Godaddy Inc (GDDY)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 63.88% | 63.01% | 63.72% | 64.04% | 65.07% |
| Operating profit margin | 19.54% | 12.87% | 12.19% | 10.01% | -10.82% |
| Pretax margin | 16.74% | 9.49% | 8.71% | 6.65% | -14.94% |
| Net profit margin | 20.49% | 32.32% | 8.61% | 6.35% | -14.90% |
Godaddy Inc's profitability ratios have shown a mixed performance over the past few years.
The gross profit margin has slightly decreased from 65.07% in December 31, 2020, to 63.88% in December 31, 2024, indicating a slight decline in the company's ability to generate profit after considering the cost of goods sold.
On the other hand, the operating profit margin has shown significant improvement from a negative -10.82% in December 31, 2020, to 19.54% in December 31, 2024. This indicates that the company has been able to enhance its operational efficiency and control its operating expenses effectively to generate higher profits.
The pretax margin has also exhibited a positive trend, increasing from -14.94% in December 31, 2020, to 16.74% in December 31, 2024. This suggests that the company's pre-tax profitability has improved significantly over the years.
Similarly, the net profit margin has shown significant growth, from -14.90% in December 31, 2020, to 20.49% in December 31, 2024. This indicates that after accounting for all expenses, including taxes, Godaddy Inc has been able to increase its bottom-line profitability.
Overall, the company has managed to improve its profitability ratios over the years, particularly in terms of operating profit margin, pretax margin, and net profit margin, which reflects its ability to efficiently manage costs and enhance overall profitability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 10.85% | 7.24% | 7.15% | 5.15% | -5.58% |
| Return on assets (ROA) | 11.38% | 18.17% | 5.05% | 3.27% | -7.68% |
| Return on total capital | 134.79% | 1,045.50% | — | 563.04% | — |
| Return on equity (ROE) | 135.37% | 2,210.29% | — | 296.57% | — |
Based on the provided data, we can analyze Godaddy Inc's profitability ratios as follows:
1. Operating Return on Assets (Operating ROA):
- In 2020, the Operating ROA was -5.58%, indicating that the company had a negative return on its operating assets.
- The Operating ROA showed improvement over the years, reaching 10.85% by the end of 2024. This suggests that the company's operating assets became more efficient in generating profits.
2. Return on Assets (ROA):
- The ROA was negative in 2020 at -7.68%, implying that the company experienced a loss in its overall assets' utilization for generating profits.
- Subsequently, the ROA improved significantly by 2023 to 18.17%, highlighting a substantial increase in the company’s ability to generate profits from its total assets.
3. Return on Total Capital:
- The return on total capital was not provided for 2020 and 2022.
- However, in 2021, the return on total capital was remarkably high at 563.04%, indicating that the company generated substantial returns in relation to the total capital employed.
- Similarly, the return on total capital continued to be strong in 2023, amounting to 1,045.50%, before declining in 2024 to 134.79%.
4. Return on Equity (ROE):
- The ROE was not available for 2020 and 2022.
- Godaddy Inc's ROE was notable with a significant increase in 2021, reaching 296.57%. This suggests that the company generated substantial returns for its shareholders in relation to the equity invested.
- The ROE reached its peak in 2023 at an impressive 2,210.29%, indicating a substantial increase in shareholder value. The ratio then decreased to 135.37% in 2024, still representing a healthy return on equity.
In summary, Godaddy Inc showed improvements in its profitability ratios over the years, with significant enhancements in both operating and overall asset utilization, as well as generating strong returns on total capital and equity, reflecting the company's ability to generate profits and create value for its shareholders.