Forward Air Corporation (FWRD)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 63.36% | 71.13% | 69.65% | 25.86% | 26.59% |
| Operating profit margin | 6.60% | 12.63% | 9.64% | 5.82% | 9.25% |
| Pretax margin | 13.55% | 13.31% | 8.76% | 3.18% | 9.42% |
| Net profit margin | 12.52% | 9.86% | 6.41% | 1.87% | 7.17% |
Based on the profitability ratios of Forward Air Corporation over the past five years, we can observe the following trends:
1. Gross Profit Margin: The gross profit margin has been relatively stable, ranging from 63.36% in 2023 to 26.59% in 2019. This indicates that the company has been effectively managing its production costs and maintaining a healthy margin on its goods or services sold.
2. Operating Profit Margin: The operating profit margin shows some fluctuation, with a peak of 12.63% in 2022 and a low of 5.82% in 2020. This metric reflects the company's efficiency in controlling both production and operating expenses to generate profits from its core business activities.
3. Pretax Margin: The pretax margin has shown improvement over the years, with a significant increase from 3.18% in 2020 to 13.55% in 2023. This signals that Forward Air Corporation has been able to manage its operating expenses and interest payments effectively, leading to higher profitability before taxes.
4. Net Profit Margin: The net profit margin has also demonstrated an upward trend, reaching 12.52% in 2023 compared to 1.87% in 2020. This indicates that the company has been successful in controlling its tax obligations and other non-operating costs to generate stronger bottom-line profits relative to its revenue.
Overall, Forward Air Corporation has shown positive trends in its profitability ratios, suggesting effective cost management and improved operational efficiency over the years. These metrics reflect the company's ability to generate profits at different stages of its income statement, showcasing a solid performance in terms of overall 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) | 2.96% | 20.49% | 14.25% | 7.06% | 11.35% |
| Return on assets (ROA) | 5.62% | 15.99% | 9.47% | 2.27% | 8.79% |
| Return on total capital | 27.84% | 32.68% | 21.27% | 6.80% | 18.18% |
| Return on equity (ROE) | 21.90% | 27.32% | 17.83% | 4.34% | 15.09% |
Over the past five years, Forward Air Corporation's profitability ratios have shown fluctuating trends.
1. Operating return on assets (Operating ROA) has varied significantly, with a notable decline from 20.49% in 2022 to 2.96% in 2023. This indicates that the company's operating income generated from its assets decreased substantially in 2023 compared to the previous years.
2. Return on assets (ROA) has also had fluctuations, reaching a peak of 15.99% in 2022 and dropping to 5.62% in 2023. Despite the variability, the company's profitability in relation to its total assets improved over the period compared to 2019.
3. Return on total capital has shown a notable increase from 6.80% in 2020 to 27.84% in 2023. This suggests that the company's ability to generate profit from its total invested capital has significantly improved.
4. Return on equity (ROE) exhibited fluctuations, with a significant increase in 2023 to 21.90% compared to 15.09% in 2019. This indicates an improvement in the company's ability to generate profit from shareholders' equity.
In conclusion, while Forward Air Corporation's profitability ratios have shown variations over the years, there has been an overall improvement in profitability with an increase in return on equity and return on total capital. However, the decline in operating return on assets and return on assets in 2023 compared to previous years is a point of concern and may require further investigation to identify the underlying reasons.