Tootsie Roll Industries Inc (TR)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 35.01% | 33.38% | 33.34% | 34.36% | 36.17% |
| Operating profit margin | 13.90% | 13.24% | 16.25% | 11.86% | 12.36% |
| Pretax margin | 17.54% | 15.58% | 14.40% | 15.15% | 16.19% |
| Net profit margin | 12.01% | 11.95% | 11.14% | 11.54% | 12.52% |
Tootsie Roll Industries Inc's profitability ratios have shown some fluctuations over the years:
1. Gross Profit Margin:
- The gross profit margin has decreased from 36.17% in 2020 to 33.34% in 2022. However, there was a slight increase to 35.01% in 2024. This indicates the company's ability to generate profits after accounting for the cost of goods sold.
2. Operating Profit Margin:
- The operating profit margin declined from 12.36% in 2020 to 11.86% in 2021, then significantly increased to 16.25% in 2022 before stabilizing around 13-14% in the following years. This suggests that the company's efficiency in managing operating expenses improved in 2022 but slightly decreased in the later years.
3. PreTax Margin:
- The pretax margin saw a slight decrease from 16.19% in 2020 to 14.40% in 2022 before increasing to 17.54% in 2024. This metric reflects the company's ability to control expenses and generate income before taxes.
4. Net Profit Margin:
- The net profit margin decreased from 12.52% in 2020 to 11.14% in 2022, with a slight recovery to 12.01% in 2024. This ratio indicates the company's overall profitability after accounting for all expenses and taxes.
Overall, Tootsie Roll Industries Inc's profitability ratios show some variability, with improvements in certain areas offset by declines in others. Monitoring these ratios over time can provide insights into the company's financial health and performance.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.76% | 9.39% | 10.87% | 6.59% | 5.92% |
| Return on assets (ROA) | 7.57% | 8.48% | 7.45% | 6.41% | 5.99% |
| Return on total capital | 14.63% | 14.60% | 12.16% | 8.73% | 7.63% |
| Return on equity (ROE) | 9.97% | 11.16% | 9.70% | 8.49% | 7.73% |
Tootsie Roll Industries Inc's profitability ratios display an upward trend over the years, reflecting improving performance.
- Operating return on assets (Operating ROA) increased from 5.92% in December 2020 to 8.76% in December 2024, indicating the company's ability to generate operating income relative to its assets.
- Return on assets (ROA) also showed a positive trajectory, rising from 5.99% in December 2020 to 7.57% in December 2024, indicating an enhancement in the company's overall profitability.
- Return on total capital experienced a substantial increase from 7.63% in December 2020 to 14.63% in December 2024, showcasing efficient capital utilization and higher returns to both debt and equity holders.
- Return on equity (ROE) displayed a mixed trend, initially rising from 7.73% in December 2020 to 11.16% in December 2023, but then slightly decreasing to 9.97% in December 2024. This indicates the company's ability to generate profits from shareholders' equity but with some fluctuations.
Overall, the increasing profitability ratios suggest that Tootsie Roll Industries Inc has been successful in enhancing its operational efficiency and generating favorable returns for its stakeholders over the analyzed period.