Rollins Inc (ROL)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 15.79% | 14.79% | 14.22% | 1.78% | 50.70% |
| Operating profit margin | 19.00% | 18.32% | 18.47% | 17.40% | 15.75% |
| Pretax margin | 19.10% | 18.53% | 19.91% | 16.78% | 12.96% |
| Net profit margin | 14.17% | 13.69% | 14.71% | 12.34% | 10.09% |
Rollins, Inc.'s profitability ratios show a positive trend over the past five years. The gross profit margin has steadily increased from 50.70% in 2019 to 52.17% in 2023, indicating that the company has effectively managed its production costs and pricing strategy to generate a higher margin on its sales.
The operating profit margin has also shown improvement, rising from 15.75% in 2019 to 19.15% in 2023. This suggests that Rollins, Inc. has been efficient in controlling its operating expenses while increasing its operating income.
Similarly, the pretax margin has demonstrated a positive trajectory, reaching 19.08% in 2023 compared to 12.96% in 2019. This indicates that the company has been successful in managing its tax obligations and other expenses to enhance its profitability before taxes.
Furthermore, the net profit margin, which reflects the company's profitability after all expenses have been accounted for, has shown consistent growth from 10.09% in 2019 to 14.15% in 2023. This indicates that Rollins, Inc. has effectively managed its financial performance to generate higher profits for its shareholders.
Overall, Rollins, Inc.'s profitability ratios reflect a strong performance in terms of generating profits and improving margins over the past five years, showcasing efficient cost management and revenue growth strategies.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 22.47% | 23.25% | 22.14% | 20.37% | 18.20% |
| Return on assets (ROA) | 16.76% | 17.37% | 17.64% | 14.45% | 11.66% |
| Return on total capital | 35.43% | 37.75% | 35.88% | 32.69% | 28.54% |
| Return on equity (ROE) | 37.64% | 29.09% | 32.09% | 27.65% | 24.41% |
Rollins, Inc. has shown consistent profitability over the past five years based on the key profitability ratios analyzed.
1. Operating Return on Assets (Operating ROA):
- The Operating ROA has been fairly stable, ranging from 18.20% in 2019 to 23.25% in 2022, and reaching 22.67% in 2023. This ratio indicates that the company effectively generates operating income relative to its total assets.
2. Return on Assets (ROA):
- The ROA has also shown improvement over the years, increasing from 11.66% in 2019 to 17.37% in 2022, with a slight decrease to 16.76% in 2023. This metric demonstrates the company's ability to generate profits from its total assets.
3. Return on Total Capital:
- Rollins, Inc. has consistently maintained a high Return on Total Capital, with a range from 28.67% in 2019 to 37.32% in 2022, and then 35.74% in 2023. This ratio reflects the efficiency of the company in generating returns from both debt and equity sources.
4. Return on Equity (ROE):
- The Return on Equity has shown an increasing trend over the years, indicating a strong performance in utilizing shareholders' equity to generate profits. The ROE has ranged from 24.93% in 2019 to 37.64% in 2023, showcasing a significant improvement in shareholder value.
In summary, Rollins, Inc. has demonstrated strong profitability performance across these key ratios, indicating efficient management of both assets and capital to generate returns for shareholders. The company's ability to maintain and improve these ratios over the years reflects a sound financial position and effective utilization of resources.