Mister Car Wash Inc (MCW)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|
| Gross profit margin | 78.55% | 80.24% | 55.20% |
| Operating profit margin | 20.91% | 22.47% | -0.65% |
| Pretax margin | 12.10% | 17.45% | -6.81% |
| Net profit margin | 9.41% | 13.51% | -3.18% |
Mister Car Wash Inc's profitability ratios for the past three years show both positive and negative trends. The gross profit margin has shown a slight improvement, increasing from 65.03% in 2021 to 69.86% in 2023. This indicates that the company is effectively managing its cost of goods sold.
However, the operating profit margin has decreased from 21.31% in 2022 to 19.23% in 2023. This suggests that the company's operating expenses have increased relative to its sales revenue, impacting its profitability.
The pretax margin has also declined significantly, from 16.64% in 2022 to 11.11% in 2023. This indicates that Mister Car Wash Inc's pre-tax profitability has decreased, possibly due to higher expenses or lower revenues.
While the net profit margin has shown improvement, increasing from -2.91% in 2021 to 8.64% in 2023, it is important to note that the company experienced negative profitability in 2021. This turnaround is positive, but the company should continue monitoring and managing its expenses to sustain and improve its profitability in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.18% | 6.99% | -0.18% |
| Return on assets (ROA) | 2.78% | 4.20% | -0.90% |
| Return on total capital | 9.83% | 11.06% | -0.50% |
| Return on equity (ROE) | 8.76% | 14.09% | -3.35% |
Mister Car Wash Inc's profitability ratios have shown varying trends over the past three years. The operating return on assets (Operating ROA) decreased from 6.95% in 2022 to 6.19% in 2023, indicating a slight decline in the company's ability to generate operating income from its assets. However, the Operating ROA remains positive, reflecting operational efficiency.
Return on assets (ROA) also decreased from 4.20% in 2022 to 2.78% in 2023. Despite the decline, the company is still able to generate a positive return on its total assets, albeit at a lower rate compared to the previous year.
Return on total capital decreased from 10.91% in 2022 to 9.76% in 2023, indicating a lower return generated from the total capital employed by the company. However, the return on total capital remains positive, suggesting that the company is utilizing capital effectively to generate profits.
Return on equity (ROE) decreased from 14.09% in 2022 to 8.76% in 2023. This significant decline in ROE indicates a lower return earned by shareholders on their equity investment in the company. The negative ROE in 2021 indicates that the company incurred a net loss for that year.
Overall, while Mister Car Wash Inc's profitability ratios have shown some decline in 2023 compared to the previous year, the company has managed to maintain positive returns across its key financial metrics, reflecting a sound operational performance and effective utilization of assets and capital.