assets (Operating ROA) has shown variability, with a peak in 2021 at 14.09% before decreasing to 10.67% in 2023. This ratio reflects the company's ability to generate operating income from its assets.
2. Return on assets (ROA) has also displayed fluctuations, reaching a high of 11.55% in 2021 and dropping to 8.55% in 2023. ROA measures the overall effectiveness of management in utilizing assets to generate profits.
3. Return on total capital has exhibited volatility, with a significant increase in 2022 to 22.15% followed by a slight dip to 17.30% in 2023. This ratio evaluates the company's efficiency in generating profits from both debt and equity capital.
4. Return on equity (ROE) has demonstrated variations, peaking at 17.80% in 2021 and declining to 12.97% in 2023. ROE assesses the return to equity shareholders and reflects the company's profitability relative to its equity base.
Overall, the trends in these profitability ratios suggest that Columbia Sportswear Co. has experienced some challenges in maintaining consistent levels of profitability over the past five years. It is essential for the company to focus on optimizing asset utilization, controlling costs, and efficiently managing its capital structure to enhance overall profitability in the future.