Crocs Inc (CROX)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 58.87% | 58.17% | 54.38% | 61.97% | 54.51% |
| Operating profit margin | 24.96% | 27.29% | 24.87% | 29.81% | 15.56% |
| Pretax margin | 22.24% | 23.06% | 21.00% | 28.97% | 15.05% |
| Net profit margin | 23.20% | 20.86% | 15.79% | 31.67% | 22.74% |
Crocs Inc's gross profit margin has shown fluctuation over the past five years, starting at 54.51% in 2020, peaking at 61.97% in 2021, and then gradually declining to 58.87% in 2024. This indicates that the company has been managing its cost of goods sold effectively, but experienced some pressure on profitability in the last year.
In terms of operating profit margin, Crocs Inc has demonstrated significant improvement from 15.56% in 2020 to 29.81% in 2021, before moderating to 24.96% in 2024. This suggests that the company has been effectively controlling its operating expenses to enhance its operational efficiency and profitability.
Meanwhile, the pretax margin has also shown a positive trend, increasing from 15.05% in 2020 to 28.97% in 2021, before stabilizing around 22% in the following years. This indicates that Crocs Inc has been managing its income and expenses efficiently before tax obligations.
Lastly, the net profit margin, which reflects the company's bottom-line profitability, has shown some fluctuations over the period, with a peak of 31.67% in 2021 and a low of 15.79% in 2022. However, it recovered to 23.20% in 2024. This suggests that while there have been some fluctuations in profitability, overall, Crocs Inc has been able to generate decent profits relative to its revenue.
In conclusion, Crocs Inc has shown a mix of profitability ratios over the past five years, with varying trends across gross profit margin, operating profit margin, pretax margin, and net profit margin. The company's ability to manage costs and expenses will be crucial for sustaining and improving its profitability in the future.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 21.24% | 22.33% | 18.90% | 44.21% | 19.14% |
| Return on assets (ROA) | 19.74% | 17.07% | 12.00% | 46.97% | 27.97% |
| Return on total capital | 32.08% | 33.53% | 27.43% | 87.27% | 45.41% |
| Return on equity (ROE) | 51.75% | 54.51% | 66.04% | 5,153.34% | 107.65% |
Crocs Inc's profitability ratios exhibit fluctuating trends over the five-year period from 2020 to 2024.
1. Operating Return on Assets (Operating ROA):
- Operating ROA shows the company's ability to generate profit from its operational assets. The ratio ranged from a high of 44.21% in 2021 to a low of 18.90% in 2022, indicating a significant improvement in profitability in 2021 followed by a slight decline in subsequent years.
2. Return on Assets (ROA):
- ROA measures the overall efficiency of the company in generating profits from its total assets. Crocs Inc's ROA ranged from 12.00% in 2022 to 46.97% in 2021, with the company experiencing a significant dip in profitability in 2022 before recovering in the following years.
3. Return on Total Capital:
- This ratio indicates how well the company is utilizing its total capital to generate a return. Crocs Inc's return on total capital ranged from 27.43% in 2022 to 87.27% in 2021, showing a similar trend to the ROA ratios with a peak in 2021 and a subsequent decline in profitability.
4. Return on Equity (ROE):
- ROE reflects the company's ability to generate a return on the shareholders' equity. Crocs Inc's ROE ranged from 66.04% in 2022 to a staggering 5,153.34% in 2021, which may be due to specific events or adjustments in the financial statements in 2021.
Overall, Crocs Inc's profitability ratios demonstrate variability in performance, with significant improvements in 2021 followed by fluctuations in subsequent years. The company should continue to focus on efficient utilization of assets and capital to sustain and improve its profitability in the long run.