Molson Coors Brewing Co Class B (TAP)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 38.99% | 37.33% | 34.16% | 39.43% | 39.03% |
| Operating profit margin | 15.08% | 12.29% | 17.22% | 14.15% | 14.17% |
| Pretax margin | 12.93% | 10.70% | -0.58% | 12.05% | -6.67% |
| Net profit margin | 9.65% | 8.11% | -1.74% | 9.78% | -9.80% |
Molson Coors Brewing Co Class B has shown varying profitability margins over the past five years.
1. Gross Profit Margin:
- The gross profit margin has fluctuated, with a slight increase from 39.03% in 2020 to 38.99% in 2024. This suggests that the company has been able to maintain a relatively stable level of profitability after a dip in 2022.
2. Operating Profit Margin:
- The operating profit margin also saw fluctuations, increasing from 14.17% in 2020 to 15.08% in 2024. The significant improvement in 2022 to 17.22% indicates the company's efficiency in managing operating expenses.
3. Pretax Margin:
- The pretax margin showed a mixed performance, with negative margins in 2020 and 2022. However, there was a notable increase from -0.58% in 2022 to 12.93% in 2024, indicating enhanced profitability before taxes.
4. Net Profit Margin:
- The net profit margin exhibited a similar trend to the pretax margin, with negative margins in 2020 and 2022. The margins turned positive in the subsequent years, showing a recovery and improvement in profitability over time.
Overall, the company's profitability ratios demonstrate a mix of challenges and improvements in managing costs, generating revenue, and enhancing overall profitability over the analyzed period. Continual monitoring and strategic adjustments may be necessary to sustain and further improve profitability ratios in the future.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.73% | 5.45% | 7.12% | 5.27% | 5.01% |
| Return on assets (ROA) | 4.31% | 3.60% | -0.72% | 3.64% | -3.46% |
| Return on total capital | 13.64% | 11.23% | 8.90% | 11.18% | -2.90% |
| Return on equity (ROE) | 8.57% | 7.19% | -1.47% | 7.50% | -7.65% |
Based on the provided data, we can observe the following trends for Molson Coors Brewing Co Class B's profitability ratios:
1. Operating Return on Assets (Operating ROA):
- The company's Operating ROA has shown a fluctuating pattern over the years, varying from 5.01% in 2020 to 7.12% in 2022. This indicates that the company's ability to generate profits from its operational assets improved in 2022 compared to previous years.
2. Return on Assets (ROA):
- While the traditional ROA ratio was negative at -3.46% in 2020, it turned positive and increased to 4.31% by the end of 2024. This suggests a positive shift in the company's profitability efficiency in utilizing its total assets to generate earnings over the period.
3. Return on Total Capital:
- The Return on Total Capital ratio experienced significant fluctuations but generally showed an upward trend from -2.90% in 2020 to 13.64% in 2024. This metric signifies the company's ability to generate returns from all forms of capital invested in the business, including debt and equity.
4. Return on Equity (ROE):
- Molson Coors Brewing Co Class B's ROE also displayed variations, starting at -7.65% in 2020 and reaching 8.57% by the end of 2024. This metric measures the return on shareholder equity and reflects the company's effectiveness in generating profits from the shareholders' investments.
In summary, the company's profitability ratios show improved performance and efficiency in generating returns on assets, total capital, and equity over the analyzed period, indicating positive trends in profitability and operational efficiency.