Arcosa Inc (ACA)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 19.23% | 18.85% | 17.98% | 19.74% | 19.14% |
| Operating profit margin | 9.42% | 15.56% | 5.27% | 7.84% | 8.80% |
| Pretax margin | 8.49% | 14.10% | 4.11% | 7.14% | 8.45% |
| Net profit margin | 6.90% | 10.96% | 3.42% | 5.51% | 6.52% |
Arcosa Inc's profitability ratios have varied over the past five years, indicating fluctuations in their ability to generate profits. The gross profit margin has generally been stable, averaging around 18-19%, showing the company's ability to efficiently manage production costs.
The operating profit margin has also shown stability, ranging from 5-8%, reflecting Arcosa's efficiency in controlling operating expenses to generate operating profits.
The pretax margin has demonstrated significant variability, with a notable increase in 2022 followed by a decrease in 2023. This may suggest fluctuations in Arcosa's ability to manage non-operating expenses and income.
Similarly, the net profit margin has fluctuated, with a significant increase in 2022 followed by a decline in 2023. This may indicate changes in Arcosa's ability to manage taxes and other expenses to generate net profits.
Overall, while Arcosa's profitability ratios show variability, the company has generally maintained healthy margins, indicating efficient management of costs and operations despite fluctuations in profitability over the years.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.07% | 10.45% | 3.37% | 5.74% | 6.64% |
| Return on assets (ROA) | 4.45% | 7.36% | 2.18% | 4.03% | 4.92% |
| Return on total capital | 9.61% | 15.89% | 5.48% | 7.86% | 8.58% |
| Return on equity (ROE) | 6.83% | 11.25% | 3.56% | 5.63% | 6.33% |
Arcosa Inc's profitability ratios show varying trends over the past five years.
1. Operating return on assets (Operating ROA) has generally increased from 3.46% in 2021 to 5.11% in 2023, indicating that the company is generating more operating income per dollar of assets.
2. Return on assets (ROA) was highest in 2022 at 7.33% but decreased in 2023 to 4.45%, suggesting a decline in overall profitability relative to the total assets employed.
3. Return on total capital decreased from 7.40% in 2020 to 6.30% in 2023, indicating a slightly lower return on the total invested capital over the years.
4. Return on equity (ROE) reached its peak in 2022 at 11.21% but fell to 6.83% in 2023, reflecting a lower return to equity shareholders compared to the previous year.
Overall, while Arcosa Inc has shown some fluctuations in profitability ratios, there seems to be a need for the company to focus on improving its overall profitability, asset utilization, and returns to both investors and creditors.