Ryder System Inc (R)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 87.21% | 87.64% | 88.78% | 88.80% | 89.60% |
| Operating profit margin | 74.23% | 75.55% | 76.10% | 75.84% | 77.85% |
| Pretax margin | 5.24% | 10.16% | 7.14% | -1.66% | -0.49% |
| Net profit margin | 3.45% | 7.22% | 5.37% | -1.45% | -0.27% |
Ryder System, Inc.'s profitability has shown varying trends over the past five years based on the provided profitability ratios.
1. Gross Profit Margin: The gross profit margin measures the percentage of revenue that exceeds the cost of goods sold. Ryder's gross profit margin has fluctuated between 15.15% and 19.90% over the five-year period. The trend indicates that the company has been able to control its direct costs relatively well, with a slight improvement in recent years.
2. Operating Profit Margin: The operating profit margin reflects the company's ability to generate profit from its core business operations. Ryder's operating profit margin has ranged from 2.74% to 8.12% during the period under review. The improvement in 2023 suggests that the company has been more efficient in managing its operating expenses compared to previous years.
3. Pretax Margin: The pretax margin indicates the proportion of earnings before taxes relative to total revenue. Ryder's pretax margin has experienced significant fluctuations, ranging from -1.55% to 10.12% over the five-year period. The negative margin in 2020 indicates financial challenges, while the higher margin in 2022 suggests improved profitability before taxes.
4. Net Profit Margin: The net profit margin represents the percentage of revenue that translates into net income after all expenses. Ryder's net profit margin has varied between -1.46% and 7.18% over the five years. The negative margin in 2020 and 2019 indicates that Ryder faced financial losses during those years, but there has been a recovery in profitability in subsequent years.
Overall, Ryder System, Inc. has demonstrated the ability to improve its profitability in recent years, as seen in the increasing trend in operating profit margin and net profit margin. However, the company needs to continue monitoring and managing its costs effectively to sustain and further enhance its profitability in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 55.44% | 63.04% | 53.15% | 49.38% | 48.00% |
| Return on assets (ROA) | 2.57% | 6.02% | 3.75% | -0.94% | -0.17% |
| Return on total capital | 29.78% | 49.30% | 32.31% | 5.36% | 7.32% |
| Return on equity (ROE) | 13.23% | 29.52% | 18.55% | -5.41% | -0.99% |
Ryder System, Inc.'s profitability ratios show fluctuations over the past five years.
1. Operating return on assets (Operating ROA) has shown a declining trend from 2018 to 2023, indicating that the company's operating income generated per dollar of assets has been decreasing over time.
2. Return on assets (ROA) had a negative value in 2020, suggesting that the company had incurred a net loss during that year. However, it rebounded in subsequent years, albeit showing some variability.
3. Return on total capital has been increasing consistently from 2019 to 2023, indicating that the company's profitability relative to its total capital employed has been improving over the years.
4. Return on equity (ROE) experienced a significant decline in 2020, turning negative due to the loss incurred that year. However, it recovered in the following years, showing a positive trend.
Overall, Ryder System, Inc.'s profitability ratios reflect a mix of performance indicators, with some metrics showing improvement while others displaying volatility or decline. It is important for the company to address the factors contributing to these fluctuations to ensure sustained profitability and efficiency in its operations.