Vulcan Materials Company (VMC)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 25.04% | 21.29% | 24.74% | 26.39% | 25.48% |
| Operating profit margin | 18.34% | 13.01% | 18.21% | 18.44% | 17.80% |
| Pretax margin | 15.84% | 10.51% | 15.69% | 15.24% | 15.27% |
| Net profit margin | 11.99% | 7.87% | 12.08% | 12.03% | 12.53% |
Vulcan Materials Co has shown a steady improvement in its profitability ratios over the past five years. The gross profit margin has increased from 21.29% in 2019 to 25.04% in 2023, indicating the company's ability to control its cost of goods sold and generate more profit from its sales.
Similarly, the operating profit margin has also improved from 13.79% in 2019 to 17.72% in 2023, reflecting efficient management of operating expenses and higher operational efficiency.
The pretax margin has fluctuated over the years but showed a significant increase in 2023 to 16.00%, reflecting better control over non-operating expenses and potentially lower taxes.
The net profit margin has also shown an upward trend, reaching 11.99% in 2023 from 7.87% in 2019, indicating that the company is effectively managing its overall expenses, including interest payments and taxes, to generate bottom-line profits.
Overall, the improving profitability ratios suggest that Vulcan Materials Co is effectively managing its operations and costs, which bodes well for its financial performance and sustainability in the long run.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.81% | 6.68% | 7.39% | 7.66% | 8.24% |
| Return on assets (ROA) | 6.42% | 4.04% | 4.90% | 5.00% | 5.80% |
| Return on total capital | 12.58% | 8.68% | 9.79% | 9.96% | 10.51% |
| Return on equity (ROE) | 12.47% | 8.31% | 10.25% | 9.70% | 10.99% |
Vulcan Materials Co's profitability ratios exhibit varying trends over the past five years.
- Operating return on assets (Operating ROA) has shown improvement from 6.51% in 2021 to 9.48% in 2023, indicating that the company is generating higher operating income relative to its assets.
- Return on assets (ROA) has fluctuated between 4.04% and 6.42% during the period, with a slight increase in 2023 compared to 2022. This metric reflects how effectively the company is generating profits from its total assets.
- Return on total capital demonstrates an overall increasing trend from 8.54% in 2021 to 12.14% in 2023. This ratio indicates the company's efficiency in generating returns from both debt and equity capital invested in the business.
- Return on equity (ROE) has also shown improvement from 8.31% in 2022 to 12.47% in 2023, reflecting the company's ability to generate profits for its shareholders from the equity invested in the business.
Overall, Vulcan Materials Co's profitability ratios have generally improved over the past five years, with increasing returns on assets, total capital, and equity. This signifies better operational efficiency and profitability for the company. However, it is essential for stakeholders to continue monitoring these ratios to ensure sustained profitability and value creation for investors.