MasTec Inc (MTZ)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | -1.63% | -1.05% | 3.26% | 5.16% | 10.28% |
| Operating profit margin | -9.83% | -9.10% | -2.43% | -1.77% | 5.05% |
| Pretax margin | -0.71% | 0.43% | 5.38% | 6.73% | 7.09% |
| Net profit margin | -0.42% | 0.34% | 4.14% | 5.11% | 5.46% |
MasTec Inc's profitability ratios have exhibited a declining trend over the past five years. The gross profit margin has decreased from 10.28% in 2019 to -1.63% in 2023, indicating a significant drop in profitability from the company's core operations. This downward trend is also evident in the operating profit margin, which declined from 5.05% in 2019 to -9.83% in 2023. The negative values of both gross and operating profit margins in the last two years highlight the challenges MasTec has faced in generating profit from its regular business activities.
The pretax margin, a measure of the company's overall profitability before taxes, has also shown a decreasing trend, falling from 7.09% in 2019 to -0.71% in 2023. This suggests that MasTec has been experiencing difficulties in generating profits after accounting for operating expenses and interest payments. Similarly, the net profit margin, which reflects the company's profitability after all expenses have been deducted, has declined from 5.46% in 2019 to -0.42% in 2023. This indicates that MasTec's bottom line has been negatively impacted by various factors over the years.
In conclusion, MasTec Inc's profitability ratios have been on a downward trajectory, indicating a decrease in profitability and efficiency in managing expenses. The company may need to address its operational challenges and implement strategies to improve its profitability 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) | -12.57% | -9.58% | -2.72% | -2.14% | 7.25% |
| Return on assets (ROA) | -0.53% | 0.36% | 4.62% | 6.18% | 7.85% |
| Return on total capital | -3.00% | 1.69% | 16.98% | 21.40% | 28.65% |
| Return on equity (ROE) | -1.85% | 1.22% | 12.95% | 16.13% | 21.95% |
MasTec Inc's profitability ratios have shown a declining trend over the past five years. The Operating return on assets (Operating ROA) has been negative, indicating that the company has not been effectively generating operating profits from its assets. This trend continued with a decrease from -2.72% in 2021 to -12.57% in 2023.
The Return on assets (ROA) has also exhibited a downward trajectory, falling from 7.85% in 2019 to a negative value of -0.53% in 2023. This indicates that MasTec Inc's ability to generate profits from its total assets has weakened over the years.
Similarly, the Return on total capital has decreased significantly from 28.65% in 2019 to -3.00% in 2023, signaling a decline in the company's profitability relative to its total capital employed.
The Return on equity (ROE) has followed a similar pattern, showing a decrease from 21.95% in 2019 to -1.85% in 2023. This indicates a decrease in shareholder value generated by MasTec Inc over the years.
Overall, MasTec Inc's profitability ratios reflect a concerning trend of declining profitability and efficiency in generating returns for both assets and capital employed, which may raise concerns among investors and stakeholders.