Stanley Black & Decker Inc (SWK)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | -3.86% | 25.28% | 33.32% | 34.55% | 37.21% |
| Operating profit margin | -32.96% | -0.92% | 6.75% | 17.07% | 15.44% |
| Pretax margin | -2.56% | 5.49% | 11.41% | 9.97% | 8.38% |
| Net profit margin | -1.97% | 6.27% | 11.05% | 9.68% | 7.40% |
The profitability ratios of Stanley Black & Decker Inc have experienced fluctuations over the past five years. The gross profit margin has declined significantly to -3.86% in 2023 from highs of 37.21% in 2019. This suggests that the company's cost of goods sold has increased relative to its sales revenue.
The operating profit margin also deteriorated, reaching -32.96% in 2023 compared to positive figures in the previous years. This indicates that the company has been experiencing significant operating losses, possibly due to high operating expenses and/or declining revenue.
Similarly, the pretax margin declined to -2.56% in 2023 from 11.41% in 2021, indicating a decreasing trend in profitability before accounting for taxes. This could be a result of challenges in generating income to cover fixed costs and interest expenses.
The net profit margin showed a negative trend as well, falling to -1.97% in 2023 from highs of 11.05% in 2021. This suggests that the company's bottom-line profitability has worsened, with net income decreasing in relation to total revenue.
Overall, these declining profitability ratios indicate that Stanley Black & Decker Inc may be facing challenges in maintaining and growing its profitability, potentially due to changes in the business environment, cost pressures, or other internal factors. Further analysis of the company's financial statements and operational performance may be necessary to determine the underlying causes and potential strategies for improvement.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -21.98% | -0.63% | 3.66% | 9.23% | 9.68% |
| Return on assets (ROA) | -1.31% | 4.26% | 5.99% | 5.24% | 4.64% |
| Return on total capital | 1.02% | 8.42% | 12.10% | 9.76% | 11.08% |
| Return on equity (ROE) | -3.43% | 10.94% | 14.57% | 11.16% | 10.46% |
The profitability ratios of Stanley Black & Decker Inc indicate fluctuations in the company's performance over the past five years. Operating return on assets (Operating ROA) has shown a significant decline from 9.68% in 2019 to -21.98% in 2023, indicating a recent downturn in the company's ability to generate operating income from its assets.
Return on assets (ROA) also reflects a downward trend from 4.64% in 2019 to -1.31% in 2023, indicating a decrease in the company's profitability relative to its total assets. However, the return on total capital has fluctuated over the years, with a low of 1.02% in 2023 and a high of 12.10% in 2021, suggesting that the company's return on invested capital has been inconsistent.
Return on equity (ROE) has shown a similar pattern to ROA, with a decrease from 10.46% in 2019 to -3.43% in 2023, indicating a decrease in the company's ability to generate profits from shareholders' equity. Overall, the profitability ratios of Stanley Black & Decker Inc demonstrate a mixed performance in recent years, with a need for the company to address the decline in profitability metrics and improve its efficiency in utilizing assets and capital to generate returns for its investors.