Wabash National Corporation (WNC)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 13.62% | 19.64% | 12.90% | 10.90% | 10.78% |
| Operating profit margin | -18.29% | 12.30% | 6.66% | 2.88% | 1.39% |
| Pretax margin | -19.35% | 11.62% | 5.85% | 0.07% | -7.37% |
| Net profit margin | -14.59% | 9.12% | 4.49% | 0.06% | -6.57% |
Wabash National Corporation's profitability ratios show fluctuations over the years. The gross profit margin increased steadily from 10.78% in December 31, 2020, to 19.64% in December 31, 2023, but then decreased to 13.62% by December 31, 2024. This indicates the company's ability to generate profits from its core business operations.
Similarly, the operating profit margin improved from 1.39% in December 31, 2020, to 12.30% in December 31, 2023, but then significantly declined to -18.29% by December 31, 2024, suggesting potential issues with the company's operational efficiency and cost management.
The pretax margin also followed an upward trend from -7.37% in December 31, 2020, to 11.62% in December 31, 2023, before dropping to -19.35% by December 31, 2024. This indicates fluctuations in the company's profitability before taxes, possibly influenced by various external factors.
Furthermore, the net profit margin improved from -6.57% in December 31, 2020, to 9.12% in December 31, 2023, but then declined to -14.59% by December 31, 2024, indicating that the company's bottom line profitability was impacted negatively in the last year covered.
Overall, while the gross profit margin showed some improvement, the operating, pretax, and net profit margins displayed more significant fluctuations, indicating challenges in maintaining consistent profitability and efficiency over the years.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -25.23% | 22.89% | 13.85% | 4.70% | 1.77% |
| Return on assets (ROA) | -20.13% | 16.97% | 9.33% | 0.11% | -8.39% |
| Return on total capital | -188.93% | 56.77% | 42.07% | 7.50% | -21.00% |
| Return on equity (ROE) | -150.44% | 42.08% | 28.23% | 0.36% | -24.06% |
Based on the profitability ratios of Wabash National Corporation, the company's performance has shown considerable fluctuations over the years.
1. Operating Return on Assets (Operating ROA):
- The Operating ROA has improved significantly from 1.77% in 2020 to 22.89% in 2023, indicating that the company has been more efficient in generating profits from its operations.
- However, there was a sharp decline in 2024 to -25.23%, suggesting potential issues with operational efficiency or profitability.
2. Return on Assets (ROA):
- The ROA has also experienced fluctuations, ranging from a negative -8.39% in 2020 to a positive 16.97% in 2023.
- The negative figure in 2024 (-20.13%) suggests that the company's asset utilization and profitability were not optimal during that period.
3. Return on Total Capital:
- The Return on Total Capital has been volatile, starting from -21.00% in 2020 and reaching 56.77% in 2023.
- The drastic drop to -188.93% in 2024 highlights potential challenges in effectively utilizing the total capital employed in the business.
4. Return on Equity (ROE):
- The ROE has also shown significant variability, with a low of -24.06% in 2020 and a high of 42.08% in 2023.
- The negative ROE of -150.44% in 2024 indicates that the company's ability to generate returns for its equity holders was severely impacted.
In conclusion, while Wabash National Corporation has demonstrated improvements in certain profitability metrics over the years, the significant fluctuations and negative figures in some ratios, particularly in 2024, suggest the need for further analysis into the company's operational and financial performance.