Manhattan Associates Inc (MANH)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 38.69% | 36.52% | 34.68% | 35.01% | 33.73% |
| Operating profit margin | 24.94% | 22.50% | 19.85% | 20.22% | 19.48% |
| Pretax margin | 25.44% | 22.91% | 20.55% | 20.19% | 19.43% |
| Net profit margin | 20.82% | 18.93% | 16.76% | 16.63% | 14.90% |
Manhattan Associates Inc has demonstrated a consistent improvement in its profitability ratios over the past five years. The gross profit margin, a key indicator of a company's ability to generate profit from its core operations, has progressively increased from 33.73% in December 2020 to 38.69% in December 2024. This suggests that the company has been effectively managing its production costs and pricing strategies.
Moreover, the operating profit margin, which reflects the efficiency of the company's operations in generating profit before interest and taxes, has also shown a positive trend, rising from 19.48% in December 2020 to 24.94% in December 2024. This indicates that Manhattan Associates has been successful in controlling its operating expenses and improving operational efficiency.
The pretax margin, representing the proportion of earnings before taxes in relation to total revenue, has consistently increased from 19.43% in December 2020 to 25.44% in December 2024. This suggests that the company has managed its tax obligations effectively while increasing profitability.
Furthermore, the net profit margin, which shows the percentage of each dollar of revenue that translates into profit after all expenses have been deducted, has also witnessed growth over the years, from 14.90% in December 2020 to 20.82% in December 2024. This indicates that Manhattan Associates has been able to efficiently manage its expenses and improve its bottom line performance.
Overall, Manhattan Associates Inc's profitability ratios reflect a positive trend, showcasing the company's ability to enhance profitability, control costs, and generate higher returns for its shareholders 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) | 34.53% | 31.17% | 26.78% | 24.89% | 24.51% |
| Return on assets (ROA) | 28.82% | 26.22% | 22.62% | 20.47% | 18.74% |
| Return on total capital | 87.45% | 75.42% | 67.33% | 53.60% | 52.11% |
| Return on equity (ROE) | 73.00% | 63.45% | 56.86% | 44.08% | 39.85% |
Manhattan Associates Inc has shown a consistent improvement in profitability ratios over the past five years.
- Operating return on assets (Operating ROA) has increased from 24.51% in December 2020 to 34.53% in December 2024, indicating the company's ability to generate profits from its core operations.
- Return on assets (ROA) has also displayed a positive trend, rising from 18.74% in December 2020 to 28.82% in December 2024, signifying the company's efficiency in utilizing its assets to generate profits.
- Return on total capital has shown significant growth, increasing from 52.11% in December 2020 to 87.45% in December 2024, demonstrating the company's ability to generate returns for both equity and debt holders.
- Return on equity (ROE) has consistently improved from 39.85% in December 2020 to 73.00% in December 2024, reflecting the company's ability to generate returns for its shareholders.
Overall, Manhattan Associates Inc's profitability ratios exhibit a strong performance and a positive trajectory over the years, showcasing efficient asset utilization and a solid financial position. Investors may view these increasing profitability metrics positively as a sign of the company's operational effectiveness and financial health.