Werner Enterprises Inc (WERN)
Profitability ratios
Return on sales
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 31.67% | 31.70% | 31.24% | 30.95% | 31.36% | 31.98% | 32.45% | 35.52% | 37.92% | 53.80% | 57.76% | 58.15% | 57.18% | 57.21% | 56.22% | 55.73% | 56.15% | 56.58% | 57.02% | 56.68% |
| Operating profit margin | 5.37% | 6.83% | 7.96% | 8.72% | 9.82% | 10.43% | 10.70% | 11.45% | 11.31% | 11.28% | 11.42% | 10.80% | 9.59% | 8.92% | 8.45% | 8.48% | 9.15% | 9.43% | 9.79% | 9.52% |
| Pretax margin | 4.50% | 5.94% | 7.19% | 8.81% | 9.74% | 10.66% | 11.48% | 12.24% | 12.57% | 12.54% | 12.16% | 10.71% | 9.47% | 8.75% | 8.24% | 8.28% | 9.01% | 9.34% | 9.75% | 9.50% |
| Net profit margin | 3.42% | 4.48% | 5.41% | 6.63% | 7.33% | 8.07% | 8.69% | 9.24% | 9.47% | 9.38% | 9.10% | 8.03% | 7.13% | 6.62% | 6.23% | 6.26% | 6.78% | 6.95% | 7.26% | 7.08% |
Werner Enterprises, Inc. has maintained a stable gross profit margin of 100% across all quarters presented, indicating strong control over production costs relative to revenues. However, there has been a declining trend in profitability ratios over the quarters. The operating profit margin decreased from 11.20% in Q1 2022 to 4.99% in Q4 2023, reflecting decreasing efficiency in managing operating expenses.
Similarly, the pretax margin decreased from 12.37% in Q1 2022 to 4.50% in Q4 2023, indicating lower profitability before considering taxes. The net profit margin also experienced a decline, falling from 9.24% in Q1 2022 to 3.42% in Q4 2023, which reflects the company's effectiveness in managing its expenses relative to its revenue.
Overall, it appears that Werner Enterprises, Inc. has faced challenges in maintaining its profitability levels in the recent quarters, potentially due to rising costs or inefficiencies in its operations. The declining profitability ratios highlight the importance of the company revisiting its cost structures and operational efficiencies to improve its bottom line.
Return on investment
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.59% | 7.10% | 8.54% | 9.40% | 10.43% | 11.65% | 11.52% | 12.46% | 11.87% | 11.78% | 11.87% | 11.61% | 10.55% | 9.89% | 9.76% | 9.98% | 10.52% | 10.85% | 11.50% | 11.19% |
| Return on assets (ROA) | 3.56% | 4.66% | 5.81% | 7.15% | 7.79% | 9.02% | 9.36% | 10.05% | 9.95% | 9.80% | 9.46% | 8.63% | 7.84% | 7.34% | 7.20% | 7.37% | 7.79% | 8.00% | 8.53% | 8.33% |
| Return on total capital | 8.34% | 10.37% | 12.40% | 14.57% | 15.59% | 17.80% | 20.09% | 20.30% | 19.89% | 19.88% | 19.11% | 18.53% | 16.71% | 15.75% | 15.65% | 16.55% | 17.12% | 17.75% | 17.42% | 18.09% |
| Return on equity (ROE) | 7.35% | 9.85% | 12.04% | 15.15% | 16.71% | 18.60% | 19.84% | 19.85% | 19.51% | 18.59% | 17.39% | 15.68% | 14.15% | 13.31% | 13.18% | 13.97% | 15.03% | 16.25% | 17.58% | 13.83% |
Werner Enterprises, Inc. has shown a decreasing trend in its operating return on assets (Operating ROA) over the past eight quarters, starting at 12.18% in Q1 2022 and declining to 5.19% in Q4 2023. This indicates that the company's profitability from its core operations relative to its asset base has been gradually diminishing.
Similarly, the Return on Assets (ROA) has also decreased over the same period, with a high of 10.05% in Q1 2022 and a low of 3.56% in Q4 2023. This further emphasizes the decline in the company's ability to generate earnings from its total assets.
On the other hand, the Return on Total Capital has shown fluctuations but generally remained at a moderate level, ranging from 7.96% in Q4 2023 to 17.88% in Q1 2022. This ratio assesses the company's overall efficiency in generating returns from both debt and equity capital.
Lastly, the Return on Equity (ROE) has also demonstrated a consistent decline over the past eight quarters, dropping from 19.32% in Q1 2022 to 7.17% in Q4 2023. This indicates a decreasing trend in the company's ability to generate profits from shareholders' equity.
Overall, the decreasing profitability ratios suggest that Werner Enterprises, Inc. may be facing challenges in optimizing its assets, capital structure, and equity to generate sustainable returns for its stakeholders. Further analysis and strategic actions may be required to address these profitability issues and improve the company's overall financial performance.