Willscot Mobile Mini Holdings Corp A (WSC)
Profitability ratios
Return on sales
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 53.51% | 53.58% | 53.65% | 54.33% | 55.63% | 56.41% | 56.30% | 55.23% | 54.43% | 53.31% | 52.81% | 52.77% | 51.64% | 51.10% | 50.92% | 50.53% | 49.91% | 48.26% | 43.91% | 39.89% |
| Operating profit margin | 16.73% | 16.97% | 17.02% | 25.85% | 27.31% | 28.48% | 28.49% | 27.47% | 25.99% | 24.28% | 22.65% | 21.15% | 19.35% | 19.01% | 18.41% | 15.06% | 15.13% | 13.36% | 10.88% | 12.88% |
| Pretax margin | 1.02% | 1.53% | 1.65% | 10.58% | 18.23% | 19.81% | 20.36% | 20.01% | 19.11% | 17.84% | 16.67% | 15.27% | 13.23% | 11.07% | 10.09% | 3.73% | 2.49% | 1.49% | -2.52% | 1.86% |
| Net profit margin | 0.63% | 1.17% | 1.05% | 7.77% | 13.48% | 14.46% | 14.59% | 14.35% | 13.74% | 12.98% | 12.86% | 12.38% | 10.46% | 8.45% | 7.30% | 5.03% | 5.12% | 5.17% | 2.82% | 1.71% |
Analyzing the profitability ratios of Willscot Mobile Mini Holdings Corp A from June 2020 through March 2025 reveals a pattern of generally improving profitability margins during the initial period, followed by some fluctuations and declines in recent quarters.
The Gross Profit Margin demonstrates a sustained upward trend, increasing from 39.89% as of June 2020 to approximately 56.41% by December 2023. This indicates that the company has been able to maintain and enhance its core profitability at the gross level, likely through operational efficiencies, pricing strategies, or cost control measures. The margin peaks around the end of 2023 before slightly declining to 55.63% in March 2024 and further to approximately 53.58% by December 2024, suggesting some compression in gross profitability in the most recent periods.
Operating Profit Margin follows a generally upward trajectory from 12.88% in June 2020 to a peak of 28.49% in September 2023. This growth signifies effective management of operating expenses relative to revenues and suggests an improving operational efficiency and possibly favorable market conditions during this period. However, a decline is observed thereafter, with the margin decreasing to about 16.97% by December 2024. The significant reduction indicates increased operating costs or decreased revenue margins affecting operational profitability.
Pretax Margin reflects a similar trend, starting from a low point of 1.86% in June 2020, with negative margins in some quarters, and peaking at 20.36% in September 2023. Post this peak, the pretax margin declines sharply, reaching approximately 1.53% in December 2024, highlighting increased costs, lower earnings before tax, or other financial pressures impacting profitability.
Net Profit Margin, which accounts for all expenses, taxes, and extraordinary items, exhibits growth from approximately 1.71% in June 2020 to a high of 14.59% in September 2023. Nevertheless, this margin shows a downward trend thereafter, shrinking to roughly 0.63% by March 2025. The diminishing net profitability in recent periods suggests that factors such as rising costs, tax expenses, or other non-operational charges are eroding bottom-line results.
Overall, the financial data indicates that Willscot Mobile Mini Holdings Corp A experienced a period of strong and consistent profitability growth from mid-2020 to late 2023, with margins improving across all metrics. However, recent quarters reflect a reversal of this trend, with margins contracting significantly. This shift could be due to increased operating or capital costs, market challenges, or other factors impacting profit sustainability. The company’s ability to maintain or improve profitability ratios in subsequent periods will be crucial for assessing its ongoing financial health and competitive positioning.
Return on investment
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.64% | 6.74% | 6.78% | 10.29% | 10.55% | 10.97% | 10.99% | 11.25% | 10.85% | 9.52% | 8.62% | 7.43% | 6.54% | 6.24% | 5.92% | 4.72% | 4.20% | 3.28% | 2.32% | 3.88% |
| Return on assets (ROA) | 0.25% | 0.47% | 0.42% | 3.10% | 5.21% | 5.57% | 5.63% | 5.88% | 5.74% | 5.09% | 4.90% | 4.35% | 3.53% | 2.77% | 2.35% | 1.57% | 1.42% | 1.27% | 0.60% | 0.52% |
| Return on total capital | 25.97% | 26.82% | 25.83% | 39.95% | 49.37% | 53.40% | 50.85% | 44.73% | 37.79% | 33.29% | 13.57% | 9.46% | 3.02% | -1.66% | 9.19% | 0.65% | 2.51% | 1.97% | -0.54% | 12.96% |
| Return on equity (ROE) | 1.48% | 2.76% | 2.39% | 15.59% | 24.38% | 27.10% | 26.05% | 23.37% | 20.57% | 18.95% | 16.92% | 14.65% | 10.52% | 8.02% | 6.77% | 4.37% | 3.92% | 3.30% | 1.61% | 2.56% |
Willscot Mobile Mini Holdings Corp A demonstrates a generally positive trend in its profitability ratios over the period analyzed, with some fluctuations indicating periods of growth and contraction.
Operating Return on Assets (Operating ROA):
This ratio shows an upward trajectory from 3.88% as of June 30, 2020, to a peak of approximately 11.25% on June 30, 2023. After reaching this apex, a slight decline is observed, with the figure settling around 6.64% as of March 31, 2025. The steady increase from mid-2020 through mid-2023 signifies improving operational efficiency and better asset utilization. The decline thereafter may suggest operational challenges or changes in asset composition impacting profitability.
Return on Assets (ROA):
The ROA follows a similar upward trend, albeit at a much lower level compared to Operating ROA, indicating that the company's net income relative to total assets has improved from approximately 0.52% in June 2020 to around 5.88% by June 2023. However, recent figures show a marked decrease, with the ROA diminishing toward 0.25% at March 31, 2025. The significant fluctuations highlight periods of increased and decreased net profitability, with recent data indicating contraction potentially driven by rising expenses, asset impairments, or other operating factors.
Return on Total Capital:
This ratio displays notable volatility but overall suggests periods of strong profitability, especially between 2021 and 2023, when the ratio surpassed 33%, signaling efficient utilization of total capital. The ratio topped at about 53.4% at the end of 2023, reflecting highly effective capital deployment during that timeframe. However, recent data shows deterioration, with figures dropping to approximately 25.97% as of March 31, 2025, indicating a reduction in the company's ability to generate returns from its total invested capital.
Return on Equity (ROE):
ROE exhibits a generally increasing trend from approximately 2.56% at June 2020 to a peak of over 27% at December 2023, reflecting an improvement in shareholder returns driven perhaps by enhanced profitability and leverage. Nevertheless, a decline has been apparent in 2024 and into the first quarter of 2025, with ROE falling to around 1.48%, indicative of reduced net income or increased equity base, or both, impacting the shareholders’ relative returns.
Overall Analysis:
The profitability ratios collectively illustrate that Willscot Mobile Mini Holdings Corp A experienced notable growth in operational efficiency and shareholder returns from mid-2020 through late 2023, aligning with favorable market conditions or strategic initiatives during that period. The subsequent decline in all ratios suggests headwinds—potentially from market saturation, asset impairments, increased operating costs, or macroeconomic factors—that have led to reduced profitability. The pattern indicates a period of peak profitability followed by contraction, emphasizing the importance of strategic adaptations to restore or sustain profitability levels.
This analysis emphasizes the company's historical capacity for profitability improvement, while also highlighting recent challenges that warrant close monitoring to assess future recovery or continued decline in profitability metrics.