Masco Corporation (MAS)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 36.54% | 36.08% | 31.66% | 36.17% | 33.88% |
| Operating profit margin | 17.59% | 17.15% | 15.14% | 17.75% | 16.96% |
| Pretax margin | 14.31% | 15.09% | 13.21% | 7.83% | 19.55% |
| Net profit margin | 10.61% | 11.55% | 9.85% | 5.18% | 16.03% |
Masco Corporation's profitability ratios show a fluctuating trend over the past five years.
- The gross profit margin increased from 33.88% in 2020 to 36.54% in 2024, indicating an improvement in the company's ability to generate profit from its core operations.
- The operating profit margin also saw an uptrend, rising from 16.96% in 2020 to 17.59% in 2024. This suggests that Masco Corporation effectively managed its operating expenses to increase profitability.
- However, the pretax margin experienced some volatility, dropping significantly from 19.55% in 2020 to 7.83% in 2021 before recovering to 14.31% in 2024. This indicates that the company faced challenges in maintaining consistent pre-tax profitability during this period.
- The net profit margin followed a similar pattern, decreasing from 16.03% in 2020 to 5.18% in 2021, before gradually improving to 10.61% in 2024. This suggests that Masco Corporation has been working on enhancing its bottom-line profitability, although fluctuations occurred along the way.
Overall, Masco Corporation has shown improvements in its gross and operating profit margins over the years, indicating efficiency in managing costs and generating profits. However, the pretax and net profit margins experienced fluctuations, highlighting the importance of consistent financial performance management.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 27.17% | 25.14% | 25.00% | 25.20% | 22.42% |
| Return on assets (ROA) | 16.39% | 16.93% | 16.27% | 7.35% | 21.19% |
| Return on total capital | 51.13% | 45.83% | 50.28% | 32.42% | 54.80% |
| Return on equity (ROE) | — | — | — | — | 627.69% |
Masco Corporation's profitability ratios exhibit a positive trend over the past five years.
Firstly, the Operating Return on Assets (Operating ROA) increased from 22.42% in 2020 to 27.17% in 2024. This indicates that the company generated 27.17 cents of operating income for every dollar of assets in 2024, showcasing improved operational efficiency and asset utilization.
Secondly, the Return on Assets (ROA) showed some fluctuation but remained relatively stable with a slight increase from 21.19% in 2020 to 16.39% in 2024. This metric signifies the company's ability to generate profits from its assets, with the 2024 ratio indicating that Masco Corporation generated approximately 16.39 cents of profit for every dollar of assets.
Thirdly, the Return on Total Capital displayed variability with a downward trend from 54.80% in 2020 to 51.13% in 2024. This ratio highlights the efficiency of Masco Corporation in generating returns for both debt and equity investors, with the figure in 2024 suggesting a return of 51.13 cents on total capital employed.
Lastly, the Return on Equity (ROE) data is lacking for the years 2021 to 2024. However, the extremely high ROE of 627.69% in 2020 indicates that the company was very efficient in generating returns for its shareholders that year.
Overall, Masco Corporation's profitability ratios demonstrate sound financial performance and effective utilization of assets and capital over the analyzed period, with a notable improvement in the Operating ROA and stability in ROA and ROE.