Manhattan Associates Inc (MANH)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 36.52% | 34.68% | 35.01% | 33.73% | 33.14% |
| Operating profit margin | 22.50% | 19.85% | 20.22% | 19.48% | 18.70% |
| Pretax margin | 22.91% | 20.55% | 20.19% | 19.43% | 18.73% |
| Net profit margin | 18.93% | 16.76% | 16.63% | 14.90% | 13.84% |
Manhattan Associates, Inc. has shown consistent profitability over the past five years, as indicated by its gross profit margin, operating profit margin, pretax margin, and net profit margin.
The gross profit margin has remained relatively stable, ranging from 53.30% to 55.12%, with a slight increase in 2023 to 53.63%. This suggests that the company has been effectively managing its cost of goods sold and generating a relatively consistent level of gross profit on sales.
The operating profit margin has been gradually increasing over the years, reaching 22.60% in 2023 compared to 19.91% in 2022, indicating improved efficiency in managing operating expenses relative to revenue.
The pretax margin has also been on an upward trend, from 18.78% in 2019 to 23.01% in 2023, reflecting the company's ability to control its pre-tax profitability and generate higher earnings before taxes.
Moreover, the net profit margin, which represents the company's bottom-line profitability after all expenses have been taken into account, has consistently improved from 13.88% in 2019 to 19.01% in 2023. This indicates that Manhattan Associates, Inc. has been successful in managing not only its operational expenses but also financial costs and taxes efficiently.
Overall, Manhattan Associates, Inc.'s profitability ratios demonstrate a trend of increasing profitability and effective cost management, highlighting its ability to generate healthy profits relative to its revenue and expenses.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 31.17% | 26.78% | 24.89% | 24.51% | 31.14% |
| Return on assets (ROA) | 26.22% | 22.62% | 20.47% | 18.74% | 23.04% |
| Return on total capital | 75.42% | 67.33% | 53.60% | 52.11% | 81.48% |
| Return on equity (ROE) | 63.45% | 56.86% | 44.08% | 39.85% | 60.28% |
Manhattan Associates, Inc. has shown a consistent improvement in its profitability ratios over the past five years.
1. Operating return on assets (Operating ROA): The company's Operating ROA has increased steadily from 31.14% in 2019 to 31.17% in 2023. This indicates that Manhattan Associates has been effective in generating operating income relative to its total assets.
2. Return on assets (ROA): Manhattan Associates has also shown a positive trend in its overall ROA, increasing from 23.04% in 2019 to 26.22% in 2023. This indicates an improvement in the company's ability to generate profits from its total assets.
3. Return on total capital: The return on total capital has also shown significant growth over the years, increasing from 81.48% in 2019 to 75.42% in 2023. This suggests that Manhattan Associates has been successful in utilizing both equity and debt to generate returns for its stakeholders.
4. Return on equity (ROE): Manhattan Associates' ROE has consistently improved from 60.28% in 2019 to 63.45% in 2023. This indicates that the company has been efficient in generating profits from shareholders' equity.
Overall, Manhattan Associates, Inc. has demonstrated strong profitability ratios, indicating efficient management of assets and capital to generate profits for its stakeholders.