Deluxe Corporation (DLX)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 53.09% | 53.04% | 53.88% | 56.27% | 59.19% |
| Operating profit margin | 9.06% | 7.33% | 7.57% | 10.09% | 12.71% |
| Pretax margin | 3.61% | 1.82% | 3.77% | 4.64% | 1.71% |
| Net profit margin | 2.49% | 1.19% | 2.92% | 3.10% | 0.49% |
The profitability ratios of Deluxe Corporation have exhibited varying trends over the five-year period from 2020 to 2024.
- Gross Profit Margin: The gross profit margin declined from 59.19% in 2020 to 53.09% in 2024. This indicates a decreasing trend in the percentage of revenue retained after accounting for the cost of goods sold.
- Operating Profit Margin: The operating profit margin also showed a downward trajectory, decreasing from 12.71% in 2020 to 9.06% in 2024. This suggests a decline in the efficiency of the company's core operations in generating profits.
- Pretax Margin: The pretax margin fluctuated over the period, with a notable increase from 2019 to 2021, followed by a decline. This ratio reflects the company's profitability before taxes and indicates the portion of revenue remaining after operating expenses are deducted.
- Net Profit Margin: The net profit margin experienced fluctuations, reaching its peak at 3.10% in 2021 before decreasing to 2.49% in 2024. This ratio signifies the percentage of revenue that translates into net profit after all expenses, including taxes, have been deducted.
In conclusion, the profitability ratios of Deluxe Corporation highlight a mixed performance in maintaining profit margins over the five-year period, emphasizing the importance of monitoring and analyzing these metrics to assess the company's financial health and performance.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.79% | 5.22% | 5.51% | 6.64% | 12.14% |
| Return on assets (ROA) | 1.87% | 0.85% | 2.13% | 2.04% | 0.47% |
| Return on total capital | 32.18% | 27.92% | 35.40% | 38.25% | 9.06% |
| Return on equity (ROE) | 8.50% | 4.32% | 10.82% | 10.90% | 1.63% |
Deluxe Corporation's profitability metrics have shown some fluctuations over the past five years.
- Operating Return on Assets (Operating ROA) has decreased from 12.14% in 2020 to 5.22% in 2023 but slightly increased to 6.79% in 2024. This may indicate a decline in the company's efficiency in generating profits from its operating assets, followed by a modest improvement in the most recent year.
- Return on Assets (ROA) saw a notable increase from 0.47% in 2020 to 2.13% in 2022 before decreasing to 1.87% in 2024. The fluctuation in ROA suggests varying levels of profitability relative to the total assets employed by the company.
- Return on Total Capital has been relatively high, with a significant increase from 9.06% in 2020 to 38.25% in 2021 before gradually declining to 32.18% in 2024. This ratio indicates the overall profitability of the company's total invested capital, including both debt and equity.
- Return on Equity (ROE) showcases a mix of fluctuations, with an increase from 1.63% in 2020 to 10.90% in 2021, followed by a decrease to 8.50% in 2024. The variability in ROE reflects how effectively the company is utilizing shareholder equity to generate profits for them.
In summary, while some profitability ratios like ROA and ROE have shown fluctuations, Deluxe Corporation has maintained a relatively high Return on Total Capital throughout the period, indicating efficient use of both debt and equity capital to generate profits. It would be important to further investigate the factors contributing to the changes in these ratios to better understand the company's financial performance and outlook.