Republic Services Inc (RSG)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 37.01% | 36.62% | 38.84% | 38.94% | 37.99% |
| Operating profit margin | 16.09% | 15.29% | 15.58% | 14.20% | 14.66% |
| Pretax margin | 12.68% | 11.71% | 11.81% | 9.48% | 10.62% |
| Net profit margin | 10.02% | 9.51% | 9.69% | 8.04% | 8.80% |
The profitability ratios of Republic Services, Inc. have shown a generally positive trend over the past five years.
The gross profit margin has been consistently above 38% and has slightly improved year over year, reaching 40.24% in 2023. This indicates that the company is efficiently managing its production costs and generating a healthy gross profit from its operations.
The operating profit margin, which measures the company's ability to control its operating expenses, has also shown improvement, increasing from 16.26% in 2019 to 18.18% in 2023. This suggests that Republic Services, Inc. has been able to effectively manage its operating costs and improve operational efficiency.
The pretax margin, reflecting the company's profitability before taxes, has fluctuated over the years but has shown an overall increasing trend. In 2023, the pretax margin was 14.64%, indicating that the company is generating more profit before tax expenses compared to previous years.
The net profit margin, which measures the company's profitability after all expenses, including taxes, has also shown improvement over the years, reaching 11.57% in 2023. This indicates that Republic Services, Inc. is effectively controlling its overall expenses and generating a healthy net profit relative to its revenue.
Overall, Republic Services, Inc. has demonstrated improving profitability ratios over the past five years, reflecting efficient cost management and sustained profitability in its operations.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.85% | 8.23% | 8.32% | 7.29% | 7.88% |
| Return on assets (ROA) | 5.51% | 5.12% | 5.17% | 4.13% | 4.73% |
| Return on total capital | 25.60% | 22.99% | 21.02% | 17.63% | 20.78% |
| Return on equity (ROE) | 16.42% | 15.36% | 14.37% | 11.40% | 13.22% |
Republic Services, Inc. has shown consistent profitability over the past five years based on various financial ratios. Starting with Operating return on assets (Operating ROA), the company's performance has been improving, with the ratio increasing from 7.38% in 2019 to 8.66% in 2023. This indicates that the company has been effectively generating operating profits from its assets.
In terms of Return on assets (ROA), Republic Services, Inc. has also demonstrated steady growth, with the ratio increasing from 4.73% in 2019 to 5.51% in 2023. This indicates the company's ability to generate profits from its total assets.
Return on total capital has also seen a positive trend, indicating that Republic Services, Inc. has been efficient in generating returns on its total invested capital. The ratio has increased from 9.96% in 2019 to 11.64% in 2023, showcasing improved performance in this area.
Lastly, Return on equity (ROE) has consistently increased from 13.22% in 2019 to 16.42% in 2023, indicating that the company has been successful in generating returns for its shareholders.
Overall, Republic Services, Inc. has exhibited strong profitability ratios over the past five years, indicating efficient operations and effective utilization of assets and capital to generate profits for both the company and its shareholders.