Callaway Golf Company (MODG)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 72.82% | 73.05% | 71.07% | 42.40% | 46.31% |
| Operating profit margin | 5.80% | 6.62% | 6.71% | -6.80% | 8.01% |
| Pretax margin | 0.85% | 3.66% | 11.50% | -8.22% | 5.79% |
| Net profit margin | 2.32% | 4.07% | 10.56% | -8.18% | 4.80% |
Topgolf Callaway Brands Corp's profitability ratios have shown some fluctuations over the past five years. The gross profit margin has generally been increasing, indicating efficient cost management and improving revenue generation. This suggests the company has been effectively controlling its production and sales costs to improve profitability.
However, the operating profit margin has been somewhat inconsistent over the years, showing a decrease in 2020 before recovering in 2021 and then declining slightly in 2023. This could indicate variations in operating expenses or challenges in maintaining operating profitability consistently.
The pretax margin has been volatile, with a significant decline in 2020 followed by a sharp increase in 2021. This suggests fluctuations in the company's non-operating income and expenses, impacting its overall profitability.
The net profit margin also reflects these fluctuations, with negative margins in 2020 and slightly lower margins in 2023 compared to 2022. The variability in net profit margin indicates potential challenges in managing expenses and generating consistent bottom-line profits.
Overall, while Topgolf Callaway Brands Corp has shown improvement in its gross profit margin, there are areas of concern in maintaining consistent operating and net profit margins, suggesting a need for further analysis of the company's cost structure and revenue streams.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 2.61% | 2.99% | 2.64% | -5.33% | 6.77% |
| Return on assets (ROA) | 1.04% | 1.84% | 4.16% | -6.41% | 4.05% |
| Return on total capital | 4.54% | 5.75% | 9.90% | -6.08% | 11.11% |
| Return on equity (ROE) | 2.45% | 4.18% | 8.74% | -18.78% | 10.35% |
Topgolf Callaway Brands Corp's profitability ratios show a mixed performance over the past five years. The operating return on assets (Operating ROA) has fluctuated within a narrow range, with a slight decrease in 2023 compared to 2022. This indicates that the company's operating efficiency in generating profits from its assets has slightly declined.
The Return on assets (ROA) has been volatile, with significant fluctuations from year to year. The negative ROA in 2020 suggests that the company experienced a loss for that period, but it has since improved in the following years, although it remains relatively low in 2023 compared to previous years.
The Return on total capital has remained relatively stable over the years, with a slight decrease in 2023 compared to 2022. This ratio indicates the company's ability to generate returns from both its debt and equity investments in the business.
The Return on equity (ROE) has shown significant variability, with a notable loss in 2020, followed by a rebound in the subsequent years. However, the ROE in 2023 has decreased compared to 2022, suggesting that the company's profitability in relation to shareholders' equity has slightly declined.
Overall, Topgolf Callaway Brands Corp's profitability ratios indicate that the company has faced challenges in maintaining consistent profitability, with fluctuations in performance over the past five years. Further analysis of the company's operational and financial strategies may be required to identify the causes of these fluctuations and to improve overall profitability.