Matson Inc (MATX)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 25.01% | 20.16% | 35.26% | 34.84% | 20.10% |
| Operating profit margin | 16.11% | 11.01% | 31.17% | 30.25% | 11.76% |
| Pretax margin | 17.52% | 12.05% | 31.14% | 29.84% | 10.87% |
| Net profit margin | 13.92% | 9.60% | 24.50% | 23.63% | 8.10% |
Matson Inc's profitability ratios have shown variability over the years. The gross profit margin has improved steadily from 20.10% in 2020 to 25.01% in 2024, indicating effective cost management and pricing strategies. The operating profit margin also increased from 11.76% in 2020 to 16.11% in 2024, reflecting better operational efficiency.
Similarly, the pretax margin has shown a positive trend, starting at 10.87% in 2020 and reaching 17.52% in 2024. This suggests that Matson Inc has been able to effectively control its operating expenses and other costs. The net profit margin, which stood at 8.10% in 2020, increased to 13.92% in 2024, indicating that the company's bottom line has strengthened over the years.
Overall, Matson Inc has experienced improvements in its profitability margins, highlighting its ability to generate profits relative to its revenues. It is essential for the company to sustain this positive momentum and continue implementing strategies that enhance profitability in the future.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 12.00% | 7.93% | 31.26% | 32.15% | 9.66% |
| Return on assets (ROA) | 10.37% | 6.92% | 24.57% | 25.11% | 6.66% |
| Return on total capital | 22.88% | 16.05% | 59.66% | 71.60% | 29.80% |
| Return on equity (ROE) | 17.96% | 12.38% | 46.32% | 55.62% | 20.09% |
Matson Inc's profitability ratios have shown variable performance over the past five years.
1. Operating Return on Assets (Operating ROA): The Operating ROA measures how efficiently the company generates operating profits from its assets. Matson Inc's Operating ROA increased significantly from 2020 (9.66%) to 2021 (32.15%) and 2022 (31.26%), indicating improved operational efficiency. However, there was a notable decline in 2023 (7.93%), followed by a moderate increase in 2024 (12.00%).
2. Return on Assets (ROA): The ROA indicates the company's overall profitability by measuring its ability to generate profits from its total assets. Matson Inc's ROA also followed a similar trend, showing a substantial improvement from 2020 (6.66%) to 2021 (25.11%) and 2022 (24.57%). However, there was a decline in 2023 (6.92%) before a slight increase in 2024 (10.37%).
3. Return on Total Capital: This ratio evaluates the company's ability to generate returns for both equity and debt holders. Matson Inc's Return on Total Capital peaked in 2021 (71.60%), indicating strong performance, but decreased in subsequent years to 2024 (22.88%).
4. Return on Equity (ROE): The ROE measures the profitability of the company from the perspective of its shareholders. Matson Inc's ROE demonstrated a similar trend to the other profitability ratios, with a significant increase in 2021 (55.62%) followed by decreases in 2022 (46.32%), 2023 (12.38%), and a slight recovery in 2024 (17.96%).
In conclusion, while Matson Inc has shown periods of strong profitability, there have been fluctuations in performance across the profitability ratios over the years. It would be important for the company to analyze the reasons behind these changes and implement strategies to maintain and improve its profitability in the future.