Upbound Group Inc. (UPBD)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 48.15% | 50.65% | 48.98% | 48.76% | 59.42% |
| Operating profit margin | 6.75% | 4.08% | 3.50% | 6.12% | 8.43% |
| Pretax margin | 4.11% | 1.32% | 1.45% | 4.24% | 7.92% |
| Net profit margin | 2.86% | -0.13% | 0.29% | 2.94% | 7.40% |
Upbound Group Inc.'s profitability ratios reveal a fluctuating trend over the past five years.
The Gross Profit Margin, representing the percentage of revenue retained after accounting for the cost of goods sold, decreased from 59.42% in 2020 to 48.15% in 2024. This suggests a decline in the company's ability to generate profits from its core operations.
The Operating Profit Margin, which indicates the company's operating efficiency by showing how much of each dollar of revenue is converted into operating profit, experienced a decrease from 8.43% in 2020 to 6.75% in 2024. This downward trend may indicate challenges in controlling operating expenses or optimizing operational performance.
The Pretax Margin, reflecting the proportion of income that remains after accounting for all operating expenses but before taxes, also showed a decrease from 7.92% in 2020 to 4.11% in 2024. This suggests that the company's overall profitability before tax implications has been decreasing over the years.
Lastly, the Net Profit Margin, indicating the portion of revenue that translates into net income after all expenses, displayed a mixed performance starting at 7.40% in 2020, dropping to 0.29% in 2022, recovering slightly to 2.86% in 2024. The negative net profit margin in 2023 indicates that the company incurred a net loss during that period.
In conclusion, the declining trend in Upbound Group Inc.'s profitability ratios from 2020 to 2024 suggests challenges in managing costs, generating profits from core operations, and achieving overall profitability. Further analysis and strategic actions may be necessary to improve the company's financial 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) | 11.01% | 5.98% | 5.37% | 9.37% | 13.55% |
| Return on assets (ROA) | 4.66% | -0.19% | 0.45% | 4.51% | 11.89% |
| Return on total capital | 45.81% | 29.67% | 28.41% | 51.66% | 40.21% |
| Return on equity (ROE) | 19.63% | -0.92% | 2.35% | 26.29% | 35.15% |
The profitability ratios of Upbound Group Inc. show fluctuating performance over the years.
1. Operating return on assets (Operating ROA) decreased from 13.55% in 2020 to 5.37% in 2022 before slightly improving to 5.98% in 2023 and significantly rising to 11.01% in 2024. This indicates a mixed trend in the company's ability to generate profits from its operating assets.
2. Return on assets (ROA) followed a similar pattern, starting at 11.89% in 2020, declining to 0.45% in 2022, turning negative at -0.19% in 2023, and then rebounding to 4.66% in 2024. This suggests a period of poor performance in utilizing the company's total assets for generating profits, with some recovery in the latest year.
3. Return on total capital peaked at 51.66% in 2021, then decreased to 28.41% in 2022, followed by a moderate increase to 29.67% in 2023, and a further improvement to 45.81% in 2024. This ratio reflects the company's effectiveness in generating profits from its total invested capital, showing a recovery from the dip in 2022.
4. Return on equity (ROE) also saw fluctuations, starting at 35.15% in 2020, dropping to a low of 2.35% in 2022, falling into negative territory at -0.92% in 2023, and then recovering to 19.63% in 2024. This indicates varying profitability levels for common shareholders over the years, with a notable recovery in 2024.
Overall, Upbound Group Inc.'s profitability ratios demonstrate a mix of volatility and resilience, with varying levels of performance in generating profits from different perspectives such as operating assets, total assets, total capital, and shareholder equity.