Expeditors International of Washington, Inc. (EXPD)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 12.73% | 13.39% | 12.72% | 13.11% | 12.13% |
| Operating profit margin | 9.82% | 10.11% | 10.69% | 11.56% | 9.81% |
| Pretax margin | 10.33% | 10.91% | 10.75% | 11.65% | 9.98% |
| Net profit margin | 7.64% | 8.10% | 7.95% | 8.57% | 7.26% |
Expeditors International of Washington, Inc.'s profitability ratios have shown some fluctuation over the past five years based on the provided data.
- The gross profit margin has fluctuated between 12.13% and 13.39%, with the highest point in 2023. This metric reflects the efficiency of the company in generating profits from its revenue after accounting for the cost of goods sold.
- The operating profit margin has ranged from 9.81% to 11.56%, showing an increase until 2021 and a slight decline thereafter. This ratio indicates the company's ability to control its operating expenses and generate profits from its core operations.
- The pretax margin has shown a similar trend, varying from 9.98% to 11.65%. This ratio represents the profitability of the company before accounting for taxes, reflecting its ability to manage its costs and generate earnings.
- The net profit margin, which considers all expenses including taxes, has hovered between 7.26% and 8.57%. The company has managed to maintain positive net profits relative to its revenue, with a slightly decreasing trend over the years.
Overall, Expeditors International of Washington, Inc. has demonstrated a relatively stable performance in terms of profitability, with some variability in its margins. It is essential for the company to continue monitoring and optimizing its operational efficiency and cost management to sustain and potentially improve 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) | 21.90% | 20.33% | 32.63% | 25.09% | 19.09% |
| Return on assets (ROA) | 17.04% | 16.28% | 24.28% | 18.60% | 14.13% |
| Return on total capital | 46.84% | 39.32% | 58.66% | 55.09% | 35.97% |
| Return on equity (ROE) | 36.44% | 31.50% | 43.65% | 40.51% | 26.17% |
Expeditors International of Washington, Inc. has demonstrated a consistent improvement in its profitability ratios over the years. In terms of Operating Return on Assets (Operating ROA), the company saw a significant increase from 19.09% in December 2020 to 32.63% in December 2022, indicating efficient operations leading to higher returns generated from its assets.
Similarly, the Return on Assets (ROA) also showed an upward trend, rising from 14.13% in December 2020 to 24.28% in December 2022. This ratio reflects the company's ability to generate profits relative to its total assets, with the improvement suggesting effective asset utilization and profitability.
Expeditors' Return on Total Capital increased from 35.97% in December 2020 to 58.66% in December 2022, showcasing the company's ability to generate returns for both its equity and debt holders. This ratio indicates the overall efficiency of the company in generating profits from its total invested capital.
Moreover, the Return on Equity (ROE) also saw a positive trajectory, climbing from 26.17% in December 2020 to 43.65% in December 2022. This metric reflects the company's ability to generate returns for its shareholders, signifying strong financial performance and effective management of shareholder investments.
Overall, Expeditors International of Washington, Inc. has shown consistent improvement in its profitability ratios, reflecting strong operational efficiency, effective asset utilization, and value creation for both shareholders and capital providers.