Match Group Inc (MTCH)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 40.51% | 27.17% | 38.02% | 40.01% | 45.04% |
| Operating profit margin | 27.25% | 16.15% | 28.55% | 31.18% | 31.47% |
| Pretax margin | 23.09% | 11.83% | 8.64% | 7.19% | 21.75% |
| Net profit margin | 19.37% | 11.35% | 9.31% | 5.38% | 21.02% |
Match Group Inc. has shown a mixed trend in profitability ratios over the past five years. In terms of gross profit margin, the company has fluctuated slightly, with a peak in 2019 at 76.30% and a low in 2022 at 69.90%. This indicates the company's ability to generate profit after deducting the cost of goods sold has been relatively stable but experienced some volatility.
The operating profit margin has shown significant variability, ranging from a low of 12.29% in 2019 to a high of 31.18% in 2020. This suggests that Match Group Inc.'s ability to control operating expenses and generate profits from its core business operations has been inconsistent.
The pretax margin, representing the company's profit before taxes as a percentage of revenue, has also fluctuated considerably. The highest pretax margin was recorded in 2020 at 24.54%, while the lowest was in 2021 at 8.59%. This indicates that Match Group Inc. has experienced fluctuations in its profitability before accounting for tax expenses.
In terms of net profit margin, which indicates the company's bottom-line profitability after all expenses have been deducted, there has been a general improvement from 2019 to 2023. The net profit margin increased from 9.06% in 2019 to 19.37% in 2023, showing that Match Group Inc. has been more effective in controlling costs and increasing profitability over the years.
Overall, Match Group Inc.'s profitability ratios suggest that the company has experienced some variability in its ability to generate profits, but has shown improvement in its bottom-line profitability in recent years. Continued monitoring of these ratios is important to assess the company's financial health and performance going forward.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 20.34% | 12.31% | 16.82% | 24.48% | 7.72% |
| Return on assets (ROA) | 14.45% | 8.65% | 5.49% | 4.22% | 5.15% |
| Return on total capital | 23.99% | 14.82% | 23.49% | 30.73% | 11.09% |
| Return on equity (ROE) | — | — | — | — | 14.72% |
Match Group Inc.'s profitability ratios have shown a positive trend over the past five years, reflecting the company's ability to generate profits from its operations and capital utilization.
- Operating Return on Assets (Operating ROA) has increased from 7.02% in 2019 to 20.34% in 2023, indicating that the company has become more efficient in generating operating profits relative to its total assets.
- Return on Assets (ROA) has also shown an upward trend, reaching 14.45% in 2023, up from 5.17% in 2019. This indicates that Match Group has been successful in generating profits from its total assets.
- Return on Total Capital has consistently increased from 9.64% in 2019 to 23.99% in 2023, demonstrating the company's ability to generate returns on both equity and debt capital invested in the business.
- Return on Equity (ROE) data is missing for the analyzed period, so it is difficult to assess the company's profitability specifically in relation to shareholders' equity.
Overall, Match Group Inc.'s profitability ratios suggest an improving financial performance, with a strong focus on generating returns from its assets and capital base.