Ryder System Inc (R)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 87.68% | 87.21% | 87.64% | 88.78% | 88.80% |
| Operating profit margin | 75.15% | 74.23% | 75.55% | 76.10% | 75.84% |
| Pretax margin | 5.23% | 5.24% | 10.16% | 7.14% | -1.66% |
| Net profit margin | 3.87% | 3.45% | 7.22% | 5.37% | -1.45% |
Based on the provided data, we can observe the following trends in Ryder System Inc's profitability ratios:
1. Gross Profit Margin:
- The gross profit margin has remained relatively stable over the years, ranging from 87.21% to 88.80%.
- This indicates that the company is effectively managing its production costs and generating a high percentage of revenue after accounting for direct expenses.
2. Operating Profit Margin:
- The operating profit margin fluctuated slightly over the years, with the highest value at 76.10% in 2021 and the lowest at 74.23% in 2023.
- Despite the fluctuations, the company has maintained a high level of efficiency in generating profits from its core business operations.
3. Pre-tax Margin:
- The pre-tax margin improved significantly from -1.66% in 2020 to 10.16% in 2022, showing a strong recovery and profitability growth.
- However, there was a slight decline in 2024 to 5.23%, indicating a potential need for cost management and efficiency improvements.
4. Net Profit Margin:
- The net profit margin also experienced a positive trend, increasing from -1.45% in 2020 to 7.22% in 2022.
- Despite a slight decrease to 3.87% in 2024, the company has shown a consistent ability to convert revenue into profit after accounting for all expenses.
In conclusion, Ryder System Inc has demonstrated strong profitability metrics in terms of gross profit margin, operating profit margin, pre-tax margin, and net profit margin over the years, indicating efficient cost management and effective revenue generation. However, the company may need to focus on sustaining or improving margins to ensure long-term profitability and growth.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 56.96% | 55.44% | 63.04% | 53.15% | 49.38% |
| Return on assets (ROA) | 2.93% | 2.57% | 6.02% | 3.75% | -0.94% |
| Return on total capital | 33.59% | 29.78% | 49.30% | 32.31% | 5.36% |
| Return on equity (ROE) | 15.69% | 13.23% | 29.52% | 18.55% | -5.41% |
Based on the provided data, let's analyze the profitability ratios of Ryder System Inc:
1. Operating Return on Assets (Operating ROA):
- The Operating ROA shows Ryder System Inc's operating income generated per dollar of assets. It has been consistently improving over the years, from 49.38% in 2020 to 56.96% in 2024. This indicates that the company has been able to generate more operating income from its assets over time.
2. Return on Assets (ROA):
- The ROA measures Ryder System Inc's overall profitability relative to its total assets. While starting in negative territory in 2020, the ROA has shown a positive trend, increasing from 3.75% in 2021 to 2.93% in 2024. This indicates that the company has been able to generate more profit from its assets as compared to the previous years.
3. Return on Total Capital:
- The Return on Total Capital ratio reflects the overall return generated by Ryder System Inc on all its invested capital. This ratio has shown fluctuations but generally increasing from 5.36% in 2020 to 33.59% in 2024. This suggests that the company has been effective in generating returns on the total capital employed in its operations.
4. Return on Equity (ROE):
- The ROE measures Ryder System Inc's profitability from the perspective of its shareholders. The ROE has shown a positive trend, increasing from 18.55% in 2021 to 15.69% in 2024. This suggests that the company has been able to generate higher returns for its shareholders over the years.
In conclusion, Ryder System Inc has shown improvements in its profitability ratios over the years, indicating the company's effective utilization of assets, capital, and equity to generate income and returns for its stakeholders.