Stericycle Inc (SRCL)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 39.15% | 37.73% | 38.43% | 41.33% | 36.98% |
| Operating profit margin | 2.98% | 5.65% | 2.73% | 1.25% | -6.67% |
| Pretax margin | 0.12% | 2.88% | -0.01% | -2.25% | -11.45% |
| Net profit margin | -0.83% | 2.06% | -1.05% | -2.25% | -10.92% |
Stericycle Inc.'s profitability ratios have exhibited some fluctuation over the past five years. The gross profit margin has remained relatively stable, ranging from 35.50% to 39.36%, indicating the company's ability to effectively manage its production costs and generate profits from its core operations.
The operating profit margin shows some variability, with the highest value in 2020 at 5.81% and the lowest in 2021 at 2.67%. This metric reflects the company's efficiency in managing its operating expenses in relation to its revenue.
The pretax margin has shown significant fluctuations, ranging from a negative value of -10.96% in 2019 to a positive value of 2.92% in 2022. This ratio indicates the company's ability to generate profits before accounting for taxes and other financial expenses.
The net profit margin has also been volatile, with negative values seen in 2019, 2021, and 2023. This metric reflects the company's overall profitability after accounting for all expenses, including taxes.
Overall, Stericycle Inc.'s profitability ratios demonstrate a mix of stability and variability, indicating the company's ability to generate profits from its core operations but also highlighting some challenges in managing expenses and achieving consistent profitability levels.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 1.44% | 2.88% | 1.32% | 0.57% | -3.29% |
| Return on assets (ROA) | -0.40% | 1.05% | -0.51% | -1.03% | -5.39% |
| Return on total capital | 2.02% | 4.02% | 1.79% | 0.74% | -4.19% |
| Return on equity (ROE) | -0.85% | 2.31% | -1.16% | -2.36% | -14.88% |
The profitability ratios of Stericycle Inc. over the past five years reflect mixed performance in generating returns for its stakeholders.
1. Operating Return on Assets (Operating ROA): This ratio measures the company's operating efficiency in utilizing its assets to generate profits before interest and taxes. Stericycle's Operating ROA has shown a relatively stable trend, improving from 1.85% in 2019 to 2.63% in 2023. This indicates that the company has been able to generate increasing operating profits for every dollar of assets employed.
2. Return on Assets (ROA): ROA indicates the company's ability to generate profits from its total assets. Stericycle's ROA has been fluctuating, with negative returns in 2020 and 2021, and a significant downturn in 2019. The negative ROA values may suggest that the company's assets are not efficiently utilized to generate profits. However, the slight recovery to -0.40% in 2023 shows indications of improvement.
3. Return on Total Capital: This ratio measures the returns generated on both equity and debt capital invested in the company. Stericycle's Return on Total Capital has generally shown an upward trend, increasing from 2.39% in 2019 to 3.68% in 2023. This indicates that the company is generating higher returns on the total capital employed, including both equity and debt, signaling improved financial performance.
4. Return on Equity (ROE): ROE reflects the returns generated for the equity shareholders. Stericycle's ROE has been inconsistent over the years, with negative returns in 2019, 2020, and 2021 but turning positive in 2022 and then back to negative in 2023. The negative ROE values suggest that the company has struggled to generate profits for its equity shareholders in certain years.
Overall, while Stericycle has shown improvement in some profitability ratios like Operating ROA and Return on Total Capital, the negative values in ROA and ROE indicate potential inefficiencies in asset utilization and value creation for equity shareholders. It may be important for the company to focus on optimizing its asset utilization and generating sustainable profits to enhance overall profitability in the future.