Verra Mobility Corp (VRRM)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 97.84% | 94.68% | 93.63% | 93.62% | 91.48% |
| Operating profit margin | 15.47% | 23.10% | 22.21% | 20.32% | 9.61% |
| Pretax margin | 9.00% | 10.64% | 17.14% | 12.33% | 0.50% |
| Net profit margin | 3.58% | 6.98% | 12.47% | 7.53% | -0.88% |
Based on the data provided for Verra Mobility Corp's profitability ratios, we observe the following trends:
1. Gross Profit Margin:
- The gross profit margin has shown a consistent increase over the years, from 91.48% in December 2020 to 97.84% in December 2024. This indicates the company's ability to effectively manage its production costs and generate higher profits from its core operations.
2. Operating Profit Margin:
- The operating profit margin exhibited a significant improvement from 9.61% in December 2020 to 22.21% in December 2022, before slightly declining to 15.47% by December 2024. This suggests that the company has been successful in increasing efficiency in its day-to-day business activities, leading to higher operating profits.
3. Pretax Margin:
- The pretax margin saw a notable increase from 0.50% in December 2020 to 17.14% in December 2022, before decreasing to 9.00% by December 2024. This trend implies fluctuations in the company's profitability before taxes, possibly due to changes in expenses or non-operating income.
4. Net Profit Margin:
- The net profit margin also experienced fluctuations, with an improvement from -0.88% in December 2020 to 12.47% in December 2022, followed by a decline to 3.58% by December 2024. This metric reflects the company's ability to turn its revenue into profits after considering all expenses, taxes, and other costs.
In summary, Verra Mobility Corp has demonstrated a strong gross profit margin and improvements in its operating and pretax margins over the years. However, the net profit margin has shown some volatility, indicating fluctuations in the company's bottom-line profitability. Monitoring these profitability ratios can provide insights into Verra Mobility Corp's financial performance and efficiency in managing its operations.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.43% | 10.55% | 9.38% | 6.09% | 2.77% |
| Return on assets (ROA) | 1.95% | 3.19% | 5.27% | 2.26% | -0.25% |
| Return on total capital | 57.71% | 41.39% | 85.48% | 43.31% | 12.04% |
| Return on equity (ROE) | 11.86% | 13.53% | 40.02% | 15.94% | -0.99% |
The profitability ratios of Verra Mobility Corp show a positive trend over the years analyzed.
- Operating return on assets (Operating ROA) has demonstrated steady improvement, increasing from 2.77% in December 2020 to 8.43% in December 2024, indicating the company's ability to generate operating profits relative to its assets has been getting stronger.
- Return on assets (ROA) has also shown a positive trajectory, starting at -0.25% in December 2020 and reaching 1.95% by December 2024. This ratio indicates the overall efficiency in using assets to generate profits.
- Return on total capital has been fluctuating but generally increasing over the years, with a significant spike to 85.48% in December 2022 before stabilizing at 57.71% by December 2024. This metric reflects how effectively the company is utilizing all its capital to generate returns.
- Return on equity (ROE) has experienced both peaks and valleys throughout the years, with the highest value of 40.02% in December 2022 and the lowest 11.86% in December 2024. ROE measures how well the company is generating returns on the shareholders' equity investment.
Overall, the positive trends in these profitability ratios indicate that Verra Mobility Corp has been effectively managing its assets, capital, and equity to generate satisfactory returns for its stakeholders over the analyzed period.