Six Flags Entertainment Corporation (FUN)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 62.93% | 34.51% | 90.96% | 91.60% | 84.58% |
| Operating profit margin | 11.46% | 19.27% | 20.83% | 11.08% | -253.30% |
| Pretax margin | 1.26% | 9.60% | 20.45% | -2.13% | -401.07% |
| Net profit margin | -8.53% | 6.93% | 16.93% | -3.63% | -325.10% |
Based on the provided data, Six Flags Entertainment Corporation's profitability ratios have shown significant fluctuations over the past five years.
1. Gross Profit Margin:
- The gross profit margin has generally been high, ranging from 84.58% to 91.60% in 2020 and 2021, but experienced a sharp decline to 34.51% in 2023, before recovering slightly to 62.93% in 2024. This indicates a varying ability to generate profit after deducting the cost of goods sold.
2. Operating Profit Margin:
- The operating profit margin was particularly concerning in 2020 with a negative value of -253.30%, suggesting operating losses. However, there was an improvement in 2021, 2022, and 2023, with margins ranging from 11.08% to 20.83%, before decreasing to 11.46% in 2024. This indicates the efficiency of the company in generating profits from its core operations.
3. Pretax Margin:
- The pretax margin reflects profitability before taxes. The company's performance was extremely poor in 2020 with a margin of -401.07%, but it gradually improved in the following years, reaching 20.45% in 2022. However, there was a slight decline to 1.26% in 2024, indicating fluctuations in the company's ability to generate profit before tax expenses.
4. Net Profit Margin:
- The net profit margin, which represents the company's overall profitability after all expenses have been deducted, was negative in 2020 and 2021, indicating losses. There was a significant improvement to 16.93% in 2022, but it dropped to 6.93% in 2023 and further declined to -8.53% in 2024, reflecting challenges in maintaining profitability.
In conclusion, while Six Flags Entertainment Corporation has shown improvements in certain profitability ratios over the years, the overall performance has been inconsistent, with fluctuations in margins indicating the company's varying ability to generate profits and control costs.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.40% | 15.18% | 16.93% | 6.41% | -17.07% |
| Return on assets (ROA) | -2.53% | 5.46% | 13.76% | -2.10% | -21.91% |
| Return on total capital | 0.00% | — | 117.11% | 1,780.72% | -17,677.49% |
| Return on equity (ROE) | -11.32% | — | 95.17% | -542.52% | -22,710.39% |
Six Flags Entertainment Corporation's profitability ratios have shown varying trends over the years.
- Operating return on assets (Operating ROA) improved significantly from -17.07% in December 31, 2020, to reach a high of 16.93% in December 31, 2022. However, it slightly decreased to 15.18% in December 31, 2023, before dropping further to 3.40% by December 31, 2024.
- Return on assets (ROA) was negative in December 31, 2020 and 2021 but turned positive in the following years. It reached its peak at 13.76% by December 31, 2022, before dropping to 5.46% in December 31, 2023, and then back to negative at -2.53% by December 31, 2024.
- Return on total capital was extremely negative at -17,677.49% in December 31, 2020, which then improved significantly to 1,780.72% in December 31, 2021, and further to 117.11% in December 31, 2022. It is noteworthy to mention that data for December 31, 2023, is indicated as "—", which may require further investigation. By December 31, 2024, the return on total capital was recorded at 0.00%.
- Return on equity (ROE) also displayed a negative trend, starting from -22,710.39% in December 31, 2020, and improving to -542.52% in December 31, 2021. The ROE turned positive at 95.17% in December 31, 2022. Similar to the return on total capital, data for December 31, 2023, is indicated as "—". By December 31, 2024, the ROE was negative at -11.32%.
Overall, Six Flags Entertainment Corporation's profitability ratios show fluctuations in performance, with improvements in certain years but also experiencing declines in others. Further analysis and comparison with industry benchmarks would be beneficial to gain a deeper understanding of the company's financial health and performance.