Cactus Inc (WHD)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 38.63% | 37.04% | 35.22% | 27.69% | 32.02% |
| Operating profit margin | 25.63% | 24.10% | 25.39% | 17.20% | 20.09% |
| Pretax margin | 26.49% | 23.92% | 25.65% | 17.13% | 20.14% |
| Net profit margin | 16.41% | 15.42% | 16.01% | 15.38% | 16.99% |
Cactus Inc's profitability ratios have shown some fluctuations over the past five years. The gross profit margin has generally improved, starting at 32.02% in 2020 and reaching 38.63% in 2024, indicating that the company has become more efficient in managing its cost of goods sold.
The operating profit margin has also shown an overall positive trend, with a peak of 25.63% in 2024, compared to 20.09% in 2020. This indicates that Cactus Inc has been effective in controlling its operating expenses while generating revenue.
Similarly, the pretax margin has increased from 20.14% in 2020 to 26.49% in 2024. This suggests that the company has been successful in managing its operating costs, interest expenses, and other non-operating expenses while maximizing its pre-tax earnings.
Lastly, the net profit margin, representing actual profitability after all expenses, has fluctuated slightly over the years, with a slight increase from 16.99% in 2020 to 16.41% in 2024. This indicates that Cactus Inc has maintained a relatively stable level of profitability despite variations in other profitability ratios.
Overall, Cactus Inc has shown improvements in its profitability margins over the years, demonstrating effective cost management and revenue generation strategies.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 16.65% | 17.36% | 15.62% | 7.68% | 8.59% |
| Return on assets (ROA) | 10.66% | 11.11% | 9.85% | 6.87% | 7.26% |
| Return on total capital | 28.15% | 31.50% | 25.78% | 12.68% | 13.05% |
| Return on equity (ROE) | 17.31% | 19.55% | 15.51% | 11.34% | 10.75% |
Cactus Inc's profitability ratios show a generally positive trend over the years.
- The Operating Return on Assets (Operating ROA) ratio has fluctuated slightly, with a decrease from 8.59% in 2020 to 7.68% in 2021, followed by significant increases to 15.62% in 2022, 17.36% in 2023, and 16.65% in 2024. This suggests that the company's operating performance relative to its assets has improved significantly in recent years.
- The Return on Assets (ROA) ratio has also exhibited a positive trend, increasing from 7.26% in 2020 to 10.66% in 2024. This indicates improved efficiency in generating profits from the assets held by the company.
- The Return on Total Capital ratio has shown significant growth, more than doubling from 13.05% in 2020 to 28.15% in 2024. This indicates that the company has been generating higher returns relative to the total capital invested, reflecting improved profitability and capital efficiency.
- The Return on Equity (ROE) ratio has also demonstrated a positive trajectory, increasing from 10.75% in 2020 to 17.31% in 2024. This suggests that the company has been successful in generating higher returns for its equity shareholders over the years.
Overall, Cactus Inc's profitability ratios indicate improving profitability, efficiency, and returns for both assets and equity holders, reflecting positively on the company's financial performance and management decisions.