TKO Group Holdings, Inc. (TKO)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 100.00% | 69.28% | 71.44% | 67.48% | 70.00% |
| Operating profit margin | 10.09% | 26.67% | 47.75% | 37.90% | 35.25% |
| Pretax margin | 1.22% | 12.38% | 35.39% | 28.04% | 21.91% |
| Net profit margin | 0.34% | -2.10% | 33.97% | 26.39% | 19.88% |
TKO Group Holdings, Inc. has shown varying levels of profitability over the past five years based on its profitability ratios. The Gross Profit Margin has been consistently high, ranging from 67.48% to 100.00%, indicating the company's ability to generate profits after accounting for the cost of goods sold.
In terms of Operating Profit Margin, the company experienced fluctuations, with a peak of 47.75% in 2022 but dropping to 10.09% in 2024. This indicates that TKO Group Holdings, Inc. has been efficient in controlling operating expenses in some years but faced challenges in others.
The Pretax Margin also varied significantly, with a high of 35.39% in 2022 and a low of 1.22% in 2024. This suggests that the company's profitability before accounting for taxes has been impacted by fluctuations in revenue and expenses over the years.
The Net Profit Margin, which reflects the company's bottom line profitability, showed a significant decline in 2023 to -2.10% before slightly improving to 0.34% in 2024. This indicates that TKO Group Holdings, Inc. faced challenges in generating net profits in 2023 but managed to recover slightly in the following year.
Overall, the company's profitability ratios reflect a mix of strengths and challenges, highlighting the importance of consistent performance monitoring and strategic decision-making to ensure sustainable profitability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 2.23% | 3.52% | 15.20% | 9.10% | 23.82% |
| Return on assets (ROA) | 0.07% | -0.28% | 10.82% | 6.34% | 13.43% |
| Return on total capital | 6.93% | 10.87% | 95.47% | 21.10% | 53.83% |
| Return on equity (ROE) | 0.23% | -0.86% | 68.07% | 21.81% | 46.14% |
TKO Group Holdings, Inc.'s profitability ratios show fluctuations over the period from 2020 to 2024.
1. Operating Return on Assets (Operating ROA):
- The Operating ROA peaked at 23.82% in December 2020 before gradually declining to 9.10% in December 2021. There was a significant improvement in 2022, reaching 15.20%, but a notable drop to 3.52% in 2023 and a further decrease to 2.23% in 2024.
2. Return on Assets (ROA):
- The ROA was 13.43% in December 2020, declined to 6.34% in December 2021, and then improved in 2022 to 10.82%. However, in 2023, it turned negative at -0.28% before only slightly recovering to 0.07% in 2024.
3. Return on Total Capital:
- The Return on Total Capital was high at 53.83% in December 2020, but it decreased to 21.10% in December 2021. There was a substantial surge in 2022 to 95.47%, followed by declines to 10.87% in 2023 and 6.93% in 2024.
4. Return on Equity (ROE):
- The ROE started strong at 46.14% in December 2020, dropped to 21.81% in December 2021, then spiked to 68.07% in 2022. However, it fell sharply to -0.86% in 2023, and only slightly recovered to 0.23% in 2024.
Overall, TKO Group Holdings, Inc. exhibited fluctuations in profitability ratios over the period, indicating varying levels of efficiency in generating profits from assets and capital. The downward trends in some ratios in the latter years may require further investigation to identify and address underlying issues affecting profitability.