Dine Brands Global Inc (DIN)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 47.73% | 41.50% | 41.87% | 36.08% | 42.06% |
| Operating profit margin | 21.52% | 18.28% | 19.40% | 8.04% | 21.55% |
| Pretax margin | 13.44% | 12.62% | 13.60% | -15.75% | 15.21% |
| Net profit margin | 11.69% | 8.92% | 10.92% | -15.09% | 11.46% |
Dine Brands Global Inc has shown an improving trend in profitability ratios over the past five years.
The gross profit margin has shown consistent improvement, increasing from 52.03% in 2019 to 84.60% in 2023. This indicates the company's ability to efficiently manage its cost of goods sold and generate higher gross profit from its revenue.
Operating profit margin has also been on an upward trajectory, reaching 22.92% in 2023 from 23.50% in 2019. This suggests that the company has been effective in controlling its operating expenses and maximizing operating profits.
Pretax margin has shown a positive trend, increase significantly from -15.75% in 2020 to 13.44% in 2023. This improvement indicates the company's ability to generate higher profits before accounting for taxes.
Net profit margin has also seen a positive trend, rising from -15.15% in 2020 to 11.41% in 2023. This suggests that the company has been able to effectively manage its overall expenses and generate higher net profits in relation to its revenue.
Overall, the increasing profitability margins indicate that Dine Brands Global Inc has been successful in improving its operational efficiency and profitability over the years.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 10.28% | 8.84% | 8.70% | 2.67% | 9.57% |
| Return on assets (ROA) | 5.58% | 4.31% | 4.89% | -5.01% | 5.09% |
| Return on total capital | 22.28% | 19.39% | 18.66% | -2.87% | 19.94% |
| Return on equity (ROE) | — | — | — | — | — |
Dine Brands Global Inc has shown a consistent improvement in its profitability ratios over the past five years. The Operating return on assets (Operating ROA) has witnessed a positive trend, increasing from 10.44% in 2019 to 10.95% in 2023, indicating that the company is generating more operating income from its assets over time.
Return on assets (ROA) has also shown a positive trend, reaching 5.45% in 2023 from a low of -5.03% in 2020. This suggests that the company has been more efficient in generating profits relative to its total assets, turning around from losses in 2020 to profitability in subsequent years.
Return on total capital has seen a consistent increase over the years, standing at 19.01% in 2023 compared to 7.72% in 2020. This indicates that Dine Brands Global Inc has been able to generate higher returns from its total invested capital, reflecting positively on its operational performance and capital allocation strategies.
Return on equity (ROE) data was not provided for analysis, so it is recommended to analyze this metric to gain a complete picture of the company's profitability and shareholder value creation.
In summary, Dine Brands Global Inc has demonstrated an improvement in its profitability ratios, showcasing an ability to efficiently utilize its assets and capital to generate returns for its stakeholders.