Mister Car Wash, Inc. Common Stock (MCW)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 70.78% | 60.77% | 69.37% | 65.03% | 66.26% |
| Operating profit margin | 17.99% | 19.22% | 21.42% | -3.65% | 18.30% |
| Pretax margin | 10.32% | 11.11% | 16.64% | -6.22% | 13.42% |
| Net profit margin | 7.06% | 8.64% | 12.88% | -2.91% | 10.51% |
Mister Car Wash, Inc. Common Stock has shown fluctuating trends in its profitability ratios over the years based on the provided data. The gross profit margin has displayed a general upward trend, increasing from 66.26% in 2020 to 70.78% in 2024, indicating the company's ability to efficiently generate revenue after accounting for the cost of goods sold.
However, the operating profit margin tells a different story, with a significant dip in 2021 to -3.65% before recovering and stabilizing around 18-19% in the subsequent years. This negative margin in 2021 implies that operational expenses exceeded operating income during that period.
Similarly, the pretax margin reflects a negative trend in 2021 at -6.22%, followed by a gradual improvement but not reaching 2020 levels. This indicates the company's ability to manage pre-tax income relative to revenue, but there may be ongoing challenges impacting profitability.
The net profit margin, representing the company's bottom line profitability, also saw a decline from 10.51% in 2020 to 7.06% in 2024. This suggests that after accounting for all expenses, Mister Car Wash, Inc. is generating less profit relative to sales compared to previous years.
In conclusion, while the gross profit margin shows improvement, the operating, pretax, and net profit margins indicate varying levels of profitability challenges that Mister Car Wash, Inc. Common Stock has faced in recent years. Analysis of these ratios provides insights into the company's operational efficiency and overall financial health.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.77% | 6.18% | 6.99% | -1.13% | 5.40% |
| Return on assets (ROA) | 2.26% | 2.78% | 4.20% | -0.90% | 3.10% |
| Return on total capital | 18.25% | 19.47% | 10.62% | -6.65% | 847.93% |
| Return on equity (ROE) | 7.04% | 8.76% | 14.09% | -3.35% | 362.78% |
Based on the provided data for Mister Car Wash, Inc. Common Stock profitability ratios:
1. Operating Return on Assets (Operating ROA):
- The Operating ROA for Mister Car Wash, Inc. Common Stock fluctuated over the years, with a notable increase from 2020 to 2022 followed by a slight decrease in 2023 and then 2024. The company generated a positive Operating ROA in most years, indicating its ability to generate operating profit from its assets.
2. Return on Assets (ROA):
- The ROA for Mister Car Wash, Inc. Common Stock experienced negative returns in 2021 but improved in the following years. The return on assets was relatively low, suggesting that the company's profitability in generating earnings from its assets was not very high during the period under review.
3. Return on Total Capital:
- The Return on Total Capital for Mister Car Wash, Inc. Common Stock was significantly high in 2020, dropped to negative in 2021, but then showed a positive trend in the subsequent years. This ratio indicates a company's efficiency in generating profits from its total invested capital, including both debt and equity.
4. Return on Equity (ROE):
- The ROE for Mister Car Wash, Inc. Common Stock demonstrated a similar pattern to the ROA, with negative returns in 2021 but turning positive in the later years. The ROE measures the return on equity investments and reflects the company's ability to generate profits for its shareholders.
In conclusion, while the company faced a period of negative returns in 2021, it showed improvement in profitability ratios in the following years, especially in terms of ROA, ROE, and Return on Total Capital. These ratios indicate a mixed performance in terms of profitability and efficiency in utilizing assets and capital to generate returns for the company and its investors.