Geo Group Inc (GEO)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 100.00% | 27.72% | 30.00% | 27.81% | 24.33% |
| Operating profit margin | 11.50% | 14.60% | 16.12% | 12.77% | 9.47% |
| Pretax margin | 0.42% | 5.72% | 9.67% | 8.54% | 5.28% |
| Net profit margin | 0.00% | 4.45% | 7.23% | 3.43% | 4.81% |
Geo Group Inc's profitability ratios have shown varying trends over the years. The gross profit margin has generally improved from 24.33% in December 2020 to 30.00% in December 2022, reflecting the company's ability to generate more profit on its revenue. However, there was a significant spike to 100.00% in December 2024, which may require further investigation as it could be due to accounting anomalies or other exceptional circumstances.
The operating profit margin has also increased steadily from 9.47% in December 2020 to 16.12% in December 2022, indicating efficient cost management and operational performance. However, there was a slight decrease to 11.50% in December 2024, which might be a cause for concern as it could signify lower operating efficiency or higher expenses.
The pretax margin has shown fluctuations, reaching a peak of 9.67% in December 2022 but dropping to 0.42% in December 2024. This decline could be attributed to various factors such as changes in tax regulations, increased expenses, or a decrease in revenue.
Finally, the net profit margin, which reflects the company's overall profitability after all expenses have been deducted, has been inconsistent, ranging from 0.00% in December 2024 to 7.23% in December 2022. The drastic drop to 0.00% in December 2024 requires close scrutiny to understand the factors contributing to this result, as it could impact the company's financial health and long-term sustainability.
In summary, while Geo Group Inc has shown improvements in its gross and operating profit margins over the years, the recent fluctuations in pretax and net profit margins raise concerns about the company's overall profitability and financial performance. Further analysis and monitoring of these ratios will be crucial to assess the company's future trajectory and make informed decisions.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.67% | 9.53% | 10.19% | 6.35% | 4.99% |
| Return on assets (ROA) | 0.00% | 2.90% | 4.57% | 1.71% | 2.53% |
| Return on total capital | 17.17% | 27.59% | -126.75% | -158.49% | -188.71% |
| Return on equity (ROE) | 0.01% | 8.31% | 14.75% | 7.94% | 12.39% |
Geo Group Inc's profitability ratios show mixed performance over the years.
- Operating return on assets (Operating ROA) has exhibited an increasing trend from 4.99% in 2020 to 10.19% in 2022, before decreasing slightly to 9.53% in 2023 and 7.67% in 2024. This indicates that the company has been able to generate a higher operating profit relative to its assets in recent years.
- Return on assets (ROA) has been more volatile, starting at 2.53% in 2020, dropping to 1.71% in 2021, before showing significant improvement at 4.57% in 2022. However, it declined to 2.90% in 2023 and reached 0.00% in 2024, suggesting that the company's overall profitability in relation to its total assets has been inconsistent.
- Return on total capital has shown a drastic improvement from negative percentages in 2020 and 2021 to positive figures in 2023 and 2024, indicating that the company has been able to generate a better return for its total capital employed in more recent years.
- Return on equity (ROE) has fluctuated over the period, with a peak at 14.75% in 2022 and then dropping significantly to 0.01% in 2024. This indicates that the company's ability to generate returns for its shareholders has been inconsistent.
Overall, while the Operating ROA and Return on total capital show some positive trends, the ROA and ROE exhibit more fluctuating performance, suggesting that Geo Group Inc's profitability is not stable and may require further analysis to understand the underlying reasons for these fluctuations.