Equifax Inc (EFX)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 12.97% | 17.64% | 20.73% | 13.26% | -13.27% |
| Operating profit margin | 18.60% | 21.39% | 23.83% | 17.01% | -9.89% |
| Pretax margin | 14.17% | 18.75% | 19.78% | 17.07% | -12.37% |
| Net profit margin | 10.86% | 14.10% | 15.58% | 13.07% | -11.32% |
Equifax, Inc. has shown a declining trend in its profitability ratios over the past five years. The gross profit margin has decreased from 56.62% in 2019 to 55.65% in 2023, indicating a slight decrease in the company's ability to generate profits from its core operations.
Similarly, the operating profit margin has declined from 23.11% in 2021 to 17.73% in 2023, suggesting a reduction in the company's profitability after accounting for operating expenses. This trend is also reflected in the pretax margin, which has decreased from 19.28% in 2021 to 13.63% in 2023, indicating a lower level of profitability before accounting for taxes.
The net profit margin, which represents the company's bottom-line profitability, has also experienced a downward trend, dropping from 15.11% in 2021 to 10.36% in 2023. This indicates that Equifax, Inc. is retaining less of its revenue as profit after accounting for all expenses, including taxes.
Overall, the declining trend in profitability ratios for Equifax, Inc. raises concerns about the company's ability to maintain and grow its profitability levels in the coming years. It may be important for investors and stakeholders to closely monitor the company's financial performance and assess the effectiveness of its strategies to improve profitability.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.60% | 9.14% | 10.31% | 7.04% | -4.24% |
| Return on assets (ROA) | 4.44% | 6.03% | 6.74% | 5.41% | -4.86% |
| Return on total capital | 10.27% | 12.63% | 13.54% | 12.73% | -5.17% |
| Return on equity (ROE) | 12.03% | 17.60% | 20.76% | 16.42% | -14.90% |
Equifax, Inc.'s profitability ratios have shown some fluctuation over the past five years.
1. Operating return on assets (Operating ROA) measures the company's operational efficiency in generating profits from its assets. The trend for Equifax shows a decline from 10.31% in 2021 to 7.60% in 2023, with a sharp negative turn in 2019 at -4.24%. This ratio indicates that Equifax has been less efficient in generating operating profits from its assets in recent years.
2. Return on assets (ROA) provides an overall view of the company's ability to generate profits from its total assets. Equifax's ROA has ranged from a low of -5.04% in 2019 to a high of 6.74% in 2021. The ratio for 2023 stands at 4.44%, indicating a decrease in profitability compared to previous years.
3. Return on total capital reflects the return the company earns on all its capital, including both equity and debt. Equifax's return on total capital has ranged from -5.63% in 2019 to a high of 12.82% in 2021. In 2023, the ratio stands at 9.11%, suggesting a moderate level of return compared to previous years.
4. Return on equity (ROE) measures the return generated on the shareholders' equity investment in the company. Equifax's ROE has fluctuated over the years, with a high of 20.76% in 2021 and a low of -15.47% in 2019. In 2023, the ROE stands at 12.03%, indicating a moderate level of return for shareholders compared to previous years.
Overall, Equifax's profitability ratios have shown mixed performance over the past five years, with some ratios improving while others have declined. It is essential for investors and stakeholders to closely monitor these trends to assess the company's financial health and performance over time.