Travel + Leisure Co (TNL)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 52.85% | 54.88% | 54.84% | 59.09% | 22.31% |
| Operating profit margin | 18.97% | 19.20% | 18.31% | 19.72% | -4.86% |
| Pretax margin | 14.13% | 13.07% | 13.65% | 13.53% | -12.87% |
| Net profit margin | 10.64% | 10.56% | 10.01% | 9.83% | -11.81% |
Based on the provided data, Travel + Leisure Co has shown significant improvements in its profitability ratios over the years. Let's break down the analysis:
1. Gross Profit Margin:
- The gross profit margin increased from 22.31% in December 2020 to 52.85% by December 2024. This indicates that the company has been able to effectively manage its production costs and generate more profit from its sales.
2. Operating Profit Margin:
- The operating profit margin also saw a positive trend, moving from a negative margin of -4.86% in December 2020 to 18.97% in December 2024. This suggests that Travel + Leisure Co has been able to control its operating expenses and improve its operational efficiency.
3. Pretax Margin:
- The pretax margin showed a steady increase from 2020 to 2024, reaching 14.13% in the latest year. This signifies that the company has been able to generate more income before accounting for taxes, indicating overall financial health.
4. Net Profit Margin:
- The net profit margin, which reflects the company's bottom line profitability, improved from a negative margin of -11.81% in December 2020 to a positive margin of 10.64% in December 2024. This demonstrates Travel + Leisure Co's ability to generate more profit after considering all expenses and taxes.
In conclusion, Travel + Leisure Co has shown consistent improvements in its profitability ratios over the years, indicating effective cost management, operational efficiency, and overall financial health.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 10.88% | 10.69% | 9.66% | 9.38% | -1.38% |
| Return on assets (ROA) | 6.10% | 5.88% | 5.28% | 4.68% | -3.35% |
| Return on total capital | — | — | — | — | — |
| Return on equity (ROE) | — | — | — | — | — |
Travel + Leisure Co's profitability ratios show an improving trend over the past few years.
1. Operating return on assets (Operating ROA) has increased from -1.38% in December 2020 to 10.88% in December 2024. This indicates that the company's operating income generated from its assets has significantly improved, reaching a healthy level by the end of 2024.
2. Return on assets (ROA) has also shown a positive trend, moving from -3.35% in December 2020 to 6.10% in December 2024. This ratio reflects the company's overall profitability relative to its total assets, with the company becoming more efficient in generating profits from its assets over the years.
3. The data did not provide Return on total capital for any of the years, so we couldn't assess the company's profitability in relation to its total capital employed.
4. Similarly, Return on equity (ROE) information was not available for any of the years, preventing an analysis of how well the company is generating returns for its shareholders based on their equity investments.
In conclusion, Travel + Leisure Co has shown improvements in its profitability metrics, especially in operating return on assets and return on assets, suggesting effective management of its assets and operations to enhance profitability.