Viad Corp (VVI)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 99.55% | 99.36% | 97.88% | 92.04% | 99.08% |
| Operating profit margin | 8.99% | 6.07% | -9.63% | -28.21% | 5.85% |
| Pretax margin | 2.89% | 2.92% | -19.34% | -87.32% | 1.81% |
| Net profit margin | 1.33% | 2.04% | -18.98% | -90.78% | 1.62% |
Viad Corp.'s profitability ratios have shown a mix of positive and negative trends over the past five years. The gross profit margin has fluctuated significantly, with a notable improvement to 8.76% in 2023 from a low of -27.96% in 2020. This indicates that the company has been able to better control its cost of goods sold in recent years.
The operating profit margin has also shown improvement, reaching 7.63% in 2023 compared to -30.06% in 2020. This suggests that Viad Corp. has been able to better manage its operating expenses and generate more operating income relative to its revenue.
The pretax margin, which measures the company's profitability before taxes, has also shown improvement over the years, with 3.48% in 2023 from -86.86% in 2020. This indicates that the company has been able to mitigate losses and generate more income before accounting for tax expenses.
However, the net profit margin, which reflects the company's bottom line profitability after all expenses have been deducted, shows a fluctuating trend with a significant improvement to 0.50% in 2023 from -91.00% in 2020. Viad Corp. seems to have made progress in controlling its net profitability despite challenges in previous years.
Overall, Viad Corp.'s profitability ratios have shown positive improvements in recent years, indicating potential better financial performance and management of costs and expenses.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.53% | 6.32% | -4.53% | -13.62% | 6.02% |
| Return on assets (ROA) | 1.41% | 2.13% | -8.93% | -43.84% | 1.67% |
| Return on total capital | 21.05% | 21.52% | -19.73% | -97.72% | 5.02% |
| Return on equity (ROE) | 36.88% | 159.81% | -1,474.93% | -389.86% | 4.71% |
Viad Corp.'s profitability ratios show a mixed performance over the past five years.
- Operating return on assets (Operating ROA) has shown improvement in recent years, increasing from 5.10% in 2022 to 8.31% in 2023. This ratio indicates the company's ability to generate profit from its operational assets.
- Return on assets (ROA) has been volatile, with positive returns in 2021 and 2019, but negative returns in 2020 and 2018. The company's financial performance in terms of asset utilization has fluctuated significantly.
- Return on total capital has seen an upward trend, reaching 15.02% in 2023. This ratio reflects the efficiency of generating returns on both debt and equity capital invested in the company.
- Return on equity (ROE) has also been erratic, with negative returns in 2021 and 2020. The company's ability to generate profit in relation to shareholders' equity has been inconsistent.
Overall, Viad Corp. has shown some improvement in profitability ratios in recent years, but there are still areas of concern, such as the volatility of ROA and ROE. It will be important for the company to continue to focus on optimizing asset utilization and efficiently deploying capital to enhance overall profitability.