Travel + Leisure Co (TNL)
Profitability ratios
Return on sales
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 59.02% | 59.30% | 57.13% | 54.85% | 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% |
| Operating profit margin | 18.99% | 18.77% | 19.28% | 19.30% | 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% |
| Pretax margin | 14.10% | 13.42% | 13.92% | 13.12% | 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% |
| Net profit margin | 10.63% | 10.99% | 11.35% | 10.54% | 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% |
The profitability ratios of Travel + Leisure Co have experienced fluctuations over the years.
1. Gross Profit Margin: Starting at a high of 94.56% in March 2020, the gross profit margin steadily decreased to 54.88% by December 2023 before slightly increasing to 59.02% by December 2024. The company's ability to generate profit from its core business activities has shown a general declining trend during this period.
2. Operating Profit Margin: After a negative operating profit margin of -4.91% in December 2020, the company managed to steadily improve this metric to reach 18.99% by December 2024. This indicates the company's efficiency in managing its operating expenses and generating profits over time.
3. Pretax Margin: Starting at -12.92% in December 2020, the pretax margin consistently improved to reach 14.10% by December 2024. This signifies an enhancement in the company's ability to generate profits before accounting for taxes, showcasing improved financial performance.
4. Net Profit Margin: Despite starting at negative values, the net profit margin displayed a positive trajectory, reaching 10.63% by December 2024. This demonstrates the company's overall ability to control costs and generate profits after all expenses have been accounted for.
In summary, Travel + Leisure Co has shown varying trends in profitability ratios over the years, with improved operating efficiency and profitability despite challenges in gross profit generation.
Return on investment
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 10.90% | 10.73% | 11.01% | 10.41% | 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% |
| Return on assets (ROA) | 6.10% | 6.29% | 6.48% | 5.68% | 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% |
| Return on total capital | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Return on equity (ROE) | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Travel + Leisure Co's profitability ratios show a fluctuating trend over the quarters. The Operating Return on Assets (Operating ROA) has shown improvement from 6.82% in March 2020 to 11.01% in June 2024, indicating the company's ability to generate profits from its operations relative to its assets.
Return on Assets (ROA) also improved from 3.76% in March 2020 to 6.10% in December 2024, illustrating the company's efficiency in generating earnings from its total assets. However, there were periods of negative ROA, suggesting challenges in asset utilization and profitability.
Return on Total Capital and Return on Equity were not available for analysis, potentially indicating that the company may have not reported data relevant to these ratios. These ratios play a crucial role in assessing how effectively the company is utilizing its invested capital and shareholders' equity to generate profits.
In conclusion, while Operating ROA and ROA showed overall improvement over the quarters, the lack of data for Return on Total Capital and Return on Equity limits a comprehensive assessment of Travel + Leisure Co's profitability performance. Further information on these metrics would provide a more complete picture of the company's profitability and financial health.