Werner Enterprises Inc (WERN)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 11.18% | 12.90% | 15.85% | 17.48% | 19.43% |
| Operating profit margin | 2.18% | 5.37% | 1.35% | 1.55% | -1.45% |
| Pretax margin | 1.40% | 4.50% | 9.87% | 12.65% | 9.47% |
| Net profit margin | 1.13% | 3.42% | 7.33% | 9.47% | 7.13% |
Werner Enterprises Inc's profitability ratios have shown a declining trend over the past five years. The gross profit margin decreased from 19.43% in 2020 to 11.18% in 2024, indicating a reduction in the percentage of revenue remaining after deducting the cost of goods sold.
Similarly, the operating profit margin fluctuated over the period, with a low of -1.45% in 2020, peaking at 5.37% in 2023, and then dropping to 2.18% in 2024. This metric reveals the company's ability to generate profits from its core operations.
The pretax margin, which reflects the company's efficiency in managing operating expenses and interest payments, declined from 9.47% in 2020 to 1.40% in 2024. This suggests a decreasing ability to generate profits before tax relative to revenue.
The net profit margin, a key indicator of overall profitability, also showed a downward trajectory from 7.13% in 2020 to 1.13% in 2024. This metric reveals the company's ability to translate revenue into net income.
Overall, Werner Enterprises Inc's profitability has weakened over the years, with decreasing margins across all key indicators. The declining trend in profitability ratios may raise concerns about the company's operational efficiency and long-term financial sustainability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 2.17% | 5.59% | 1.44% | 1.64% | -1.59% |
| Return on assets (ROA) | 1.12% | 3.56% | 7.79% | 10.00% | 7.84% |
| Return on total capital | 5.61% | 11.86% | 23.32% | 18.85% | 18.09% |
| Return on equity (ROE) | 2.35% | 7.35% | 16.71% | 19.51% | 14.15% |
Werner Enterprises Inc's profitability ratios exhibit varying trends over the five-year period from December 31, 2020, to December 31, 2024.
- Operating return on assets (Operating ROA) indicates the company's ability to generate operating income from its assets. The ratio fluctuated during the period, starting at -1.59% in 2020, reaching a peak of 5.59% in 2023, and then slightly declining to 2.17% by the end of 2024.
- Return on assets (ROA) reflects the company's overall efficiency in generating profits from its total assets. It showed a general decreasing trend from 7.84% in 2020 to 1.12% in 2024, with a significant drop in 2023 to 3.56%.
- Return on total capital measures the return generated from all forms of capital employed, including debt and equity. This ratio demonstrated a relatively stable performance with an increase from 18.09% in 2020 to a peak of 23.32% in 2022, before declining to 5.61% by the end of 2024.
- Return on equity (ROE) assesses the return generated for shareholders from their equity investments. Werner Enterprises Inc's ROE displayed a similar downward trend, starting at 14.15% in 2020 and declining to 2.35% in 2024, with a significant drop in 2023 to 7.35%.
Overall, the profitability ratios of Werner Enterprises Inc show fluctuating trends, indicating varying levels of efficiency and profitability in utilizing assets and capital over the five-year period. Further analysis may be required to understand the factors driving these changes and to assess the company's overall financial performance.