Stanley Black & Decker Inc (SWK)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 29.38% | 25.97% | 25.28% | 33.26% | 34.18% |
| Operating profit margin | 7.69% | 3.93% | 5.65% | 11.63% | 10.13% |
| Pretax margin | 1.57% | -2.38% | 0.22% | 10.51% | 8.72% |
| Net profit margin | 1.92% | -1.97% | 1.00% | 10.82% | 8.49% |
Stanley Black & Decker Inc's profitability ratios indicate fluctuations in the company's ability to generate earnings over the years.
1. Gross Profit Margin:
- The gross profit margin declined from 34.18% in 2020 to 25.28% in 2022 but showed a slight improvement to 29.38% in 2024. The declining trend between 2020 and 2022 may suggest challenges in managing direct costs efficiently, but the improvement in 2024 is a positive sign.
2. Operating Profit Margin:
- The operating profit margin increased from 10.13% in 2020 to 11.63% in 2021, before dropping to 5.65% in 2022. There was a recovery observed in 2024 with a margin of 7.69%. The fluctuation in the operating profit margin indicates varying levels of operational efficiency and cost management.
3. Pretax Margin:
- The pretax margin also exhibited fluctuations, starting at 8.72% in 2020, reaching a peak of 10.51% in 2021, and then dropping significantly to 0.22% in 2022. The margin improved slightly in 2024 to 1.57%. The declining trend from 2021 to 2022 may signal challenges in controlling expenses.
4. Net Profit Margin:
- The net profit margin followed a similar pattern, with a drop from 8.49% in 2020 to 1.00% in 2022. The margin turned negative in 2023 at -1.97% but recovered to 1.92% in 2024. These fluctuations suggest varying levels of bottom-line profitability, possibly influenced by changes in revenue, expenses, or one-time charges.
Overall, the analysis of Stanley Black & Decker Inc's profitability ratios highlights the company's performance in managing costs, generating operating income, and ultimately delivering net profit over the years. Further investigation into the drivers behind these fluctuations could provide valuable insights into the company's financial health and operational efficiency.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.41% | 2.62% | 3.83% | 6.44% | 6.25% |
| Return on assets (ROA) | 1.35% | -1.31% | 0.68% | 5.99% | 5.24% |
| Return on total capital | 8.48% | 1.96% | 3.82% | 15.26% | 15.06% |
| Return on equity (ROE) | 3.38% | -3.43% | 1.75% | 14.57% | 11.16% |
Stanley Black & Decker Inc's profitability ratios show varying trends over the years.
- Operating return on assets (Operating ROA) increased from 6.25% in 2020 to 6.44% in 2021 but then declined to 3.83% in 2022 before further dropping to 2.62% in 2023. However, there was a recovery in 2024 to 5.41%.
- Return on assets (ROA) followed a similar pattern, starting at 5.24% in 2020, increasing to 5.99% in 2021, but then decreased significantly to 0.68% in 2022 and further deteriorated to -1.31% in 2023. It improved to 1.35% in 2024.
- Return on total capital peaked at 15.26% in 2021, gradually decreasing to 8.48% by 2024, with significant declines in 2022 and 2023 to 3.82% and 1.96%, respectively.
- Return on equity (ROE) showed a similar trend, with a high of 14.57% in 2021 but dropping to 1.75% in 2022 and further declining to -3.43% in 2023. By 2024, there was a slight recovery to 3.38%.
Overall, the company experienced fluctuations in profitability ratios, partially reflecting challenges in maintaining strong returns on assets and equity over the years. Further analysis of the company's financial performance and operational strategies is recommended to understand the underlying reasons for these fluctuations.