Callaway Golf Company (MODG)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 39.68% | 72.82% | 73.05% | 71.07% | 42.40% |
| Operating profit margin | -29.52% | 5.80% | 6.62% | 6.71% | -6.80% |
| Pretax margin | -34.59% | 0.85% | 3.66% | 11.50% | -8.22% |
| Net profit margin | -33.99% | 2.32% | 4.07% | 10.56% | -8.18% |
The gross profit margin of Callaway Golf Company has fluctuated over the years, starting at 42.40% in 2020, increasing significantly to 71.07% in 2021, and continuing to improve to 73.05% in 2022. However, there was a slight dip to 72.82% in 2023, followed by a notable decrease to 39.68% in 2024.
In terms of operating profit margin, the company reported a negative -6.80% in 2020, which improved to 6.71% in 2021 and remained relatively stable at around 6% in both 2022 and 2023. However, there was a substantial decline to -29.52% in 2024, indicating a significant decrease in operating profitability.
The pretax margin of Callaway Golf Company experienced fluctuations, starting at -8.22% in 2020 and showing significant improvement to 11.50% in 2021. However, it decreased to 3.66% in 2022 and further to 0.85% in 2023 before dropping sharply to -34.59% in 2024, indicating challenges in generating pre-tax profits.
Lastly, the net profit margin of the company also varied, starting at -8.18% in 2020, then improving to 10.56% in 2021. However, it declined to 4.07% in 2022 and further to 2.32% in 2023, before experiencing a significant drop to -33.99% in 2024, highlighting a considerable decrease in net profitability.
Overall, these profitability ratios demonstrate fluctuations in Callaway Golf Company's ability to generate profits over the years, with significant improvements followed by notable declines in certain periods.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -16.46% | 2.61% | 2.99% | 2.64% | -5.33% |
| Return on assets (ROA) | -18.96% | 1.04% | 1.84% | 4.16% | -6.41% |
| Return on total capital | -32.52% | 4.54% | 5.75% | 9.90% | -6.08% |
| Return on equity (ROE) | -60.13% | 2.45% | 4.18% | 8.74% | -18.78% |
The profitability ratios for Callaway Golf Company indicate fluctuations over the years.
- Operating return on assets (Operating ROA) increased from -5.33% in December 2020 to 2.64% in December 2021 and further to 2.99% in December 2022, showing an improvement in the company's ability to generate operating profit from its assets. However, it decreased to 2.61% in December 2023 and significantly dropped to -16.46% by December 2024.
- Return on assets (ROA) also depicted a similar pattern, starting at -6.41% in December 2020, increasing to 4.16% in December 2021, but then declining to 1.84% in December 2022 and further dropping to 1.04% in December 2023. It recorded a substantial decline to -18.96% by December 2024.
- Return on total capital started at -6.08% in December 2020, improved notably to 9.90% in December 2021, then decreased to 5.75% in December 2022, followed by a further decline to 4.54% in December 2023, and a significant drop to -32.52% by December 2024.
- Return on equity (ROE) saw significant fluctuations, starting at -18.78% in December 2020, increasing to 8.74% in December 2021 but dropping to 4.18% in December 2022, then declining to 2.45% in December 2023, and markedly decreasing to -60.13% by December 2024.
Overall, the profitability ratios show that while there were improvements in profitability metrics in the initial years, there was a subsequent decline in profitability performance by December 2024, indicating potential challenges in effectively utilizing assets and capital to generate profits for the company.