Tractor Supply Company (TSCO)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 36.26% | 35.92% | 35.00% | 35.17% | 35.42% |
| Operating profit margin | 9.86% | 10.16% | 10.10% | 10.26% | 9.39% |
| Pretax margin | 9.49% | 9.84% | 9.89% | 10.05% | 9.12% |
| Net profit margin | 7.40% | 7.61% | 7.66% | 7.83% | 7.05% |
Tractor Supply Company's profitability ratios show a stable gross profit margin over the past five years, with a slight increase from 35.42% in December 2020 to 36.26% in December 2024. The operating profit margin improved from 9.39% in 2020 to 10.26% in 2021 but saw a slight decrease to 9.86% in 2024. The pretax margin has fluctuated slightly, ranging from 9.12% in 2020 to 10.05% in 2021, and then declining to 9.49% in 2024.
The net profit margin has also shown stability, starting at 7.05% in December 2020 and ending at 7.40% in December 2024. Overall, while there have been some fluctuations, Tractor Supply Company has managed to maintain healthy profitability levels, demonstrating efficient cost management and revenue generation.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 14.97% | 16.10% | 16.90% | 16.82% | 14.14% |
| Return on assets (ROA) | 11.23% | 12.05% | 12.82% | 12.84% | 10.62% |
| Return on total capital | 64.64% | 68.79% | 70.26% | 65.25% | 51.82% |
| Return on equity (ROE) | 48.51% | 51.50% | 53.30% | 49.79% | 38.93% |
Tractor Supply Company's profitability ratios exhibit a positive trend over the years.
1. Operating return on assets (Operating ROA) increased from 14.14% in 2020 to 16.90% in 2022 before slightly dropping to 14.97% in 2024. This ratio indicates the company's ability to generate profit from its operating assets, showing an overall improvement in operational efficiency.
2. Return on assets (ROA) climbed from 10.62% in 2020 to 12.82% in 2022, with a moderate decline to 11.23% by 2024. ROA reflects the company's overall profitability in relation to its total assets, indicating a healthy return on investment.
3. Return on total capital surged from 51.82% in 2020 to 70.26% in 2022, then decreased to 64.64% in 2024. This ratio demonstrates the company's efficiency in generating returns on both debt and equity capital, showing strong performance in utilizing capital effectively.
4. Return on equity (ROE) saw a steady increase from 38.93% in 2020 to 53.30% in 2022 before easing to 48.51% in 2024. ROE measures the return generated for shareholders' equity and signifies the company's profitability from shareholders' perspective, portraying robust performance in delivering returns to equity investors.
Overall, Tractor Supply Company's profitability ratios indicate a positive trajectory, showcasing the company's effective management of assets, capital, and equity to generate profits and create value for its stakeholders.