CoreCivic Inc (CXW)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 85.95% | 85.91% | 84.87% | 82.38% | 86.05% |
| Operating profit margin | 1.67% | 2.38% | 5.79% | 8.54% | 14.22% |
| Pretax margin | 5.05% | 8.96% | 4.62% | 3.07% | 9.93% |
| Net profit margin | 3.56% | 6.63% | -2.79% | 2.84% | 9.54% |
CoreCivic Inc's profitability ratios show varying trends over the past five years. The gross profit margin has remained consistently high at 100%, indicating efficient cost management and pricing strategies.
However, the operating profit margin has fluctuated, with a slight decrease in 2023 compared to the previous year. This suggests that the company's operating expenses may have increased relative to its revenue, impacting profitability.
The pretax margin shows a mixed performance, with peaks and troughs over the years. The decrease in 2023 compared to 2022 indicates that the company's profitability before taxes has declined.
The net profit margin also demonstrates fluctuations, including a negative value in 2021. This negative net profit margin suggests that CoreCivic Inc experienced a loss in that year. Overall, the company has shown some volatility in profitability, which may warrant further investigation into its financial performance and efficiency.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 1.02% | 1.35% | 3.08% | 4.39% | 7.43% |
| Return on assets (ROA) | 2.18% | 3.77% | -1.48% | 1.46% | 4.98% |
| Return on total capital | 6.59% | 9.94% | 5.99% | 4.52% | 8.51% |
| Return on equity (ROE) | 4.57% | 8.54% | -3.78% | 3.90% | 13.72% |
Based on the provided data, CoreCivic Inc's profitability ratios have shown fluctuations over the past five years.
1. Operating Return on Assets (Operating ROA): This ratio indicates how efficiently the company is generating operating income relative to its total assets. CoreCivic's Operating ROA has been relatively stable, ranging from 4.17% in 2019 to 7.29% in 2021, with a slight increase to 5.50% in 2023. This suggests that the company is effectively utilizing its assets to generate operating income.
2. Return on Assets (ROA): ROA measures the company's ability to generate profit from its total assets. CoreCivic's ROA has been mixed, ranging from a negative 1.48% in 2021 to 4.98% in 2019. In 2023, the ROA decreased to 2.18%, indicating a lower profitability level compared to previous years.
3. Return on Total Capital: This ratio assesses how well the company is utilizing its total capital to generate returns for both debt and equity holders. CoreCivic's Return on Total Capital has shown a similar trend to Operating ROA, with increases from 4.72% in 2019 to 8.77% in 2021 before slightly declining to 6.62% in 2023.
4. Return on Equity (ROE): ROE measures the company's profitability from the shareholders' perspective. CoreCivic's ROE has been volatile, ranging from a negative 3.78% in 2021 to 13.72% in 2019. In 2023, the ROE decreased to 4.57%, indicating a decline in profitability for equity holders compared to the prior year.
Overall, while CoreCivic's Operating ROA and Return on Total Capital have shown some improvement over the years, the company's ROA and ROE have been less consistent, indicating fluctuations in profitability levels. It is important for investors to monitor these ratios to assess the company's ability to generate returns from its assets and capital.