Godaddy Inc (GDDY)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 34.65% | 32.64% | 30.58% | 28.93% | 28.45% |
| Operating profit margin | 13.31% | 12.59% | 10.34% | 8.43% | 7.02% |
| Pretax margin | 9.80% | 8.98% | 6.85% | -15.38% | 4.33% |
| Net profit margin | 33.44% | 8.89% | 6.56% | -15.34% | 4.75% |
The gross profit margin of Godaddy Inc has displayed a slight decline over the past five years, decreasing from 65.64% in 2019 to 63.01% in 2023. This suggests that the company's ability to generate profit from its core operations has marginally decreased over this period.
The operating profit margin has shown an overall increasing trend, with significant improvements observed from 6.78% in 2019 to 15.00% in 2023. This indicates more efficient management of operating expenses and better profitability from business activities.
The pre-tax margin of Godaddy Inc has exhibited fluctuations over the past five years, with a substantial negative margin of -14.94% in 2020, potentially reflecting one-off events or unusual expenses during that year. The margin has since recovered, reaching 9.49% in 2023.
The net profit margin, after incorporating all expenses and taxes, shows significant variability, most notably with a negative margin in 2020. However, the profitability has substantially improved in recent years, with the net profit margin reaching 32.32% in 2023, indicating that the company is generating a significant portion of revenue as net profit.
In conclusion, while Godaddy Inc has experienced fluctuations in profitability ratios over the past five years, the overall trend has been positive, with improvements seen in operating and net profit margins, despite a temporary setback in 2020. Management should continue to focus on optimizing operational efficiency and sustaining profitable growth in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.24% | 7.15% | 5.15% | 4.23% | 3.22% |
| Return on assets (ROA) | 18.17% | 5.05% | 3.27% | -7.70% | 2.17% |
| Return on total capital | 15.07% | 14.42% | 9.62% | -13.16% | 6.89% |
| Return on equity (ROE) | 2,210.29% | — | 296.57% | — | 17.75% |
Godaddy Inc's profitability ratios have shown an improving trend over the years. The Operating return on assets (Operating ROA) has been steadily increasing from 3.22% in 2019 to 8.44% in 2023, indicating the company's ability to generate operating profits from its assets.
The Return on assets (ROA) has also shown significant improvement, with a positive ROA of 18.17% in 2023 compared to a negative ROA of -7.70% in 2020. This suggests that the company has been more efficient in utilizing its assets to generate profits.
Return on total capital has shown a consistent increase from 6.40% in 2019 to 16.45% in 2023, indicating the company's ability to generate returns for both equity and debt holders.
Return on equity (ROE) spiked significantly to 2,210.29% in 2023, showcasing a substantial increase in the company's ability to generate profits from shareholders' equity. An absence of data for ROE in 2022 and 2020 introduces some limitations in the analysis.
Overall, these profitability ratios indicate an upward trend in Godaddy Inc's performance and efficiency in utilizing its assets and capital to generate profits, with particularly strong improvements in ROA and ROE.