Forward Air Corporation (FWRD)
Profitability ratios
Return on sales
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 14.71% | 7.14% | 2.05% | -1.10% | 4.11% | 15.88% | 22.43% | 26.81% | 28.24% | 27.71% | 26.68% | 25.25% | 23.26% | 21.98% | 20.51% | 19.52% | 18.51% | 17.69% | 18.00% | 18.41% |
| Operating profit margin | 0.52% | -1.99% | -1.98% | -2.60% | -1.00% | 6.28% | 9.14% | 11.74% | 13.40% | 13.48% | 13.14% | 12.21% | 10.97% | 9.58% | 8.25% | 7.44% | 6.10% | 5.35% | 6.13% | 6.52% |
| Pretax margin | -43.31% | -50.51% | -59.75% | -64.87% | -5.17% | 4.28% | 8.61% | 11.30% | 13.06% | 13.22% | 12.92% | 12.01% | 10.75% | 9.32% | 7.95% | 7.10% | 5.73% | 5.00% | 5.82% | 6.26% |
| Net profit margin | -30.86% | -33.02% | -38.28% | -38.81% | -5.10% | 0.74% | 6.30% | 8.32% | 9.66% | 9.79% | 9.77% | 8.71% | 7.77% | 6.37% | 3.93% | 3.69% | 2.00% | 1.82% | 3.91% | 4.23% |
Based on the provided data, Forward Air Corporation's profitability ratios have exhibited fluctuations over the years.
1. Gross Profit Margin:
The gross profit margin has shown an overall increasing trend from June 30, 2020, to June 30, 2023, peaking at 28.24% on March 31, 2023. However, there was a significant drop to 15.88% on December 31, 2023, and a further decline to 4.11% on March 31, 2024. The margin then fluctuated between negative and positive values, indicating volatility in the company's ability to generate revenue after deducting the cost of goods sold.
2. Operating Profit Margin:
The operating profit margin also experienced variability, with a general uptrend from June 30, 2020, to June 30, 2022, reaching 12.21%. However, the margin declined sharply, even registering negative values from March 31, 2024, to March 31, 2025. This indicates fluctuating efficiency in managing operational expenses and generating profits from core business activities.
3. Pretax Margin:
The pretax margin followed a similar pattern of fluctuation, with an upward trajectory until June 30, 2022, where it peaked at 12.01%. Subsequently, the margin decreased significantly, plunging into negative territory from March 31, 2024, to March 31, 2025. This suggests challenges in controlling expenses and earning profits before accounting for taxes.
4. Net Profit Margin:
The net profit margin displayed volatility, with periods of growth and decline. The margin increased steadily from June 30, 2020, to December 31, 2022, reaching 9.79%. However, it fell sharply from March 31, 2023, onwards, turning negative from March 31, 2024, to March 31, 2025. This indicates fluctuations in the company's ability to convert revenue into net income.
In conclusion, Forward Air Corporation's profitability ratios have shown inconsistency, with periods of growth followed by steep declines. The fluctuations in these margins suggest challenges in maintaining profitability and controlling costs, highlighting the need for strategic management and operational efficiency improvements.
Return on investment
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 0.47% | -1.76% | -1.41% | -1.64% | -0.43% | 3.26% | 13.24% | 18.05% | 21.13% | 22.02% | 21.63% | 18.99% | 16.62% | 14.25% | 11.96% | 10.08% | 7.96% | 6.67% | 7.82% | 8.31% |
| Return on assets (ROA) | -28.25% | -29.15% | -27.31% | -24.51% | -2.18% | 0.38% | 9.12% | 12.78% | 15.24% | 15.99% | 16.08% | 13.54% | 11.77% | 9.47% | 5.69% | 5.00% | 2.61% | 2.27% | 4.99% | 5.40% |
| Return on total capital | -378.56% | -439.20% | -503.21% | -402.46% | -1.91% | 12.98% | 23.68% | 31.74% | 37.79% | 37.61% | 37.58% | 34.22% | 31.70% | 26.83% | 23.05% | 19.82% | 15.08% | 13.40% | 15.48% | 16.36% |
| Return on equity (ROE) | -327.83% | -338.30% | -369.11% | -264.94% | -9.33% | 1.53% | 16.31% | 22.48% | 27.26% | 27.32% | 27.94% | 24.40% | 22.45% | 17.83% | 10.97% | 9.82% | 4.87% | 4.34% | 9.48% | 10.22% |
Forward Air Corporation's profitability ratios have shown fluctuations over the periods analyzed. The Operating return on assets (Operating ROA) experienced an increasing trend from June 30, 2020, reaching a peak at 22.02% on December 31, 2022, before declining to 0.47% on March 31, 2025. This suggests that the company's operating performance in generating profit from its assets varied significantly during this period.
Return on assets (ROA) followed a similar pattern, with a steady increase until September 30, 2022, where it peaked at 16.08%, then declined sharply to -28.25% on March 31, 2025. This indicates that the company's overall profitability in relation to its total assets deteriorated considerably in the latter part of the period.
Return on total capital saw a continuous rise in profitability until June 30, 2022, where it reached 34.22%, before dropping to 31.74% on June 30, 2023. The ratio then declined further to -378.56% on March 31, 2025, demonstrating a substantial negative return on the company's total capital.
Return on equity (ROE) exhibited a similar pattern to the other profitability ratios, with a general upward trend until June 30, 2022, where it peaked at 24.40%. However, the ratio decreased to 22.48% on June 30, 2023, and continued to decline significantly to -327.83% on March 31, 2025. This indicates a substantial decrease in the company's ability to generate returns for its equity shareholders.
Overall, the profitability ratios of Forward Air Corporation reflect a period of fluctuating performance, with peaks in profitability followed by significant declines. It is essential for the company to closely monitor and manage its operational and financial performance to ensure sustained profitability and value creation for its stakeholders.