Tegna Inc (TGNA)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 43.39% | 40.95% | 48.37% | 46.55% | 48.83% |
| Operating profit margin | 25.30% | 25.20% | 30.21% | 26.82% | 29.65% |
| Pretax margin | 24.92% | 20.84% | 25.42% | 20.52% | 21.68% |
| Net profit margin | 19.34% | 16.38% | 19.21% | 15.95% | 16.40% |
Tegna Inc's profitability ratios show fluctuating trends over the past five years. The gross profit margin decreased from 48.83% in 2020 to 43.39% in 2024, indicating a slight decline in the company's ability to generate profits from its core operations.
Similarly, the operating profit margin also experienced a decrease from 29.65% in 2020 to 25.30% in 2024, suggesting a reduction in the efficiency of the company's operating activities in converting sales into profits.
The pretax margin shows mixed performance as it increased from 21.68% in 2020 to 25.42% in 2022, but then declined to 24.92% in 2024. This indicates that although the company's profitability before accounting for taxes improved in 2022, it slightly decreased by 2024.
On the other hand, the net profit margin fluctuated, starting at 16.40% in 2020, dipping to 15.95% in 2021, then increasing to 19.21% in 2022, and eventually settling at 19.34% in 2024. The increase in net profit margin in 2022 and 2024 suggests that the company was able to control costs and improve its bottom line profitability.
Overall, Tegna Inc's profitability ratios reflect a mix of margin improvements and declines over the past five years, indicating fluctuations in the company's ability to generate profits and manage expenses effectively.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 10.71% | 10.48% | 13.52% | 11.60% | 12.72% |
| Return on assets (ROA) | 8.19% | 6.81% | 8.59% | 6.90% | 7.04% |
| Return on total capital | 31.36% | 28.82% | 32.83% | 32.25% | 42.09% |
| Return on equity (ROE) | 19.96% | 17.62% | 20.51% | 18.93% | 23.41% |
Tegna Inc's profitability ratios indicate varying levels of return on assets and equity over the period from December 31, 2020, to December 31, 2024.
1. Operating return on assets (Operating ROA) has fluctuated between 10.48% and 13.52% during the period, indicating the company's ability to generate operating profit relative to its total assets. A higher Operating ROA suggests efficient use of assets to generate operating income.
2. Return on assets (ROA) has ranged from 6.81% to 8.59% over the same period, reflecting the company's overall profitability relative to its total assets. This ratio considers both operating and non-operating income.
3. Return on total capital has shown a decreasing trend from 42.09% in 2020 to 31.36% in 2024, indicating a decline in the company's ability to generate a return on its total invested capital. This ratio provides insight into the efficiency of the company's capital utilization.
4. Return on equity (ROE) has ranged from 17.62% to 23.41% during the period, reflecting the return generated for shareholders' equity investment. A higher ROE indicates a better return on equity capital employed by the company.
Overall, while Tegna Inc has shown fluctuations in its profitability ratios over the years, it is essential to assess these ratios in conjunction with other financial metrics to gain a comprehensive understanding of the company's financial performance and efficiency in generating returns for investors.