Callaway Golf Company (MODG)
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 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 72.77% | 72.63% | 72.57% | 72.95% | 72.92% | 79.45% | 79.39% | 79.36% | 79.84% | 68.77% | 62.12% | 52.83% | 42.08% | 43.24% | 44.58% | 45.68% | 46.24% | 46.28% | 45.64% | 46.17% |
| Operating profit margin | 5.80% | 5.78% | 5.70% | 6.10% | 6.62% | 6.31% | 6.72% | 6.45% | 6.65% | 8.28% | 9.03% | -3.96% | -6.75% | -6.39% | -8.29% | 6.54% | 8.00% | 7.39% | 6.01% | 8.40% |
| Pretax margin | 0.85% | 1.05% | 1.36% | 2.30% | 3.66% | 3.26% | 3.67% | 2.93% | 11.39% | 14.53% | 17.08% | 8.73% | -8.16% | -7.42% | -9.48% | 4.78% | 5.79% | 5.84% | 4.84% | 8.16% |
| Net profit margin | 2.32% | 2.44% | 2.68% | 2.41% | 4.07% | 5.45% | 4.11% | 3.94% | 10.46% | 11.22% | 15.81% | 6.59% | -8.12% | -7.70% | -9.55% | 3.76% | 4.79% | 5.25% | 4.24% | 6.78% |
Topgolf Callaway Brands Corp has shown a consistent and healthy gross profit margin, with a gradual increase over the quarters, reaching 61.94% in Q4 2023. This indicates the company's ability to control direct costs related to production and distribution.
The operating profit margin has remained relatively stable around 5.5-6.5% throughout the quarters, showing that the company has been efficient in managing its operating expenses to generate profit from its core business operations.
However, there has been a decreasing trend in the pretax margin, which dropped from 3.55% in Q4 2022 to 0.81% in Q4 2023. This indicates that the company's earnings before taxes have been decreasing in relation to its total revenue. This could be a cause for further investigation into the company's tax strategies or other factors affecting profitability.
The net profit margin has also shown variability, with a significant decrease from 5.30% in Q3 2022 to 2.22% in Q4 2023. This means that the company's bottom line profitability has been impacted, possibly due to higher expenses or lower revenue generation.
Overall, while Topgolf Callaway Brands Corp has maintained a healthy level of profitability, there are some fluctuations in the margins that may need attention to ensure sustainable and consistent profitability in the future.
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 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 2.61% | 2.62% | 2.57% | 2.72% | 2.99% | 2.88% | 3.00% | 2.76% | 2.64% | 3.07% | 2.95% | -0.99% | -5.33% | -4.88% | -6.40% | 4.86% | 6.77% | 6.06% | 4.28% | 5.80% |
| Return on assets (ROA) | 1.04% | 1.11% | 1.21% | 1.08% | 1.84% | 2.49% | 1.84% | 1.69% | 4.16% | 4.16% | 5.17% | 1.64% | -6.41% | -5.88% | -7.36% | 2.79% | 4.05% | 4.31% | 3.02% | 4.68% |
| Return on total capital | 4.54% | 4.37% | 4.31% | 4.73% | 5.75% | 5.40% | 5.49% | 4.84% | 9.90% | 10.19% | 9.95% | 4.38% | -6.08% | -5.13% | -7.70% | 9.37% | 11.11% | 9.84% | 7.28% | 10.16% |
| Return on equity (ROE) | 2.45% | 2.52% | 2.75% | 2.52% | 4.18% | 5.37% | 3.95% | 3.68% | 8.74% | 8.27% | 10.06% | 3.23% | -18.79% | -16.79% | -21.93% | 7.85% | 10.35% | 10.31% | 7.69% | 12.20% |
The profitability ratios of Topgolf Callaway Brands Corp depict a consistent performance over the past eight quarters. Operating return on assets (Operating ROA) has ranged from 2.57% to 2.99% during this period, suggesting that the company generates between $2.57 to $2.99 in operating income for every $100 in total assets. Return on assets (ROA) has shown a similar trend, ranging from 1.04% to 2.49%, indicating that the company's overall profitability has fluctuated but generally remains positive.
Return on total capital has hovered between 3.64% and 4.48%, reflecting the company's ability to generate returns on the total capital employed in its operations. Return on equity (ROE) has exhibited a comparable pattern, varying between 2.45% and 5.37%, indicating how efficiently the company is utilizing shareholders' equity to generate profits.
Overall, the profitability ratios of Topgolf Callaway Brands Corp suggest a stable performance in terms of generating returns from assets, capital, and equity. However, there may be opportunities for improvement in enhancing overall profitability levels to drive sustainable growth and value for investors.