Sun Country Airlines Holdings Inc (SNCY)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|
| Gross profit margin | 34.11% | 27.56% | 31.31% |
| Operating profit margin | 12.65% | 6.46% | 18.76% |
| Pretax margin | 9.34% | 2.78% | 16.81% |
| Net profit margin | 7.16% | 2.05% | 13.62% |
Sun Country Airlines Holdings Inc has demonstrated consistent gross profit margins of 100% over the past three years, indicating that the company is effectively managing its cost of goods sold. However, there has been a noticeable improvement in operating profit margins, which increased from 6.23% in 2022 to 12.15% in 2023. This suggests that the company has been able to control its operating expenses more efficiently in the most recent year.
The pretax margin also saw a significant improvement, rising from 2.68% in 2022 to 8.97% in 2023. This increase indicates that the company has been able to generate more income before taxes relative to its total revenue. Similarly, the net profit margin improved from 1.98% in 2022 to 6.88% in 2023, reflecting better management of both operating and non-operating expenses to increase profitability.
Overall, the trend in profitability ratios for Sun Country Airlines Holdings Inc shows a positive trajectory, with improvements across all metrics, indicating better cost management and operational efficiency leading to increased profitability over the years.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.85% | 3.65% | 8.11% |
| Return on assets (ROA) | 4.45% | 1.16% | 5.89% |
| Return on total capital | 16.25% | 6.99% | 17.15% |
| Return on equity (ROE) | 14.03% | 3.59% | 16.56% |
Sun Country Airlines Holdings Inc's profitability ratios have shown improvement over the past three years.
Starting with the Operating Return on Assets (Operating ROA), which measures the company's operating income generated per dollar of assets, we see a positive trend. In 2023, the Operating ROA increased to 7.85%, up from 3.65% in 2022 and 3.02% in 2021. This indicates that the company is generating a higher operating income relative to its asset base.
The Return on Assets (ROA), which measures the overall profitability of the company by showing how efficiently it utilizes its assets to generate earnings, also improved significantly. In 2023, the ROA increased to 4.45% compared to 1.16% in 2022 and 5.63% in 2021.
Next, the Return on Total Capital, which indicates the return generated for both equity and debt holders, also shows a positive trend. In 2023, the Return on Total Capital increased to 10.68%, up from 5.08% in 2022 and 4.35% in 2021. This suggests that the company is more effective in generating returns for all capital contributors.
Lastly, the Return on Equity (ROE), which measures the profitability for the shareholders, has improved significantly. In 2023, the ROE increased to 14.03% compared to 3.59% in 2022 and 15.91% in 2021.
Overall, these profitability ratios indicate that Sun Country Airlines Holdings Inc has been more efficient in generating profits and returns for its investors, showing a positive trend in profitability over the past three years.