Werner Enterprises Inc (WERN)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 31.67% | 31.36% | 33.24% | 43.14% | 41.67% |
| Operating profit margin | 5.37% | 9.82% | 11.31% | 9.59% | 9.15% |
| Pretax margin | 4.50% | 9.74% | 12.57% | 9.47% | 9.01% |
| Net profit margin | 3.42% | 7.33% | 9.47% | 7.13% | 6.78% |
Werner Enterprises, Inc. has shown consistency in maintaining a high gross profit margin of 100% across the five years analyzed. However, there is a noticeable decline in the operating profit margin, which decreased from 11.31% in 2021 to 4.99% in 2023. This downward trend suggests that the company's operating expenses may have increased relative to its sales revenue over the period.
The pretax margin also exhibits a declining trend, dropping from 12.65% in 2021 to 4.50% in 2023. This indicates a decrease in the profitability of Werner Enterprises before accounting for taxes.
Similarly, the net profit margin has experienced a downward trajectory, falling from 9.47% in 2021 to 3.42% in 2023. This suggests that the company's bottom line profitability has been shrinking over the years, possibly due to increased costs or inefficiencies in operations.
Overall, the declining trend in the operating profit margin, pretax margin, and net profit margin of Werner Enterprises, Inc. raises concerns about its profitability and efficiency in generating earnings for its shareholders.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.59% | 10.43% | 11.87% | 10.55% | 10.52% |
| Return on assets (ROA) | 3.56% | 7.79% | 9.95% | 7.84% | 7.79% |
| Return on total capital | 8.34% | 15.59% | 19.89% | 16.71% | 17.12% |
| Return on equity (ROE) | 7.35% | 16.71% | 19.51% | 14.15% | 15.03% |
Werner Enterprises, Inc.'s profitability ratios have shown some fluctuations over the past five years. The operating return on assets (Operating ROA) has decreased from 11.87% in 2021 to 5.19% in 2023, indicating a decline in the company's ability to generate operating income from its assets.
Return on assets (ROA) has also shown a downward trend, decreasing from 9.95% in 2021 to 3.56% in 2023. This decline suggests that the company's overall profitability in relation to its total assets has weakened over the years.
In contrast, the return on total capital has fluctuated over the years but has generally shown a decreasing trend from 17.26% in 2021 to 7.96% in 2023. This ratio reflects the company's ability to generate returns from both equity and debt capital invested in the business.
Return on equity (ROE) has also experienced fluctuations, with a notable decrease from 19.00% in 2021 to 7.17% in 2023. This ratio indicates the company's profitability in relation to the shareholders' equity invested in the business.
Overall, the profitability ratios of Werner Enterprises, Inc. have shown mixed performance over the past five years, with some ratios showing declines while others have fluctuated. It is essential for the company to closely monitor and address the factors contributing to these changes to enhance its profitability and ensure sustainable growth in the future.