Match Group Inc (MTCH)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 71.51% | 68.44% | 69.90% | 71.87% | 73.41% |
| Operating profit margin | 23.66% | 0.07% | 27.89% | 12.96% | 31.18% |
| Pretax margin | 20.24% | 3.31% | 11.84% | 8.59% | 26.39% |
| Net profit margin | 15.84% | -0.05% | 11.35% | 9.31% | 24.58% |
Match Group Inc's profitability ratios have shown some fluctuations over the years.
1. Gross Profit Margin:
- The gross profit margin has decreased from 73.41% in December 2020 to 68.44% in December 2023 before slightly improving to 71.51% in December 2024. This signals a decline in the company's ability to generate profits after deducting the cost of goods sold.
2. Operating Profit Margin:
- The operating profit margin witnessed significant fluctuations, with a sharp drop from 31.18% in December 2020 to 0.07% in December 2023, indicating challenges in controlling operating expenses. However, it recovered to 23.66% in December 2024.
3. Pretax Margin:
- The pretax margin decreased from 26.39% in December 2020 to 3.31% in December 2023, reflecting a decline in profitability before improving to 20.24% in December 2024. This ratio indicates the company's ability to generate profits before accounting for taxes.
4. Net Profit Margin:
- The net profit margin also showed fluctuations, dropping from 24.58% in December 2020 to -0.05% in December 2023, indicating a period of losses. However, it improved to 15.84% in December 2024, suggesting a recovery in profitability after a period of decline.
Overall, Match Group Inc's profitability has experienced ups and downs in recent years, with improvements in certain margins after facing challenges in maintaining profitability levels.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 18.44% | 0.05% | 21.26% | 7.64% | 24.48% |
| Return on assets (ROA) | 12.34% | -0.04% | 8.65% | 5.49% | 19.29% |
| Return on total capital | — | — | — | — | — |
| Return on equity (ROE) | — | — | — | — | — |
From the provided data, Match Group Inc's profitability ratios show some fluctuations over the years.
1. Operating return on assets (Operating ROA) decreased from 24.48% in December 31, 2020 to 7.64% in December 31, 2021, but then increased to 21.26% in December 31, 2022. However, it sharply dropped to 0.05% in December 31, 2023 before recovering to 18.44% in December 31, 2024. This indicates that the company's profitability from its core operations experienced fluctuations during the period.
2. Return on assets (ROA) also followed a similar pattern. It started at 19.29% in December 31, 2020, decreased to 5.49% in December 31, 2021, and then slightly increased to 8.65% in December 31, 2022. However, it turned negative at -0.04% in December 31, 2023, before rebounding to 12.34% in December 31, 2024. This ratio demonstrates the company's overall efficiency in generating profit from its total assets.
3. Return on total capital and Return on equity (ROE) data is missing for all the years provided, which indicates that the information necessary to calculate these ratios is not available. ROE is an important measure of a company's financial performance as it indicates how efficiently the company is using its equity to generate profit.
In conclusion, Match Group Inc's profitability ratios have shown fluctuations in its ability to generate profit from its assets and core operations over the years. It is important for stakeholders to monitor these ratios to assess the company's financial health and performance accurately.