Mister Car Wash Inc (MCW)
Profitability ratios
Return on sales
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |
|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 82.09% | 82.74% | 82.83% | 83.02% | 83.42% | 82.33% | 82.24% | 59.51% |
| Operating profit margin | 20.91% | 21.35% | 21.47% | 21.77% | 22.47% | 24.67% | 24.88% | 0.07% |
| Pretax margin | 12.10% | 13.04% | 14.18% | 15.59% | 17.45% | 20.51% | 21.18% | -4.89% |
| Net profit margin | 9.41% | 10.15% | 10.76% | 11.83% | 13.51% | 16.53% | 17.40% | -1.50% |
Mister Car Wash Inc has shown a consistent and healthy trend in its profitability ratios over the past five quarters. The gross profit margin has remained strong, hovering around the high 60% range, indicating efficient cost management and pricing strategies. Similarly, the operating profit margin has also demonstrated stability at above 19%, showing the company's ability to generate profits from its core operations.
However, there is a slight downward trend in the pretax margin, which decreased from 16.64% in Q4 2022 to 11.11% in Q4 2023. This suggests that the company's profitability before taxes has been impacted, potentially due to increased operating expenses or other non-operating costs.
The net profit margin, a key indicator of overall profitability, has also shown a decreasing trend, declining from 12.88% in Q4 2022 to 8.64% in Q4 2023. This decrease indicates that after accounting for all expenses, the company's bottom line profit is decreasing.
In conclusion, while Mister Car Wash Inc has maintained strong gross and operating profit margins, there are some concerns with the declining pretax and net profit margins. Further analysis of the company's expenses and revenue generation methods may be necessary to address these profitability challenges.
Return on investment
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |
|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.18% | 6.29% | 6.35% | 6.67% | 6.99% | 7.45% | 7.53% | 0.02% |
| Return on assets (ROA) | 2.78% | 2.99% | 3.18% | 3.63% | 4.20% | 5.00% | 5.26% | -0.45% |
| Return on total capital | 9.83% | 10.05% | 10.20% | 10.51% | 11.06% | 11.74% | 11.73% | -0.17% |
| Return on equity (ROE) | 8.76% | 9.58% | 10.40% | 11.89% | 14.09% | 16.95% | 18.04% | -1.59% |
Mister Car Wash Inc's profitability ratios show a mixed performance over the past five quarters. The Operating Return on Assets (Operating ROA) has remained relatively steady around 6% to 7%, indicating the company's ability to generate operating income from its assets. However, the Return on Assets (ROA) has witnessed a slight decline from 4.20% in Q4 2022 to 2.78% in Q4 2023, suggesting a decrease in overall profitability relative to total assets.
The Return on Total Capital has also exhibited a downward trend, dropping from 10.91% in Q4 2022 to 9.76% in Q4 2023. This metric reflects the efficiency of the company in generating returns from both debt and equity investments. Additionally, the Return on Equity (ROE) has experienced a consistent decrease from 14.09% in Q4 2022 to 8.76% in Q4 2023, indicating decreasing profitability relative to shareholder equity.
Overall, while Mister Car Wash Inc has shown stability in Operating ROA, there are concerns regarding the declining trends in ROA, Return on Total Capital, and ROE. It is crucial for the company to assess its operational efficiency and profitability drivers to maintain a competitive edge in the market and ensure sustained financial performance.