WESCO International Inc (WCC)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 21.60% | 21.64% | 21.76% | 20.82% | 18.88% |
| Operating profit margin | 5.61% | 6.28% | 6.71% | 4.40% | 2.82% |
| Pretax margin | 4.36% | 4.43% | 5.31% | 3.19% | 1.00% |
| Net profit margin | 3.03% | 3.42% | 4.02% | 2.55% | 0.82% |
WESCO International Inc has demonstrated a positive trend in its profitability ratios over the past five years. The Gross Profit Margin has steadily increased from 18.88% in 2020 to 21.60% in 2024, indicating an improvement in the efficiency of the company's cost of goods sold and pricing strategy.
Similarly, the Operating Profit Margin has shown a consistent growth trajectory, rising from 2.82% in 2020 to 5.61% in 2024. This suggests that WESCO International Inc has been able to manage its operating expenses more effectively while generating higher revenues.
The Pretax Margin has also seen a positive trend, increasing from 1.00% in 2020 to 4.36% in 2024. This indicates an enhancement in the company's ability to generate profits before accounting for taxes, reflecting improved operational performance and cost management.
Lastly, the Net Profit Margin has shown a favorable progression from 0.82% in 2020 to 3.03% in 2024. This indicates that WESCO International Inc has been successful in translating its revenues into net income after accounting for all expenses, including taxes.
Overall, the improving profitability ratios of WESCO International Inc over the years suggest that the company has been effectively managing its costs, enhancing its operational efficiency, and generating higher profits, which is a positive sign for investors and stakeholders.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.12% | 9.34% | 9.71% | 6.36% | 2.92% |
| Return on assets (ROA) | 4.38% | 5.08% | 5.81% | 3.69% | 0.85% |
| Return on total capital | 26.47% | 27.42% | 32.16% | 22.51% | 10.47% |
| Return on equity (ROE) | 13.28% | 15.20% | 19.34% | 12.32% | 3.01% |
WESCO International Inc's profitability ratios have shown an upward trend over the past five years. The Operating return on assets (Operating ROA) has increased from 2.92% in 2020 to 8.12% in 2024, indicating that the company is becoming more efficient in generating operating profits from its assets.
Similarly, the Return on assets (ROA) has also improved from 0.85% in 2020 to 4.38% in 2024, reflecting the company's ability to generate higher profits relative to its total assets.
The Return on total capital has shown significant growth, increasing from 10.47% in 2020 to 26.47% in 2024. This indicates that the company is effectively utilizing both equity and debt to generate returns for its capital providers.
Lastly, the Return on equity (ROE) has seen a steady increase from 3.01% in 2020 to 13.28% in 2024, demonstrating the company's ability to generate higher returns for its shareholders over the years.
Overall, WESCO International Inc's profitability ratios show a positive trend, indicating improved efficiency and effective utilization of assets and capital to generate profits for the company and its shareholders.