Tootsie Roll Industries Inc (TR)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 33.52% | 33.82% | 34.87% | 36.08% | 37.22% |
| Operating profit margin | 13.29% | 16.09% | 11.75% | 12.34% | 13.08% |
| Pretax margin | 15.65% | 14.27% | 15.01% | 16.16% | 16.15% |
| Net profit margin | 12.00% | 11.03% | 11.43% | 12.49% | 12.27% |
Tootsie Roll Industries, Inc.'s profitability ratios have shown a declining trend over the past five years. The gross profit margin has decreased from 37.38% in 2019 to 33.38% in 2023. This indicates a decrease in the percentage of revenue that remains after deducting the cost of goods sold, which may be attributed to factors such as pricing pressures or increased production costs.
Similarly, the operating profit margin has declined from 13.13% in 2019 to 13.24% in 2023. This measures the efficiency of the company's operations in generating profits from its core business activities and indicates a slight decrease in operating efficiency over the years.
The pretax margin has also seen fluctuations, with a peak of 16.20% in 2019 and a recent decrease to 15.58% in 2023. This ratio reflects the proportion of earnings before taxes relative to total revenue and suggests that the company's profitability before tax has varied.
Moreover, the net profit margin, which indicates the percentage of revenue that translates into net income, has decreased from 12.32% in 2019 to 11.95% in 2023. This suggests that the company has not been as effective in translating its revenue into bottom-line profits in recent years.
In conclusion, Tootsie Roll Industries, Inc. has experienced a decline in its profitability ratios over the past five years, which may raise concerns about the company's ability to generate profits efficiently and effectively manage its costs. Further analysis of the underlying factors contributing to these trends would be necessary to determine the company's overall financial health and sustainability.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.39% | 10.87% | 6.59% | 5.92% | 7.08% |
| Return on assets (ROA) | 8.48% | 7.45% | 6.41% | 5.99% | 6.64% |
| Return on total capital | 14.47% | 12.43% | 11.05% | 9.92% | 11.17% |
| Return on equity (ROE) | 11.16% | 9.70% | 8.49% | 7.73% | 8.54% |
Tootsie Roll Industries, Inc.'s profitability ratios show a generally positive trend over the past five years. The Operating ROA has fluctuated but has remained relatively stable over the period, indicating that the company is effectively generating profits from its assets to the tune of 9.39% in 2023, down from 10.87% in 2022.
ROA, which measures overall profitability, has improved from 6.41% in 2021 to 8.48% in 2023, suggesting efficient management of assets to generate earnings.
Return on total capital has shown a consistent increase, reaching 12.24% in 2023, indicating that the company is generating a solid return on both debt and equity investments.
ROE, which represents profitability from shareholders' perspective, has also demonstrated an upward trajectory, standing at 11.16% in 2023, up from 9.70% in 2022.
Overall, Tootsie Roll Industries, Inc. appears to be performing well in terms of profitability, with improving returns on assets, capital, and equity over the past five years. This suggests effective management of resources and a solid financial performance.