Skechers USA Inc (SKX)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 51.93% | 47.33% | 49.85% | 48.00% | 47.81% |
| Operating profit margin | 9.81% | 7.36% | 9.54% | 2.91% | 9.95% |
| Pretax margin | 8.71% | 6.28% | 7.91% | 2.33% | 8.35% |
| Net profit margin | 6.83% | 5.02% | 11.83% | 2.15% | 6.65% |
The profitability ratios of Skechers U S A, Inc. have shown variability over the past five years.
1. Gross Profit Margin: The gross profit margin indicates the percentage of revenue that exceeds the cost of goods sold. Skechers U S A, Inc. has generally maintained a stable gross profit margin, ranging from 47.22% to 51.90% over the period. This suggests the company has been effective in managing its production costs relative to its selling prices.
2. Operating Profit Margin: The operating profit margin measures the efficiency of a company in managing its operating expenses in relation to its revenue. Skechers U S A, Inc. showed an increasing trend in operating profit margin, with values ranging from 2.56% to 9.81%. This improvement suggests better cost management or increased revenue generation relative to operating expenses.
3. Pretax Margin: The pretax margin indicates the percentage of each dollar of revenue that translates into pre-tax profit. Skechers U S A, Inc. demonstrated variability in its pretax margin, fluctuating between 3.37% and 10.01% over the period. This variability may be influenced by factors such as changes in revenue, operating expenses, and non-operating items.
4. Net Profit Margin: The net profit margin reflects the company's profitability after all expenses, including taxes, have been deducted. Skechers U S A, Inc. experienced fluctuations in net profit margin, ranging from 2.14% to 11.80%. The significant variance in net profit margin may be attributed to factors such as changes in operating efficiency, interest expenses, and tax rates.
In summary, Skechers U S A, Inc. has shown mixed performance in terms of profitability ratios over the past five years. While the company has managed to maintain a stable gross profit margin, there have been fluctuations in operating profit margin, pretax margin, and net profit margin. Further analysis of the underlying factors contributing to these fluctuations would be essential to better understand the company's financial performance and sustainability.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 10.40% | 7.93% | 9.22% | 2.30% | 10.60% |
| Return on assets (ROA) | 7.23% | 5.41% | 11.42% | 1.70% | 7.08% |
| Return on total capital | 16.87% | 12.83% | 14.49% | 3.90% | 18.73% |
| Return on equity (ROE) | 13.58% | 10.45% | 22.75% | 3.97% | 14.97% |
Profitability ratios provide insight into a company's ability to generate profits relative to its assets and capital. In the case of Skechers U S A, Inc., the trends in profitability ratios over the past five years indicate fluctuations in the company's performance.
Operating return on assets (Operating ROA) has shown variability, ranging from 2.02% in 2020 to 10.40% in 2023. This ratio reflects the company's operational efficiency in utilizing its assets to generate operating income.
Return on assets (ROA) also exhibits fluctuation, with the highest value of 11.42% in 2021 and the lowest at 1.70% in 2020. ROA indicates the overall profitability of the company relative to its total assets.
Return on total capital has shown a similar trend, ranging from 4.16% in 2020 to 18.16% in 2023. This ratio reflects the returns generated from both debt and equity capital invested in the company.
Return on equity (ROE) has displayed fluctuating values, with the highest being 22.75% in 2021 and the lowest at 3.97% in 2020. ROE signifies the profitability of the company from the perspective of shareholders' equity.
Overall, Skechers U S A, Inc. has experienced fluctuations in profitability over the past five years, reflecting changes in operational efficiency and the company's ability to generate returns for both asset and capital providers. Investors and analysts should closely monitor these ratios to assess the company's performance and make informed investment decisions.