Whirlpool Corporation (WHR)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 16.69% | 17.34% | 20.12% | 19.93% | 16.99% |
| Operating profit margin | 5.34% | -5.96% | 10.71% | 8.38% | 7.49% |
| Pretax margin | 2.94% | -7.08% | 10.50% | 7.56% | 7.33% |
| Net profit margin | 2.53% | -8.57% | 8.14% | 5.58% | 5.65% |
Whirlpool Corp.'s profitability ratios have shown fluctuations over the past five years.
The Gross Profit Margin has ranged from 15.58% to 20.05% during this period, with a slight increase to 16.29% in 2023. This ratio indicates that the company is able to effectively manage its production costs and generate profits from its core operations.
The Operating Profit Margin has also varied, ranging from 6.18% to 10.38%, with a decrease to 5.84% in 2023. This ratio reflects the company's ability to control its operating expenses and generate profit from its operations after accounting for all variable and fixed costs.
The Pretax Margin has been erratic, with a notable improvement in 2023 to 2.90%, following a negative figure in 2022. This ratio highlights the company's ability to manage its overall financial performance before accounting for taxes, and the recent positive trend suggests potentially improved financial health.
The Net Profit Margin has fluctuated between -7.70% and 8.11% over the analyzed period, with a notable recovery to 2.47% in 2023. This ratio indicates the company's profitability after all expenses, including interest and taxes, have been deducted, showing Whirlpool Corp.'s ability to generate profit from its business activities.
Overall, while there have been fluctuations in Whirlpool Corp.'s profitability ratios, the recent improvements in Gross Profit Margin, Pretax Margin, and Net Profit Margin in 2023 suggest a potentially positive trend towards stronger financial performance.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.86% | -6.17% | 11.58% | 7.90% | 8.16% |
| Return on assets (ROA) | 2.78% | -8.87% | 8.79% | 5.26% | 6.16% |
| Return on total capital | 10.36% | -10.97% | 25.33% | 18.40% | 23.22% |
| Return on equity (ROE) | 20.36% | -65.03% | 36.79% | 27.67% | 36.56% |
Whirlpool Corp.'s profitability ratios reflect varying trends over the past five years.
1. Operating Return on Assets (Operating ROA): This ratio indicates that Whirlpool's ability to generate operating income from its assets has slightly declined from 7.11% in 2022 to 6.57% in 2023. While the 2023 figure is lower, it is still within a reasonable range.
2. Return on Assets (ROA): The ROA metric shows a significant improvement from a negative figure in 2022 to a positive 2.78% in 2023, reflecting an enhanced ability to generate profits relative to its total assets.
3. Return on Total Capital: This ratio demonstrates a consistent performance with a slight decrease in 2023 compared to the previous year. At 11.56%, the return on total capital shows a solid performance in utilizing the company's total capital to generate profits.
4. Return on Equity (ROE): Whirlpool Corp.'s return on equity has bounced back from a substantial negative figure in 2022 to a positive 20.36% in 2023. The company's ability to generate profits from shareholders' equity has significantly improved in the most recent period.
In conclusion, while there are minor fluctuations, Whirlpool Corp.'s profitability ratios generally indicate a positive trend in generating returns from its assets, total capital, and shareholder equity, particularly with notable improvements in ROA and ROE from 2022 to 2023.