Upbound Group Inc. (UPBD)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 50.65% | 48.98% | 48.76% | 59.42% | 61.58% |
| Operating profit margin | 4.08% | 3.50% | 6.12% | 8.43% | 9.51% |
| Pretax margin | 1.32% | 1.45% | 4.24% | 7.92% | 8.38% |
| Net profit margin | -0.13% | 0.29% | 2.94% | 7.40% | 6.50% |
Upbound Group Inc.'s profitability ratios have shown some fluctuation over the past five years. The gross profit margin, which is a measure of a company's efficiency in generating revenue from its cost of goods sold, has ranged from 48.76% to 61.58%. While it decreased slightly in 2022 and 2023, the gross profit margin remains relatively stable around 50%, indicating the company's ability to maintain a healthy level of profitability after accounting for direct costs.
Moving to the operating profit margin, which reflects the company's ability to control operating expenses relative to revenue, Upbound Group Inc. has experienced a declining trend from 9.51% in 2019 to 4.08% in 2023. This decrease suggests that the company may be facing challenges in managing its operating costs efficiently, which could impact overall profitability.
The pretax margin, representing the percentage of each dollar of revenue that translates into pre-tax profit, has shown a similar downward trajectory, declining from 8.38% in 2019 to 1.32% in 2023. This trend indicates that Upbound Group Inc. may be facing increased operational or financial challenges that are impacting its profitability before taxes.
Lastly, the net profit margin, which reveals how much of each dollar of revenue translates into net income after all expenses have been deducted, has fluctuated over the years. While the company achieved a positive net profit margin in most years, it reported a negative net profit margin of -0.13% in 2023. This suggests that Upbound Group Inc. may be experiencing challenges in generating profits after accounting for all expenses, potentially due to increased costs or lower revenue during the most recent year.
In conclusion, Upbound Group Inc. has shown mixed performance in its profitability ratios, with some metrics indicating stability or improvement, while others pointing towards potential challenges that may require further analysis and strategic actions to enhance overall profitability.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.98% | 5.37% | 9.37% | 13.55% | 16.04% |
| Return on assets (ROA) | -0.19% | 0.45% | 4.51% | 11.89% | 10.96% |
| Return on total capital | 29.67% | 28.41% | 51.66% | 40.21% | 55.52% |
| Return on equity (ROE) | -0.92% | 2.35% | 26.29% | 35.15% | 37.81% |
Upbound Group Inc.'s profitability ratios have fluctuated over the past five years. The Operating return on assets (Operating ROA) has shown a downward trend, decreasing from 16.04% in 2019 to 5.98% in 2023, indicating a decline in the company's ability to generate operating income from its assets.
Return on assets (ROA) has been negative in the most recent year, indicating that the company experienced a net loss relative to its total assets. This may raise concerns about the company's profitability and operational efficiency.
Return on total capital has shown variability over the years, with the highest ratio in 2021 at 51.66% and the lowest in 2020 at 40.21%. This ratio reflects the company's ability to generate returns for both debt and equity providers.
Return on equity (ROE) has also fluctuated, with a significant drop from 2019 to 2020, followed by a gradual increase in the subsequent years. The negative ROE in 2023 suggests that the company may not be effectively utilizing its equity to generate profits for shareholders.
Overall, Upbound Group Inc.'s profitability ratios indicate mixed performance in recent years, with declines in some ratios and fluctuations in others. Further analysis would be needed to understand the underlying factors influencing these trends and to assess the company's overall financial health and performance.