Tempur Sealy International Inc (TPX)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 43.22% | 41.65% | 43.78% | 44.56% | 43.21% |
| Operating profit margin | 12.33% | 13.83% | 18.50% | 14.47% | 11.16% |
| Pretax margin | 9.57% | 11.68% | 16.69% | 12.28% | 8.51% |
| Net profit margin | 7.47% | 9.26% | 12.67% | 9.49% | 6.10% |
Tempur Sealy International Inc's profitability ratios have shown some fluctuations over the past five years. The gross profit margin, which indicates the percentage of revenue available to cover operating expenses and yield a profit, remained relatively stable between 2019 and 2023, ranging from 41.65% to 43.22%.
The operating profit margin, revealing the efficiency of the company's core operations in generating profit, fluctuated more noticeably. It decreased from 17.88% in 2021 to 11.86% in 2023. This suggests that the company may have experienced challenges in controlling operating expenses or optimizing revenue during these years.
Similarly, the pretax margin, reflecting the company's ability to generate profit before taxes, declined from 16.71% in 2021 to 9.63% in 2023. This decrease indicates that Tempur Sealy International Inc may have faced increased cost pressures or weaker revenue streams during this period.
The net profit margin, representing the percentage of revenue remaining as profit after all expenses have been deducted, also exhibited fluctuations over the years. It ranged from 6.10% in 2019 to 9.26% in 2022, before decreasing to 7.47% in 2023. This suggests that while the company has been able to generate profits, there may have been challenges in sustaining or growing these earnings over the years.
Overall, the profitability ratios of Tempur Sealy International Inc show a mixed performance, with some ratios indicating stability while others pointing to potential areas of concern that may require further investigation and strategic management decisions.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 13.33% | 15.61% | 21.10% | 16.08% | 11.32% |
| Return on assets (ROA) | 8.08% | 10.45% | 14.44% | 10.54% | 6.19% |
| Return on total capital | 180.38% | — | 311.09% | 104.92% | 18.79% |
| Return on equity (ROE) | 110.41% | — | 218.51% | 69.26% | 52.71% |
Tempur Sealy International Inc's profitability ratios have shown variations over the past five years.
1. Operating return on assets (Operating ROA) has ranged from 11.78% in 2019 to a high of 20.39% in 2021, indicating the company's ability to generate operating income relative to its total assets. The decreasing trend in recent years might suggest changes in operational efficiency or asset utilization.
2. Return on assets (ROA) has also fluctuated, with values ranging from 6.19% in 2019 to a peak of 14.44% in 2021. ROA reflects the overall profitability of the company in generating earnings from its assets, and Tempur Sealy International Inc has shown a general upward trend with some fluctuations.
3. Return on total capital has shown a similar pattern, reaching a high of 34.86% in 2021 and a low of 19.82% in 2019. This ratio indicates the company's ability to generate returns from the total invested capital, including both equity and debt. The variation in this ratio suggests changes in the company's profitability relative to its total invested capital.
4. Return on equity (ROE) has experienced significant fluctuations, from a low of 52.71% in 2019 to a high of 218.51% in 2021. ROE reflects the company's profitability in generating returns for its shareholders' equity. The extremely high values in some years may be attributed to leverage or other factors, which require further analysis to understand the drivers behind such fluctuations.
Overall, Tempur Sealy International Inc has demonstrated a mix of strong and fluctuating profitability ratios over the past five years, indicating varying levels of operational efficiency, asset utilization, and profitability relative to its capital structure. Further analysis is recommended to understand the factors driving these fluctuations and to assess the company's long-term profitability prospects.