Cactus Inc (WHD)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 85.24% | 88.97% | 87.47% | 84.84% | 90.18% |
| Operating profit margin | 24.23% | 25.24% | 17.22% | 20.03% | 29.08% |
| Pretax margin | 19.87% | 20.45% | 13.07% | 12.99% | 18.68% |
| Net profit margin | 15.51% | 15.91% | 11.32% | 9.85% | 13.59% |
Cactus Inc's profitability ratios reflect its ability to generate earnings relative to its revenue and operating costs. Over the past five years, the company's gross profit margin has ranged from 84.84% to 90.18%, indicating a relatively stable level of profitability after accounting for the cost of goods sold.
The operating profit margin, which measures efficiency in managing operating expenses, has shown fluctuations between 17.22% and 29.08%. The decrease in 2021 suggests that the company may have experienced challenges in controlling its operating costs, which improved in 2023 based on the higher operating profit margin.
The pretax margin, representing profitability before taxes, has ranged from 12.99% to 20.45%. This metric indicates the company's ability to generate profits after considering all operating expenses but before accounting for tax implications. The upward trend in pretax margin from 2020 to 2023 suggests improved operational efficiency and cost management.
Cactus Inc's net profit margin, which reflects the company's bottom-line profitability after all expenses, has varied between 9.85% and 15.91%. The net profit margin demonstrates the company's ability to translate revenue into profits, and the continuous improvement in this ratio signals a positive trend in overall profitability over the years.
Overall, Cactus Inc has maintained relatively strong profitability ratios, with improvements in operating and net profit margins over the years. However, the company should continue to focus on managing costs efficiently and enhancing profitability to ensure sustained financial success.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 17.36% | 15.62% | 7.68% | 8.59% | 21.94% |
| Return on assets (ROA) | 11.11% | 9.85% | 5.05% | 4.22% | 10.25% |
| Return on total capital | 30.54% | 30.55% | 16.09% | 19.84% | 55.93% |
| Return on equity (ROE) | 19.55% | 19.26% | 10.58% | 9.76% | 26.14% |
Cactus Inc's profitability ratios have exhibited fluctuating trends over the past five years.
1. Operating return on assets (Operating ROA) has shown an increasing trend from 2019 to 2023, indicating the company's ability to generate operating income relative to its total assets. The ratio increased from 21.94% in 2019 to 17.36% in 2023, reflecting improvements in operational efficiency.
2. Return on assets (ROA) demonstrates the company's overall profitability in relation to its total assets. The ratio increased from 10.25% in 2019 to 11.11% in 2023, indicating that Cactus Inc has been able to generate more profit per dollar of assets over the years.
3. Return on total capital measures the return earned on the total capital employed in the business. The ratio has been volatile, decreasing from 55.93% in 2019 to 30.54% in 2023. This suggests that the company's ability to generate returns on its total funding has fluctuated significantly over the period.
4. Return on equity (ROE) reflects the return earned on shareholders' equity. Cactus Inc's ROE has shown an increasing trend from 2019 to 2023, rising from 26.14% to 19.55%. This indicates that the company has been more efficient in generating profits from the equity invested by shareholders.
Overall, Cactus Inc's profitability ratios demonstrate a mix of improving operational efficiency and profitability, with some fluctuations in the return on total capital. Investors and stakeholders may find these trends insightful when evaluating the company's financial performance and potential for future growth.