ManpowerGroup Inc (MAN)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 17.85% | 18.07% | 16.48% | 15.73% | 16.15% |
| Operating profit margin | 1.36% | 2.94% | 2.83% | 1.04% | 3.09% |
| Pretax margin | 1.09% | 2.82% | 2.75% | 0.82% | 3.28% |
| Net profit margin | 0.47% | 1.89% | 1.85% | 0.13% | 2.23% |
ManpowerGroup's profitability ratios have shown some fluctuations over the past five years.
- The gross profit margin has ranged from 15.69% to 18.02% during this period, with a slight decrease in 2023 compared to the previous year.
- The operating profit margin has also varied, with a significant decline in 2020 followed by a recovery in 2022, but then dropped again in 2023.
- The pretax margin reflects the company's ability to generate profits before taxes, showing some volatility but generally maintaining around the 2-3% range.
- The net profit margin, which indicates the company's bottom line profitability, has fluctuated over the years, with a notable decrease in 2020 and a slight recovery in 2022, but dropped again in 2023 to 0.47%.
Overall, ManpowerGroup's profitability ratios show some inconsistency in performance, which may indicate challenges in managing costs and efficient operations, impacting the company's ability to generate profits.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 2.90% | 6.37% | 5.96% | 2.01% | 6.99% |
| Return on assets (ROA) | 1.01% | 4.09% | 3.89% | 0.26% | 5.05% |
| Return on total capital | 7.96% | 17.07% | 18.96% | 5.29% | 17.17% |
| Return on equity (ROE) | 3.99% | 15.27% | 15.16% | 0.98% | 16.98% |
ManpowerGroup's profitability ratios show fluctuations over the past five years. The operating return on assets (Operating ROA) has varied from 2.73% in 2020 to 6.99% in 2019, with a significant drop to 3.52% in 2023. This ratio indicates how efficiently the company generates profits from its assets before interest and taxes.
The return on assets (ROA) also displays variability, ranging from 0.26% in 2020 to 5.05% in 2019, with a notable decrease to 1.01% in 2023. ROA measures the profitability of the company's assets in generating net income.
Return on total capital demonstrates a similar trend, with values ranging from 7.14% in 2020 to 16.90% in 2019, and a decrease to 9.64% in 2023. This ratio indicates the overall profitability of the company's total capital, including both debt and equity.
Furthermore, the return on equity (ROE) has shown volatility over the period, with values fluctuating from 0.98% in 2019 to 16.98% in the same year and decreasing to 3.99% in 2023. ROE reflects how well the company generates profit from shareholder investments.
In summary, ManpowerGroup's profitability ratios have exhibited fluctuations over the past five years, with varying levels of returns on assets, total capital, and equity. Analysis of these ratios can provide insights into the company's operational efficiency and profitability levels.