Masco Corporation (MAS)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 36.08% | 31.66% | 36.17% | 33.88% | 34.63% |
| Operating profit margin | 17.15% | 15.14% | 17.75% | 16.96% | 15.89% |
| Pretax margin | 15.09% | 13.21% | 7.83% | 19.55% | 17.02% |
| Net profit margin | 11.55% | 9.85% | 5.18% | 16.03% | 13.66% |
Masco Corp.'s profitability ratios have fluctuated over the past five years. The gross profit margin has shown variability, ranging from 31.26% in 2022 to 35.99% in 2020, with a notable improvement in 2023 at 35.60%. This indicates the company's ability to control direct costs related to production.
The operating profit margin has also exhibited fluctuations, with values ranging from 15.24% in 2022 to 18.02% in 2020. In 2023, the operating profit margin improved to 17.10%, suggesting effective management of operating expenses and higher operational efficiency.
Masco Corp.'s pretax margin has shown significant variability, with a noticeable decrease in 2021 at 8.21% compared to previous years. However, there was a rebound in 2023, with the pretax margin at 15.54%, indicating improved profitability before considering taxes.
The net profit margin has also fluctuated, with the most dramatic change occurring in 2021 when it dropped to 4.85% from 16.90% in 2020. In 2023, the net profit margin recovered to 11.40%, reflecting the company's ability to generate profits after accounting for all expenses, including interest and taxes.
Overall, Masco Corp. has shown some inconsistency in its profitability ratios over the past five years, but there are signs of improvement in 2023 compared to the previous year. Continued monitoring and analysis of these ratios will be essential to assess the company's financial performance and profitability going forward.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 25.14% | 25.00% | 25.20% | 22.42% | 21.64% |
| Return on assets (ROA) | 16.93% | 16.27% | 7.35% | 21.19% | 18.60% |
| Return on total capital | 45.83% | 50.28% | 32.42% | 54.80% | 52.21% |
| Return on equity (ROE) | — | — | — | 627.69% | — |
Masco Corp.'s profitability ratios show consistent performance in terms of generating returns in recent years. The Operating Return on Assets (Operating ROA) has been relatively stable, ranging between 21.82% to 26.01% over the past five years, with a slight increase in 2023 to 25.39%. This indicates the company's efficiency in generating operating income relative to its total assets.
The Return on Assets (ROA) has also shown steady performance, fluctuating between 16.23% to 21.03% over the same period. The decrease in ROA in 2021 to 7.28% may be a point of concern, but it rebounded to 16.92% in 2023, suggesting improved profitability.
The Return on Total Capital demonstrates strong returns, hovering between 43.26% to 52.55% in recent years. The high returns on total capital indicate Masco Corp.'s ability to generate profits from both debt and equity investments.
The absence of Return on Equity (ROE) data for the two most recent years limits the comprehensive analysis, but the significant ROE of 623.08% in 2019 implies that Masco Corp. was able to generate substantial profits for its shareholders that year.
Overall, Masco Corp. exhibits sound profitability performance based on its profitability ratios, with a consistent ability to generate returns on assets and capital.