Republic Services Inc (RSG)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 41.68% | 40.24% | 39.28% | 40.35% | 39.92% |
| Operating profit margin | 19.94% | 18.58% | 17.70% | 18.38% | 16.83% |
| Pretax margin | 15.17% | 14.64% | 13.56% | 13.95% | 11.25% |
| Net profit margin | 12.74% | 11.57% | 11.01% | 11.42% | 9.53% |
Republic Services Inc demonstrates overall improvement in its profitability ratios over the past five years.
Starting with the gross profit margin, the company has shown a consistent increase from 39.92% in 2020 to 41.68% in 2024, indicating an efficient management of production costs and pricing strategies leading to higher profitability at the gross level.
Moving on to the operating profit margin, Republic Services Inc has also made significant progress, with margins expanding from 16.83% in 2020 to 19.94% in 2024. This indicates effective control over operating expenses and improved operational efficiency.
The pretax margin has also shown a positive trend, increasing from 11.25% in 2020 to 15.17% in 2024. This implies that the company has been successful in managing its operating costs, interest expenses, and other non-operating items effectively, resulting in higher profitability before taxes.
Lastly, the net profit margin, which reflects the company's bottom-line profitability, has experienced steady growth, climbing from 9.53% in 2020 to 12.74% in 2024. This suggests that Republic Services Inc has been able to convert a higher percentage of its revenue into net income, indicating strong overall financial performance.
Overall, Republic Services Inc's profitability ratios have shown consistent improvement over the years, reflecting the company's ability to effectively manage costs and generate higher profits.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.86% | 8.85% | 8.23% | 8.32% | 7.29% |
| Return on assets (ROA) | 6.31% | 5.51% | 5.12% | 5.17% | 4.13% |
| Return on total capital | 26.05% | 25.81% | 22.90% | 23.57% | 21.70% |
| Return on equity (ROE) | 17.91% | 16.42% | 15.36% | 14.37% | 11.40% |
Republic Services Inc has demonstrated a positive trend in its profitability ratios over the years.
- Operating return on assets (Operating ROA) has shown consistent improvement from 7.29% in December 2020 to 9.86% in December 2024. This indicates that the company's operating activities are becoming more efficient in generating profits relative to its assets.
- Return on assets (ROA) has also exhibited a steady increase from 4.13% in December 2020 to 6.31% in December 2024, reflecting the company's ability to generate profits from its total assets.
- Return on total capital has shown an upward trend, rising from 21.70% in December 2020 to 26.05% in December 2024. This indicates that the company is effectively utilizing its total capital to generate returns for its stakeholders.
- Return on equity (ROE) has progressively improved from 11.40% in December 2020 to 17.91% in December 2024, showcasing the company's ability to generate returns for its equity shareholders.
Overall, these profitability ratios suggest that Republic Services Inc has been successfully improving its operational efficiency and generating higher returns for its investors over the analyzed period.