Kelly Services A Inc (KELYA)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 20.35% | 19.89% | 20.45% | 18.74% | 18.36% |
| Operating profit margin | -0.35% | 0.50% | 0.30% | 0.99% | -2.08% |
| Pretax margin | -0.50% | 0.52% | -1.42% | 3.90% | -2.35% |
| Net profit margin | -0.01% | 0.75% | -1.26% | 3.18% | -1.60% |
Based on the provided data, let's analyze the profitability ratios of Kelly Services A Inc:
1. Gross Profit Margin:
- The gross profit margin has shown a steady improvement over the years, increasing from 18.36% in 2020 to 20.35% in 2024. This indicates that the company has been able to effectively manage its production costs and generate higher profits from its core business activities.
2. Operating Profit Margin:
- The operating profit margin was negative in 2020 and 2024, indicating that the company had operational losses during those years. However, there was improvement in 2021, 2022, and 2023 with positive margins, although relatively low, suggesting that the company's operating efficiency and cost management were better during those periods.
3. Pretax Margin:
- The pretax margin fluctuated over the years, being negative in 2020, 2022, and 2024, and positive in 2021 and 2023. This suggests that the company's pre-tax profitability was inconsistent, possibly due to fluctuations in revenue, expenses, or other external factors impacting profitability.
4. Net Profit Margin:
- The net profit margin, which reflects the company's overall profitability after all expenses have been deducted, was negative in 2020 and 2022, and close to breakeven in 2024. The margins were positive in 2021 and 2023. This indicates that the company had mixed results in terms of generating profits for its shareholders after accounting for all costs and taxes.
In summary, Kelly Services A Inc has shown improvements in its gross profit margin over the years, but its operating, pretax, and net profit margins have been more volatile, with periods of both profitability and losses. Further analysis of the company's cost structure, revenue sources, and efficiency measures may be needed to better understand the factors driving these profitability ratios.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -0.57% | 0.94% | 0.56% | 1.68% | -3.65% |
| Return on assets (ROA) | -0.02% | 1.41% | -2.35% | 5.39% | -2.81% |
| Return on total capital | -0.89% | 2.24% | -5.45% | 14.50% | -8.56% |
| Return on equity (ROE) | -0.05% | 2.90% | -4.98% | 11.68% | -5.99% |
Kelly Services A Inc's profitability ratios show varying performance over the years.
1. Operating return on assets (Operating ROA) improved from -3.65% in 2020 to 1.68% in 2021, but declined to 0.56% in 2022 before slightly recovering to 0.94% in 2023. However, it dropped again to -0.57% in 2024.
2. Return on assets (ROA) was negative at -2.81% in 2020, improved significantly to 5.39% in 2021, then decreased to -2.35% in 2022, and rebounded to 1.41% in 2023. However, it was close to breakeven at -0.02% in 2024.
3. Return on total capital had a negative trend, starting at -8.56% in 2020, jumping to 14.50% in 2021, then declining to -5.45% in 2022, and modestly rising to 2.24% in 2023, before dropping again to -0.89% in 2024.
4. Return on equity (ROE) also fluctuated, beginning at -5.99% in 2020, increasing to 11.68% in 2021, dropping to -4.98% in 2022, then rising to 2.90% in 2023, and falling to -0.05% in 2024.
Overall, while there were improvements in certain years, the company's profitability ratios show inconsistency and volatility, indicating the need for further analysis to understand the underlying factors impacting the company's financial performance.