MYR Group Inc (MYRG)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 8.63% | 10.00% | 11.43% | 13.01% | 12.27% |
| Operating profit margin | 1.61% | 3.54% | 3.82% | 4.75% | 3.85% |
| Pretax margin | 1.38% | 3.43% | 3.80% | 4.66% | 3.62% |
| Net profit margin | 0.90% | 2.50% | 2.77% | 3.40% | 2.61% |
MYR Group Inc's profitability ratios show a downward trend over the years, indicating a potential decrease in overall profitability.
- Gross profit margin has declined from 12.27% in 2020 to 8.63% in 2024, reflecting a shrinking percentage of total revenue retained after accounting for cost of goods sold.
- Operating profit margin decreased from 3.85% in 2020 to 1.61% in 2024, signaling a decline in the efficiency of generating profits from operations.
- Pretax margin dropped from 3.62% in 2020 to 1.38% in 2024, suggesting lower profitability before accounting for taxes.
- Net profit margin decreased from 2.61% in 2020 to 0.90% in 2024, indicating a reduced percentage of net income relative to total revenue.
Overall, the declining trend in profitability ratios raises concerns about MYR Group Inc's ability to maintain profitability levels and generate sufficient returns for its stakeholders 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) | 3.44% | 8.18% | 8.21% | 10.58% | 8.69% |
| Return on assets (ROA) | 1.92% | 5.76% | 5.96% | 7.58% | 5.90% |
| Return on total capital | 8.83% | 19.95% | 20.09% | 22.24% | 19.50% |
| Return on equity (ROE) | 5.04% | 13.97% | 14.88% | 16.38% | 13.69% |
MYR Group Inc's profitability ratios show a somewhat fluctuating trend over the period from December 31, 2020, to December 31, 2024.
1. Operating return on assets (Operating ROA) increased from 8.69% in 2020 to 10.58% in 2021, indicating improved operational efficiency. However, it declined to 8.21% in 2022 and further to 8.18% in 2023, before experiencing a significant drop to 3.44% in 2024. This decline in operating ROA suggests challenges in generating operating income relative to its assets in the most recent year.
2. Return on assets (ROA) followed a similar trend, rising from 5.90% in 2020 to 7.58% in 2021. However, it declined to 5.96% in 2022 and 5.76% in 2023, before dropping to 1.92% in 2024. This decrease in ROA indicates a decline in the overall profitability of MYR Group Inc relative to its total assets, signaling potential inefficiencies or reduced earnings generation.
3. Return on total capital peaked at 22.24% in 2021, showing strong returns on the total invested capital. However, it decreased to 20.09% in 2022, 19.95% in 2023, and then sharply to 8.83% in 2024. This decline in return on total capital reflects a reduced financial performance concerning the total capital investment, indicating a lower return to the company's providers of capital.
4. Return on equity (ROE) displayed a similar trend, increasing from 13.69% in 2020 to 16.38% in 2021. However, it dropped to 14.88% in 2022, 13.97% in 2023, and further decreased to 5.04% in 2024. The declining ROE indicates a decreasing ability of MYR Group Inc to generate profits from its shareholders' equity, reflecting potential challenges in maximizing shareholder value.
In conclusion, MYR Group Inc's profitability ratios show a mixed performance over the years, with signs of improvement followed by declines in recent periods. It is essential for the company to focus on improving operational efficiency, optimizing asset utilization, and enhancing overall profitability to sustain its financial performance and ensure value creation for its stakeholders.