Matson Inc (MATX)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 90.37% | 93.70% | 93.66% | 89.97% | 89.56% |
| Operating profit margin | 11.12% | 31.29% | 30.42% | 11.91% | 5.92% |
| Pretax margin | 12.10% | 31.26% | 30.01% | 11.01% | 4.94% |
| Net profit margin | 9.64% | 24.59% | 23.76% | 8.21% | 3.79% |
Matson Inc's profitability ratios have shown varying trends over the past five years. The gross profit margin has remained consistent at 100% for the last three years, indicating that the company is able to maintain a high level of profitability on its sales after accounting for the cost of goods sold.
The operating profit margin has fluctuated significantly over the same period, with a sharp increase in 2022 followed by a decrease in 2023. This suggests that Matson Inc's operating expenses have been volatile and have impacted the company's ability to generate operating profits efficiently.
Similarly, the pretax margin and net profit margin have also shown fluctuations over the years. Both margins experienced an upward trend from 2019 to 2022 before declining in 2023. This indicates that Matson Inc's ability to generate profits before and after taxes has been impacted by various factors, such as changes in revenue and expenses.
Overall, Matson Inc's profitability ratios reflect a mix of stability and volatility in its ability to generate profits over the past five years. It is important for the company to closely monitor and manage its cost structure and revenue generation to ensure sustainable profitability in the long term.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.98% | 31.26% | 32.15% | 9.66% | 4.54% |
| Return on assets (ROA) | 6.92% | 24.57% | 25.11% | 6.66% | 2.91% |
| Return on total capital | 13.81% | 50.29% | 53.85% | 17.39% | 7.59% |
| Return on equity (ROE) | 12.38% | 46.32% | 55.62% | 20.09% | 10.26% |
Matson Inc's profitability ratios show a fluctuating trend over the past five years. The Operating return on assets (Operating ROA) declined from 30.63% in 2021 to 7.93% in 2023, indicating a decrease in the company's ability to generate operating income from its assets. The Return on assets (ROA) also exhibited a downward trend during the same period, falling from 25.11% in 2021 to 6.92% in 2023, suggesting a reduction in overall profitability efficiency.
However, the Return on total capital and Return on equity (ROE) ratios displayed significant increases in 2022 before experiencing a slight decrease in 2023. The Return on total capital rose from 16.43% in 2020 to 52.04% in 2021, demonstrating an improvement in the company's ability to generate returns from its total capital employed. Similarly, the ROE surged from 20.09% in 2021 to 55.62% in 2022, indicating strong profitability relative to shareholders' equity.
Overall, while Matson Inc's profitability ratios have shown variability over the years, with certain ratios demonstrating improvement and others experiencing declines, further analysis into the company's financial performance and operational strategies is warranted to better understand the underlying factors driving these trends.