MasTec Inc (MTZ)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 13.23% | 6.56% | 12.19% | 14.41% | 16.61% |
| Operating profit margin | 3.55% | 1.27% | 1.59% | 6.08% | 7.76% |
| Pretax margin | 2.04% | -0.69% | 0.44% | 5.41% | 6.73% |
| Net profit margin | 1.32% | -0.42% | 0.34% | 4.14% | 5.11% |
MasTec Inc's profitability ratios have exhibited some fluctuations over the years. The gross profit margin, which indicates the proportion of revenue remaining after deducting the cost of goods sold, has shown a declining trend from 16.61% in December 2020 to 13.23% in December 2024, with a notable drop to 6.56% in December 2023.
Similarly, the operating profit margin, reflecting the company's operating efficiency, decreased from 7.76% in December 2020 to 3.55% in December 2024. The pretax margin, indicating the company's profitability before taxes, experienced a significant decline from 6.73% in December 2020 to 0.44% in December 2022, before showing some recovery to 2.04% in December 2024.
The net profit margin, representing the company's bottom-line profitability, also followed a downward trend from 5.11% in December 2020 to 1.32% in December 2024, with a negative margin of -0.42% in December 2023.
These results suggest that MasTec Inc's profitability has faced challenges in recent years, with decreasing margins indicating potential issues with cost management and overall efficiency. Further analysis of the company's cost structure and revenue generation strategies may be necessary to address these declining profitability trends and enhance financial performance in the future.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.86% | 1.62% | 1.67% | 6.79% | 9.38% |
| Return on assets (ROA) | 1.81% | -0.53% | 0.36% | 4.62% | 6.18% |
| Return on total capital | 15.26% | 5.61% | 5.67% | 19.01% | 36,429.75% |
| Return on equity (ROE) | 5.59% | -1.85% | 1.22% | 12.93% | 16.10% |
MasTec Inc's profitability ratios show fluctuations over the years:
1. Operating return on assets (Operating ROA) decreased from 9.38% in 2020 to 1.62% in 2023 before slightly improving to 4.86% in 2024. This indicates a decline in the company's ability to generate operating profit from its assets, followed by a partial recovery.
2. Return on assets (ROA) followed a similar trend, declining from 6.18% in 2020 to -0.53% in 2023, signifying a period of unprofitability, and then recovering to 1.81% in 2024. This metric reflects the company's overall profitability relative to its total assets.
3. Return on total capital decreased significantly from 36,429.75% in 2020 to 5.61% in 2023 and then improved to 15.26% in 2024. This ratio reveals MasTec's efficiency in generating returns from both debt and equity investments.
4. Return on equity (ROE) declined from 16.10% in 2020 to -1.85% in 2023, indicating a decrease in the returns to its shareholders. However, the metric improved to 5.59% in 2024, albeit still below the 2020 level.
Overall, MasTec Inc's profitability ratios show a mixed performance trajectory, with challenges in generating returns in certain years but with some signs of recovery in later periods. Monitoring these ratios will be crucial for evaluating the company's profitability and financial health in the coming years.