Expeditors International of Washington Inc (EXPD)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 13.64% | 12.78% | 13.26% | 11.65% | 12.18% |
| Operating profit margin | 10.13% | 10.70% | 11.56% | 9.32% | 9.39% |
| Pretax margin | 10.95% | 10.75% | 11.64% | 9.46% | 9.73% |
| Net profit margin | 8.11% | 7.96% | 8.57% | 6.90% | 7.23% |
Expeditors International Of Washington, Inc. has shown a fluctuating trend in its profitability ratios over the past five years.
The Gross Profit Margin, which indicates the percentage of revenue retained after accounting for the cost of goods sold, has experienced significant variability, ranging from 26.33% in 2022 to 34.90% in 2023. This improvement in 2023 indicates that the company has become more efficient in managing its production costs.
The Operating Profit Margin, a measure of a company's operating efficiency and profitability, has also varied, with a peak of 11.56% in 2021 and a low of 9.30% in 2020. The 2023 ratio of 10.11% suggests that the company is generating a reasonable profit from its core operations.
The Pretax Margin, which reflects the proportion of earnings before taxes out of total revenue, reached its highest point in 2021 at 11.65% and its lowest in 2020 at 9.46%. The upward trend in 2023 to 10.91% indicates improved profitability before taxes for the company.
Lastly, the Net Profit Margin, which indicates the percentage of revenue that translates into net income, has shown some fluctuation, with 8.57% in 2021 as the highest and 6.88% in 2020 as the lowest. The 2023 ratio of 8.10% reflects the company's ability to effectively control costs and generate profits.
Overall, the company has demonstrated improvements in its profitability margins in 2023, reflecting better cost management and operational 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) | 20.78% | 32.63% | 25.09% | 19.09% | 20.77% |
| Return on assets (ROA) | 16.64% | 24.28% | 18.60% | 14.13% | 15.99% |
| Return on total capital | 42.71% | 59.68% | 54.99% | 35.90% | 34.93% |
| Return on equity (ROE) | 31.50% | 43.65% | 40.51% | 26.17% | 26.90% |
Expeditors International Of Washington, Inc. has demonstrated consistently strong profitability over the past five years as shown by its key profitability ratios.
The Operating return on assets (Operating ROA) has ranged from 19.09% to 32.63% with an average of approximately 24.67% during this period. This ratio indicates how efficiently the company is generating operating profit from its assets. The higher the percentage, the more effective the company is at utilizing its assets to generate operating income.
Return on assets (ROA) has also exhibited a positive trend, ranging from 14.13% to 24.28%, with an average of around 17.73%. ROA measures the company's overall profitability by evaluating how well it is utilizing its assets to generate profit. A higher ROA indicates better efficiency in generating earnings from its assets.
Return on total capital has shown a consistent increase over the years, reaching a high of 58.66% in 2022. This ratio demonstrates the company's ability to generate profitability from the total capital employed in the business. The upward trend indicates that the company has been efficient in utilizing both shareholders' equity and debt to generate returns.
Return on equity (ROE) has also displayed a positive trajectory, ranging from 26.17% to 43.65%, with an average of approximately 33.15%. ROE measures the return generated on shareholders' equity investment in the company. A higher ROE signifies that the company is effectively using shareholders' equity to generate profits.
Overall, Expeditors International Of Washington, Inc. has shown strong profitability performance through its efficient utilization of assets, capital, and equity over the past five years. These ratios reflect the company's ability to generate profits while effectively managing its resources, which is essential for sustainable growth and value creation for its shareholders.