Molson Coors Brewing Co Class B (TAP)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 17.23% | 15.72% | 18.04% | 32.14% | 32.29% |
| Operating profit margin | 5.67% | 0.68% | 6.47% | -3.49% | 5.88% |
| Pretax margin | 4.91% | -0.22% | 5.50% | -5.52% | 3.65% |
| Net profit margin | 3.74% | -0.75% | 4.48% | -8.09% | 1.86% |
Molson Coors Beverage Company's profitability ratios demonstrate fluctuating performance over the past five years. The gross profit margin has shown some volatility, with a low of 34.16% in 2022 and a high of 39.71% in 2019. This indicates varying levels of efficiency in generating revenue after accounting for the cost of goods sold.
The operating profit margin has also experienced fluctuations, reaching its highest level in 2021 at 14.58% and its lowest in 2022 at 9.73%. This metric shows the company's ability to generate profit from its core operations.
The pretax margin has been volatile as well, with significant swings from a negative figure of -6.67% in 2020 to a positive of 12.05% in 2021. This suggests that Molson Coors has experienced challenges in controlling operating expenses and managing taxes efficiently.
The net profit margin, which reflects how much profit the company is able to retain after all expenses, showcases a similar trend of inconsistency. The company faced a loss in 2019 and 2020 but returned to profitability in 2021 and 2023. This pattern indicates a need for improved cost management and revenue generation strategies to enhance overall profitability and financial stability.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.45% | 0.61% | 5.27% | -1.50% | 2.65% |
| Return on assets (ROA) | 3.60% | -0.68% | 3.64% | -3.47% | 0.84% |
| Return on total capital | 7.99% | 1.06% | 7.46% | -1.90% | 3.51% |
| Return on equity (ROE) | 7.19% | -1.38% | 7.50% | -7.67% | 1.80% |
Molson Coors Beverage Company's profitability ratios have shown varied performance over the past five years.
1. Operating return on assets (Operating ROA) has exhibited a fluctuating trend, with a notable increase in 2023 compared to the previous year. This ratio indicates that the company generated a profit of 5.45% from its operating assets in 2023.
2. Return on assets (ROA), which includes all assets (operating and non-operating), improved significantly in 2023 compared to negative figures in 2022 and 2020. However, it remains on the lower side at 3.60% in 2023.
3. Return on total capital has shown a generally positive trend, reaching 7.41% in 2023. This ratio reflects the company's ability to generate profits from both equity and debt sources of capital.
4. Return on equity (ROE) also demonstrated an upward trend in 2023, indicating a return of 7.19% to shareholders' equity. However, the negative ROE values in 2022 and 2020 highlight challenges faced by the company in those years.
Overall, while Molson Coors Beverage Company has made improvements in its profitability ratios in 2023, there are still areas that require attention to ensure sustained profitability and growth.