ManpowerGroup Inc (MAN)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 17.28% | 17.85% | 18.07% | 16.48% | 15.73% |
| Operating profit margin | 1.71% | 1.36% | 2.94% | 2.83% | 1.04% |
| Pretax margin | 1.44% | 1.09% | 2.82% | 2.75% | 0.82% |
| Net profit margin | 0.81% | 0.47% | 1.89% | 1.85% | 0.13% |
ManpowerGroup Inc's profitability ratios have shown some fluctuations over the years.
1. Gross Profit Margin: ManpowerGroup's gross profit margin has been relatively stable around the mid-teens to high teens range, with an increasing trend from 2020 to 2022. This indicates the company's ability to control production costs and generate profit from its core business activities.
2. Operating Profit Margin: The operating profit margin has shown variability, with a significant increase in 2021 followed by fluctuations in the following years. Despite the fluctuations, the company has managed to improve its operating efficiency and profitability compared to 2020.
3. Pretax Margin: ManpowerGroup's pretax margin has shown an increasing trend from 2020 to 2022, indicating the company's ability to generate profit before accounting for taxes. However, there was a slight decrease in 2023 and 2024, which could be attributed to various factors affecting the company's pre-tax profitability.
4. Net Profit Margin: The net profit margin has also exhibited fluctuations, with a notable increase in 2021 followed by a decrease in the subsequent years. This indicates that while the company has shown improvement in generating profit after accounting for all expenses including taxes, there are still challenges impacting its bottom line performance.
Overall, ManpowerGroup's profitability ratios reflect a mix of improvements and challenges, highlighting the importance of continued monitoring and strategic management of the company's operations to sustain and enhance its profitability in the future.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.73% | 2.90% | 6.37% | 5.96% | 2.01% |
| Return on assets (ROA) | 1.77% | 1.01% | 4.09% | 3.89% | 0.26% |
| Return on total capital | 10.02% | 7.96% | 17.07% | 18.96% | 5.29% |
| Return on equity (ROE) | 6.83% | 3.99% | 15.27% | 15.16% | 0.98% |
ManpowerGroup Inc's profitability ratios indicate a mixed performance over the years. The Operating return on assets (Operating ROA) increased from 2.01% in 2020 to 6.37% in 2022, reflecting improved operational efficiency. However, there was a slight decline to 2.90% in 2023 and a subsequent increase to 3.73% in 2024.
Similarly, the Return on assets (ROA) showed an upward trend from 0.26% in 2020 to 4.09% in 2022. However, there was a drop to 1.01% in 2023 before a slight recovery to 1.77% in 2024.
The Return on total capital ratio improved significantly from 5.29% in 2020 to 18.96% in 2021, indicating better utilization of both equity and debt. This ratio then decreased to 10.02% in 2024.
The Return on equity (ROE) followed a similar pattern, with a substantial increase from 0.98% in 2020 to 15.27% in 2022. However, there was a decline to 6.83% in 2024.
Overall, ManpowerGroup Inc's profitability ratios demonstrate a varying performance in generating profits from its assets, capital, and equity over the years, with some fluctuations in efficiency and return levels.