Travel + Leisure Co (TNL)
Net profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 411,000 | 396,000 | 357,000 | 308,000 | -255,000 |
| Revenue | US$ in thousands | 3,864,000 | 3,750,000 | 3,567,000 | 3,134,000 | 2,160,000 |
| Net profit margin | 10.64% | 10.56% | 10.01% | 9.83% | -11.81% |
December 31, 2024 calculation
Net profit margin = Net income ÷ Revenue
= $411,000K ÷ $3,864,000K
= 10.64%
Net profit margin is a crucial financial metric that reflects a company's profitability by measuring the percentage of revenue that translates into net income. In the case of Travel + Leisure Co, the net profit margin has shown a significant improvement over the years.
As of December 31, 2020, the net profit margin was negative at -11.81%, indicating that the company incurred a net loss relative to its revenue. However, starting from December 31, 2021, there was a notable turnaround with the net profit margin increasing to 9.83%. This positive trend continued in the following years, reaching 10.01% as of December 31, 2022, 10.56% as of December 31, 2023, and further improving to 10.64% as of December 31, 2024.
The consistent increase in net profit margin indicates that Travel + Leisure Co has been effectively managing its expenses and operating efficiently to generate higher profits relative to its revenue. This could be a result of cost-cutting measures, revenue growth, or improved operational efficiency. Overall, the upward trend in net profit margin reflects positively on the company's financial performance and indicates a strengthening bottom line profitability.
Peer comparison
Dec 31, 2024