Verra Mobility Corp (VRRM)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | -171.52% | -186.14% | 717.16% | 1,907.71% | 52.39% |
| Operating profit margin | 182.31% | 174.63% | 279.83% | 284.29% | 24.86% |
| Pretax margin | 84.00% | 134.77% | 169.85% | 6.41% | 7.90% |
| Net profit margin | 55.05% | 98.05% | 103.68% | -34.42% | 4.40% |
Verra Mobility Corp's profitability ratios demonstrate a generally stable trend over the past five years. The gross profit margin has remained consistently high, ranging from 91.48% to 95.66%, indicating the company effectively manages its production costs relative to revenues.
The operating profit margin has shown some variation, with a significant increase in 2023 to 23.10% compared to the previous years, suggesting improved efficiency in managing operating expenses. The pretax margin also saw fluctuations, with a notable decline in 2020 followed by a recovery in subsequent years, reaching 10.64% in 2023.
The net profit margin reflects the company's bottom-line profitability after accounting for all expenses, showing a recovery from negative figures in 2020 to 6.98% in 2023. Overall, Verra Mobility Corp's profitability ratios indicate a solid performance, with a focus on maintaining high gross profit margins and improving operational efficiency 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) | 10.55% | 9.38% | 6.09% | 2.77% | 6.85% |
| Return on assets (ROA) | 3.19% | 5.27% | 2.26% | -0.33% | 1.21% |
| Return on total capital | 11.97% | 13.83% | 7.69% | 3.63% | 7.97% |
| Return on equity (ROE) | 13.53% | 40.02% | 15.94% | -1.45% | 5.52% |
Based on the provided data, we can analyze the profitability ratios of Verra Mobility Corp over the last five years.
1. Operating Return on Assets (Operating ROA):
- Verra Mobility's Operating ROA has been increasing steadily over the past five years, from 2.77% in 2020 to 10.55% in 2023. This indicates that the company has been able to generate more operating income relative to its total assets, showing improved operational efficiency.
2. Return on Assets (ROA):
- The ROA fluctuated over the years, with a significant improvement from -0.33% in 2020 to 3.19% in 2023. This ratio reflects the company's ability to generate profits from its assets. The positive trend indicates better asset utilization and profitability.
3. Return on Total Capital:
- Verra Mobility's Return on Total Capital has also been on an upward trajectory, increasing from 3.27% in 2020 to 12.94% in 2023. This demonstrates the company's effectiveness in generating returns on both equity and debt capital invested in the business.
4. Return on Equity (ROE):
- The ROE shows a mix of results over the years, with a notable decline in 2020 and a subsequent recovery. The ROE improved from -1.45% in 2020 to 13.53% in 2023. This ratio highlights how well the company is utilizing shareholders' equity to generate profits.
Overall, the profitability ratios suggest an improving trend for Verra Mobility Corp, indicating enhanced operational efficiency, better asset utilization, and improved returns for both equity and capital providers.