Skechers USA Inc (SKX)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 53.15% | 51.90% | 47.22% | 49.31% | 47.63% |
| Operating profit margin | 10.08% | 9.81% | 5.28% | 7.30% | 0.61% |
| Pretax margin | 9.79% | 10.01% | 7.02% | 9.07% | 3.37% |
| Net profit margin | 7.13% | 6.82% | 5.01% | 11.80% | 3.18% |
Skechers USA Inc's profitability ratios have shown an overall improvement over the years.
1. Gross Profit Margin: Skechers' gross profit margin has been increasing consistently from 47.63% in 2020 to 53.15% in 2024. This indicates that the company has been able to effectively control its cost of goods sold and improve efficiency in its production process.
2. Operating Profit Margin: The operating profit margin of Skechers has also shown a positive trend, increasing from 0.61% in 2020 to 10.08% in 2024. This suggests that the company has been able to manage its operating expenses more efficiently and generate higher profits from its core business operations.
3. Pretax Margin: Skechers' pretax margin has exhibited a similar upward trajectory, rising from 3.37% in 2020 to 9.79% in 2024. This indicates that the company has been able to enhance its overall profitability before considering the impact of taxes through effective cost management and revenue growth strategies.
4. Net Profit Margin: The net profit margin of Skechers has improved steadily from 3.18% in 2020 to 7.13% in 2024. This suggests that the company has been able to generate higher bottom-line profits relative to its total revenue, reflecting its ability to manage expenses and boost net income.
Overall, the trend in Skechers' profitability ratios indicates a positive performance with increasing margins over the years, showcasing the company's improving operational efficiency and financial health.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 10.69% | 10.40% | 5.70% | 7.07% | 0.49% |
| Return on assets (ROA) | 7.56% | 7.23% | 5.41% | 11.42% | 2.52% |
| Return on total capital | 0.00% | 19.57% | 15.31% | 18.35% | 5.39% |
| Return on equity (ROE) | 13.52% | 13.58% | 10.45% | 22.75% | 5.89% |
Skechers USA Inc's profitability ratios have exhibited fluctuating trends over the years based on the provided data.
1. Operating return on assets (Operating ROA) shows the company's ability to generate profit from its operations relative to its assets. The ratio has seen significant improvement, increasing from 0.49% in 2020 to 10.69% in 2024. This indicates that Skechers has become more efficient in utilizing its assets to generate operating income over the years.
2. Return on assets (ROA) measures the overall profitability of the company in relation to its total assets. The ROA has shown variability, reaching its peak at 11.42% in 2021 but fluctuating between 5.41% and 7.56% in the following years. This suggests that the company's ability to generate profit from its assets has been mixed over the period.
3. Return on total capital reflects the company's ability to earn a return on all the capital invested in the business. The return on total capital was at its highest in 2021 at 18.35%, declining in subsequent years, and reaching 0.00% in 2024. This decline indicates that Skechers may not be efficiently utilizing all the capital invested in the business to generate returns.
4. Return on equity (ROE) measures the profitability of the company from the perspective of its shareholders. Skechers has shown improvement in ROE from 5.89% in 2020 to 13.52% in 2024. Although there have been fluctuations, the overall trend indicates that the company's profitability in relation to shareholders' equity has improved over the years.
In conclusion, while Skechers USA Inc has demonstrated improvement in certain profitability ratios such as Operating ROA and ROE, there are fluctuations in other ratios like ROA and Return on total capital. It is crucial for the company to continue monitoring and improving these ratios to ensure sustained profitability and efficient use of resources.