Taylor Morn Home (TMHC)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 24.29% | 24.04% | 25.44% | 20.63% | 17.04% |
| Operating profit margin | 13.88% | 14.62% | 16.93% | 11.45% | 7.63% |
| Pretax margin | 14.11% | 13.71% | 16.89% | 11.25% | 5.19% |
| Net profit margin | 10.81% | 10.37% | 12.80% | 8.84% | 3.97% |
Taylor Morn Home has shown a positive trend in its profitability ratios over the years. The gross profit margin has steadily increased from 17.04% in December 2020 to 24.29% in December 2024. This indicates that the company has been able to maintain a higher percentage of revenue as gross profit over time.
Similarly, the operating profit margin has also improved consistently, rising from 7.63% in December 2020 to 13.88% in December 2024. This suggests that the company has become more efficient in controlling its operating expenses and generating profits from its core business activities.
Moreover, the pretax margin has shown a favorable progression, increasing from 5.19% in December 2020 to 14.11% in December 2024. This indicates that the company has been able to enhance its profitability before accounting for taxes.
Lastly, the net profit margin has demonstrated a positive trend, climbing from 3.97% in December 2020 to 10.81% in December 2024. This shows that Taylor Morn Home has improved its ability to convert revenue into net income, reflecting stronger overall financial performance.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 12.19% | 12.50% | 16.44% | 9.84% | 6.04% |
| Return on assets (ROA) | 9.50% | 8.87% | 12.43% | 7.60% | 3.15% |
| Return on total capital | 19.70% | 19.20% | 30.05% | 21.51% | 9.02% |
| Return on equity (ROE) | 15.06% | 14.47% | 22.74% | 16.89% | 6.95% |
Taylor Morn Home's profitability ratios have shown a positive trend over the past five years, reflecting improved operational efficiency and financial performance.
- Operating return on assets (Operating ROA) increased consistently from 6.04% in 2020 to 16.44% in 2022, indicating that the company generated a higher operating income relative to its total assets during this period. However, there was a slight decline in 2023 and 2024 to 12.50% and 12.19% respectively.
- Return on assets (ROA) also demonstrated a steady growth, rising from 3.15% in 2020 to 12.43% in 2022. Although there was a slight decrease in 2023 and 2024 to 8.87% and 9.50% respectively, the company still managed to generate a significant return relative to its total assets.
- Return on total capital increased substantially, from 9.02% in 2020 to 30.05% in 2022, indicating that the company generated higher returns in relation to its total capital employed. There was a decrease in 2023 and 2024 to 19.20% and 19.70% respectively, which suggests that the company may have experienced a lower return on its overall capital investments.
- Return on equity (ROE) showed a similar upward trajectory, increasing from 6.95% in 2020 to 22.74% in 2022. While there was a slight decline in 2023 and 2024 to 14.47% and 15.06% respectively, Taylor Morn Home still delivered solid returns to its shareholders in relation to their equity investments.
Overall, the profitability ratios of Taylor Morn Home reflect a positive performance, with improvements in operational efficiency and returns to both asset and capital providers, albeit with some fluctuations in the later years.