ODP Corp (ODP)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 22.61% | 21.80% | 22.08% | 20.20% | 21.35% |
| Operating profit margin | 2.57% | 2.87% | 2.77% | 0.06% | 2.12% |
| Pretax margin | 2.56% | 2.71% | -1.94% | -3.04% | 1.42% |
| Net profit margin | 1.78% | 1.96% | -2.46% | -3.30% | 0.94% |
ODP Corp's profitability ratios indicate fluctuations in profitability over the past five years. The gross profit margin has shown some variability, ranging from 20.20% in 2020 to 22.61% in 2023, with an average of 21.41% over the period. This indicates the company's ability to control direct costs of sales.
The operating profit margin has also fluctuated, ranging from 0.06% in 2020 to 2.87% in 2022, with an average of 2.08% over the period. This metric reflects ODP Corp's ability to generate profits from its core business operations after accounting for operating expenses.
The pretax margin has shown significant variability, with negative margins in 2021 and 2020, indicating losses before taxes during those years. However, there was an improvement in 2023, with a pretax margin of 2.56%, signifying a positive shift in profitability before accounting for taxes.
The net profit margin has also exhibited fluctuations, with negative margins in 2021 and 2020, and the highest margin of 1.96% in 2022. The average net profit margin over the period was 0.94%. This metric reflects ODP Corp's bottom-line profitability after accounting for all expenses, including taxes.
Overall, while there have been fluctuations in profitability ratios over the years, it is crucial for ODP Corp to focus on sustaining and improving its profitability margins to ensure long-term financial health and sustainability.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.17% | 5.86% | 4.81% | 0.11% | 3.06% |
| Return on assets (ROA) | 3.58% | 4.00% | -4.28% | -5.68% | 1.35% |
| Return on total capital | 19.98% | 19.10% | -9.44% | -13.36% | 11.00% |
| Return on equity (ROE) | 12.62% | 12.90% | -14.46% | -16.97% | 4.56% |
The profitability ratios of ODP Corp over the past five years show mixed performance.
1. Operating return on assets (Operating ROA) has fluctuated, with a peak in 2022 at 5.86% and a subsequent decrease to 5.17% in 2023. This ratio indicates the company's ability to generate operating income from its assets.
2. Return on assets (ROA) shows a more erratic pattern, with negative values in 2021 and 2020. The negative values indicate that the company faced challenges in generating profits from its total assets during these years.
3. Return on total capital saw significant improvement in 2023, reaching 19.98%, compared to negative values in 2021 and 2020. This ratio reflects the company's efficiency in generating returns from both equity and debt capital invested in the business.
4. Return on equity (ROE) has also shown volatility, with negative values in 2021 and 2020. The positive ROE in 2023 at 12.62% indicates an improvement in the company's ability to generate profits from shareholders' equity.
Overall, ODP Corp's profitability ratios demonstrate varying levels of performance over the past five years, reflecting changes in the company's ability to generate profits relative to its assets, capital, and equity.