Whirlpool Corporation (WHR)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 15.79% | 16.69% | 17.34% | 20.12% | 19.93% |
| Operating profit margin | 0.87% | 5.34% | -5.96% | 10.71% | 8.38% |
| Pretax margin | -1.92% | 2.94% | -7.08% | 10.50% | 7.56% |
| Net profit margin | -1.98% | 2.53% | -8.57% | 8.14% | 5.58% |
Whirlpool Corporation's profitability ratios depict the company's ability to generate earnings relative to its revenue.
1. Gross Profit Margin: Whirlpool's gross profit margin fluctuated slightly over the years, declining from 20.12% in 2021 to 15.79% in 2024. This indicates that the company's profit after accounting for the cost of goods sold decreased.
2. Operating Profit Margin: The operating profit margin saw significant variation, with a notable dip to -5.96% in 2022, suggesting operational challenges. However, the margin recovered to 0.87% by 2024, albeit still relatively low compared to previous years.
3. Pretax Margin: Whirlpool experienced drastic swings in its pretax margin, ranging from -7.08% in 2022 to 10.50% in 2021. The negative margins in 2022 and 2024 reflect challenges impacting the company's profitability before accounting for taxes.
4. Net Profit Margin: The net profit margin also exhibited volatility, from -8.57% in 2022 to 8.14% in 2021. The negative margins in 2022 and 2024 signify that Whirlpool's profitability after deducting all expenses, including taxes, was adversely affected.
Overall, Whirlpool Corporation's profitability ratios highlight fluctuations in its ability to generate profits over the years, indicating potential challenges that may require management's attention to enhance the company's financial performance.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 0.88% | 5.86% | -6.17% | 11.58% | 7.90% |
| Return on assets (ROA) | -1.98% | 2.78% | -8.87% | 8.79% | 5.26% |
| Return on total capital | 1.92% | 10.36% | -10.97% | 25.33% | 18.40% |
| Return on equity (ROE) | -12.04% | 20.36% | -65.03% | 36.79% | 27.67% |
Based on the provided data, Whirlpool Corporation's profitability ratios exhibit some fluctuation over the years:
1. Operating return on assets (Operating ROA) improved from 7.90% in 2020 to 11.58% in 2021 but turned negative at -6.17% in 2022. It recovered to 5.86% in 2023 but decreased to 0.88% in 2024. This indicates some variation in the company's ability to generate operating profits from its assets.
2. Return on assets (ROA) increased from 5.26% in 2020 to 8.79% in 2021 before dropping to -8.87% in 2022. It then improved to 2.78% in 2023 but fell to -1.98% in 2024. The negative values in 2022 and 2024 suggest that the company had challenges in generating profits from its total assets during those years.
3. Return on total capital peaked at 25.33% in 2021 but significantly dropped to -10.97% in 2022. It recovered to 10.36% in 2023 before declining to 1.92% in 2024. These figures reflect the fluctuating efficiency of Whirlpool in generating returns from its total capital employed.
4. Return on equity (ROE) had the most significant fluctuations, starting at 27.67% in 2020, reaching 36.79% in 2021, and then falling sharply to -65.03% in 2022. It increased to 20.36% in 2023 but decreased to -12.04% in 2024. The negative ROE values in 2022 and 2024 indicate challenges in generating profits for the company's shareholders.
Overall, the analysis suggests that Whirlpool Corporation experienced varying degrees of profitability performance across the years, with some years showing strong profitability metrics and others indicating challenges in generating returns for its assets, total capital, and shareholders.