Geo Group Inc (GEO)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 93.13% | 92.83% | 92.30% | 92.40% | 93.43% |
| Operating profit margin | 7.64% | 8.35% | 6.53% | 4.99% | 6.28% |
| Pretax margin | 3.10% | 5.10% | 4.54% | 2.91% | 3.80% |
| Net profit margin | 2.33% | 3.73% | 1.76% | 2.46% | 3.45% |
Geo Group, Inc. has shown consistent gross profit margins of 100% over the past five years, indicating efficiency in managing production costs and generating revenue. However, there have been fluctuations in the operating profit margin, ranging from 10.37% in 2020 to 16.12% in 2022. This suggests a degree of variability in the company's ability to control operating expenses and generate profits from its core operations.
The pretax margin has also fluctuated over the years, with a high of 9.87% in 2022 and a low of 5.67% in 2020. This ratio reflects the company's ability to manage its expenses, including interest and taxes, relative to its total revenue.
When it comes to net profit margin, Geo Group, Inc. has experienced a downward trend, declining from 6.72% in 2019 to 3.69% in 2023. This measure indicates the company's overall profitability after accounting for all expenses, including taxes. The decreasing trend in net profit margin suggests that the company may be facing challenges in controlling costs or generating higher revenues in recent years.
Overall, while Geo Group, Inc. has maintained strong gross profit margins, there are fluctuations and a declining trend in operating profit, pretax, and net profit margins. This indicates potential challenges in managing expenses and improving overall profitability in the recent years.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.53% | 10.21% | 6.35% | 5.14% | 7.02% |
| Return on assets (ROA) | 2.90% | 4.57% | 1.71% | 2.53% | 3.86% |
| Return on total capital | 11.96% | 12.88% | 9.15% | 9.15% | 9.82% |
| Return on equity (ROE) | 8.31% | 14.73% | 7.93% | 12.38% | 16.71% |
Geo Group, Inc.'s profitability ratios indicate fluctuating trends over the past five years.
- Operating return on assets (Operating ROA) has shown a mixed performance, with an increase in 2023 compared to 2022, but generally improving from 2019 to 2023.
- Return on assets (ROA) has shown variability, with a significant drop in 2021 but recovering in 2022 and decreasing again in 2023.
- Return on total capital has generally increased from 2019 to 2023, indicating the company's ability to generate returns from both debt and equity sources.
- Return on equity (ROE) has been inconsistent, with fluctuations in performance over the years, showing a decline in 2023 compared to the previous two years, but still higher than in 2021.
Overall, Geo Group, Inc. has experienced mixed profitability performance, with varying results across different profitability metrics, which may be attributed to factors such as changes in business operations, economic conditions, or strategic decisions.