MasterBrand Inc. (MBC)
Profitability ratios
Return on sales
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | |
|---|---|---|---|---|
| Gross profit margin | 32.48% | 33.09% | 33.58% | 33.54% |
| Operating profit margin | 8.73% | 9.57% | 11.01% | 11.29% |
| Pretax margin | 6.23% | 7.07% | 8.62% | 8.92% |
| Net profit margin | 4.66% | 5.46% | 6.69% | 6.86% |
MasterBrand Inc.'s profitability ratios indicate a gradual decline over the four quarters of the year 2024. The Gross profit margin, which represents the proportion of revenue retained after accounting for direct costs, started at 33.54% in March and slightly decreased to 32.48% by December. This downward trend suggests potentially increasing cost pressures or pricing challenges.
Similarly, the Operating profit margin, measuring the company's operating efficiency, decreased from 11.29% in March to 8.73% in December. The company's ability to generate profit from its core operations weakened as the year progressed, indicating potential operational inefficiencies or increased operating expenses.
The Pretax margin, which reflects the company's profitability before taxes, also experienced a decline from 8.92% in March to 6.23% in December. This decrease suggests that MasterBrand Inc. faced challenges in generating profits after accounting for operating expenses but before tax obligations.
Furthermore, the Net profit margin, representing the bottom line profitability after all expenses are deducted, decreased from 6.86% in March to 4.66% in December. The diminishing net profit margin indicates that the company's profitability after all expenses, including taxes, decreased progressively throughout the year.
Overall, the downward trend in MasterBrand Inc.'s profitability ratios highlights potential challenges in maintaining profitability and efficiency in its operations. Analyzing these ratios can help stakeholders understand the company's financial health and performance over time.
Return on investment
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | |
|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.04% | 8.76% | 12.10% | 12.64% |
| Return on assets (ROA) | 4.30% | 5.00% | 7.36% | 7.69% |
| Return on total capital | 10.25% | 10.94% | 15.02% | 15.79% |
| Return on equity (ROE) | 9.72% | 11.49% | 14.18% | 15.01% |
The profitability ratios of MasterBrand Inc. show a declining trend over the four quarters analyzed.
1. Operating return on assets (Operating ROA) decreased from 12.64% in March 2024 to 8.04% in December 2024. This indicates that the company's operating income generated per dollar of assets has been decreasing.
2. Return on assets (ROA) also decreased from 7.69% in March 2024 to 4.30% in December 2024. This shows that the overall profitability generated from its assets has been on a downward trend.
3. Return on total capital decreased from 15.79% in March 2024 to 10.25% in December 2024. This ratio indicates the overall profitability of the company in relation to its total capital, and the declining trend suggests a decrease in efficiency in generating returns from the total invested capital.
4. Return on equity (ROE) decreased from 15.01% in March 2024 to 9.72% in December 2024. This indicates a decline in the company's ability to generate profits from the shareholders' equity.
Overall, the decreasing trend in profitability ratios suggests that MasterBrand Inc. may be facing challenges in effectively utilizing its assets and capital to generate profits for its shareholders. Further analysis of the company's operations and financial management practices may be needed to address and reverse this downward trend in profitability.