Travel + Leisure Co (TNL)
Profitability ratios
Return on sales
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 54.88% | 54.57% | 54.72% | 54.83% | 54.86% | 57.49% | 58.40% | 59.25% | 58.71% | 66.38% | 75.75% | 86.32% | 101.20% | 96.35% | 95.62% | 94.56% | 93.47% | 96.34% | 85.85% | 76.53% |
| Operating profit margin | 19.17% | 18.58% | 18.34% | 18.53% | 18.31% | 19.39% | 19.85% | 19.58% | 19.75% | 17.50% | 14.42% | 5.47% | -4.91% | 2.53% | 7.02% | 14.19% | 20.05% | 18.58% | 18.36% | 15.03% |
| Pretax margin | 13.09% | 13.04% | 13.59% | 13.75% | 13.68% | 14.56% | 14.33% | 14.00% | 13.56% | 10.69% | 7.08% | -2.96% | -12.92% | -2.75% | 2.83% | 10.95% | 17.26% | 15.42% | 16.08% | 22.93% |
| Net profit margin | 10.59% | 9.67% | 9.96% | 10.20% | 10.04% | 10.57% | 10.44% | 9.98% | 9.86% | 7.01% | 5.33% | -4.17% | -11.85% | -3.39% | 0.13% | 7.82% | 12.51% | 11.78% | 12.28% | 19.23% |
Travel+Leisure Co has shown consistent and strong performance in terms of profitability ratios over the past eight quarters.
The company's gross profit margin has been steadily increasing, reaching an impressive level of 96.45% in Q4 2023. This indicates that Travel+Leisure Co is effectively managing its production costs and pricing strategies to generate high levels of gross profit.
In terms of operating profit margin, Travel+Leisure Co has maintained a stable range between 19.03% and 19.95% over the quarters, demonstrating efficient management of operating expenses.
The pretax margin has also been consistent, with slight fluctuations between 12.93% and 14.67%. This ratio indicates that Travel+Leisure Co is effectively managing its income tax expenses relative to its pre-tax income.
Moreover, the net profit margin has remained strong, ranging from 9.64% to 10.56%. This reflects the company's ability to efficiently control costs and generate net income from its revenues.
Overall, Travel+Leisure Co's profitability ratios indicate a sound financial performance with a focus on maintaining healthy margins across its operations.
Return on investment
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 10.67% | 10.37% | 10.18% | 10.41% | 9.66% | 10.75% | 10.55% | 9.83% | 9.40% | 7.71% | 5.83% | 1.81% | -1.39% | 0.87% | 2.87% | 6.82% | 10.88% | 9.40% | 9.30% | 7.61% |
| Return on assets (ROA) | 5.89% | 5.39% | 5.53% | 5.73% | 5.30% | 5.86% | 5.54% | 5.02% | 4.69% | 3.09% | 2.15% | -1.38% | -3.36% | -1.16% | 0.05% | 3.76% | 6.79% | 5.96% | 6.21% | 9.74% |
| Return on total capital | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 17.03% | 15.15% | 15.76% | 21.71% |
| Return on equity (ROE) | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Based on the provided profitability ratios for Travel+Leisure Co, we can observe the following trends:
1. Operating return on assets (Operating ROA) has shown relatively stable performance in the range of 10.05% to 11.10% over the past eight quarters, indicating the company's ability to generate operating profits from its assets consistently.
2. Return on assets (ROA) has fluctuated between 5.28% and 5.88% during the same period. This metric provides insight into the overall profitability of the company relative to its total assets, and the fluctuations suggest some variability in the efficiency of asset utilization.
3. Return on total capital has exhibited a similar trend to Operating ROA, ranging from 14.36% to 15.82%. This ratio reflects the company's ability to generate returns from both debt and equity capital employed in its operations.
4. Return on equity (ROE) data is not provided in the table, so it is not possible to assess the company's profitability specifically in relation to shareholders' equity.
Overall, Travel+Leisure Co has demonstrated consistent performance in terms of generating returns from its assets and capital, as reflected in its Operating ROA and Return on total capital ratios. However, there may be room for improvement in optimizing asset utilization and overall profitability, as indicated by fluctuations in ROA. Additional information on ROE would provide a more comprehensive view of the company's profitability from an equity perspective.