Kirby Corporation (KEX)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 25.27% | 22.64% | 18.76% | 16.91% | 20.29% |
| Operating profit margin | 12.22% | 10.84% | -0.01% | -5.65% | -3.29% |
| Pretax margin | 11.11% | 9.51% | 5.92% | -12.93% | -21.25% |
| Net profit margin | 8.78% | 7.21% | 4.39% | -10.98% | -12.51% |
Kirby Corporation's profitability ratios demonstrate varying trends over the years. The gross profit margin, which indicates efficiency in generating revenue after accounting for the cost of goods sold, shows an increase from 2021 to 2024, reaching 25.27%. This suggests improvements in managing production costs and pricing strategies.
The operating profit margin, reflecting the company's ability to control operating expenses, experienced fluctuations but showed a positive trend from negative values in 2020 and 2021 to 12.22% in 2024. This indicates enhanced operational efficiency and cost management over the years.
The pretax margin, representing profitability before taxes, revealed an increase from 2020 to 2024, indicating improved overall financial performance. The net profit margin, indicating the percentage of revenue that translates to net income, also increased steadily over the years, reaching 8.78% in 2024. This suggests effective management of after-tax profitability.
Overall, Kirby Corporation's profitability ratios demonstrate positive trends, showcasing improvements in revenue management, cost control, and overall financial performance over the years.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.82% | 5.86% | -0.00% | -2.35% | -1.20% |
| Return on assets (ROA) | 4.90% | 3.90% | 2.20% | -4.57% | -4.58% |
| Return on total capital | 13.72% | 10.51% | 5.57% | -9.65% | -13.36% |
| Return on equity (ROE) | 8.68% | 7.00% | 4.02% | -8.54% | -8.80% |
Based on the provided data, we can analyze Kirby Corporation's profitability ratios as follows:
1. Operating Return on Assets (Operating ROA):
- The Operating ROA for Kirby Corporation was -1.20% as of December 31, 2020, and decreased to -2.35% by December 31, 2021. However, the company's performance improved as the Operating ROA increased to 5.86% by December 31, 2023, and further to 6.82% by December 31, 2024. This indicates that the company generated more operating income relative to its assets in the latter years.
2. Return on Assets (ROA):
- The ROA reflects the overall profitability of Kirby Corporation in relation to its assets. The ROA was negative in 2020 and 2021, but turned positive in subsequent years, reaching 4.90% as of December 31, 2024. This indicates that the company became more efficient in generating profits from its assets over time.
3. Return on Total Capital:
- Kirby Corporation's Return on Total Capital was negative in 2020 and 2021 but improved significantly in the following years. The ratio reached 13.72% by December 31, 2024, indicating that the company generated higher returns on the total capital employed in its operations.
4. Return on Equity (ROE):
- The ROE, which measures the profitability of the company for its shareholders, also exhibited a similar trend of improvement over the years. Kirby Corporation's ROE was negative in 2020 and 2021 but turned positive and increased to 8.68% by December 31, 2024. This suggests that the company was able to generate better returns for its equity investors.
Overall, the trend in profitability ratios for Kirby Corporation shows a positive performance trajectory, with improvements in operating efficiency and profitability over the years, indicating better utilization of assets and capital to generate returns for both the company and its shareholders.