ODP Corp (ODP)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 20.67% | 22.49% | 21.76% | 22.01% | 21.96% |
| Operating profit margin | 2.33% | 3.81% | 2.86% | 3.90% | 3.20% |
| Pretax margin | 2.09% | 2.55% | 2.85% | 2.73% | -3.04% |
| Net profit margin | -0.04% | 1.77% | 1.96% | 2.21% | -3.29% |
ODP Corp's gross profit margin has shown some fluctuations over the five-year period, ranging from a low of 20.67% on December 31, 2024, to a high of 22.49% on December 31, 2023. However, overall, the company has maintained a relatively stable gross profit margin, with the latest figure standing at 21.76% on December 31, 2022.
In terms of operating profit margin, ODP Corp experienced variability in profitability, with the highest margin of 3.90% on December 31, 2021, and the lowest at 2.33% on December 31, 2024. While there were some fluctuations, the company's operating profit margin has displayed a downward trend from 2021 to 2024.
The pretax margin of ODP Corp also varied during the period under review, with negative figures recorded in 2020, but turning positive in subsequent years. The pretax margin ranged from -3.04% on December 31, 2020, to 2.85% on December 31, 2022. The latest figure for December 31, 2024, stands at 2.09%.
Furthermore, ODP Corp's net profit margin experienced fluctuations, including negative margins in 2020 and 2024. The highest net profit margin was 2.21% on December 31, 2021, whereas the lowest was -0.04% on December 31, 2024. Overall, the company's net profit margin has shown a decreasing trend from 2021 to 2024.
In conclusion, ODP Corp's profitability ratios indicate some variability in performance over the five-year period, with fluctuations in gross, operating, pretax, and net profit margins. It is essential for the company to closely monitor and manage its profitability to ensure sustainable growth and financial stability 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) | 4.62% | 7.67% | 5.86% | 6.78% | 5.60% |
| Return on assets (ROA) | -0.09% | 3.58% | 4.00% | 3.84% | -5.74% |
| Return on total capital | 20.94% | 19.98% | 20.05% | 18.01% | 0.21% |
| Return on equity (ROE) | -0.37% | 12.62% | 12.90% | 13.00% | -16.97% |
Based on the provided data for ODP Corp, the profitability ratios reflect fluctuating performance over the years:
1. Operating Return on Assets (Operating ROA) experienced an increase from 2020 (5.60%) to 2023 (7.67%) before dropping slightly in 2024 (4.62%). This ratio measures the operating income generated per dollar of assets.
2. Return on Assets (ROA) had a negative value in 2020 (-5.74%), indicating a loss, but improved gradually in the following years, with a positive but low return in 2024 (0.09%). ROA indicates the company's ability to generate profit from its assets.
3. Return on Total Capital showed significant growth, with increments from 18.01% in 2021 to 20.94% in 2024. This ratio evaluates the overall return earned on all sources of capital invested in the company.
4. Return on Equity (ROE) was negative in 2020 (-16.97%) and 2024 (-0.37%), with positive returns in the intervening years. ROE demonstrates the return earned on shareholders' equity investment in the company.
In conclusion, ODP Corp's profitability ratios exhibit mixed performance trends, with improvements in some ratios over the years while others show volatility or declining values. Investors and stakeholders should consider these ratios collectively to assess the company's overall profitability and financial health.