Arcosa Inc (ACA)
Net profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 159,200 | 245,800 | 69,600 | 106,600 | 113,300 |
| Revenue | US$ in thousands | 2,307,900 | 2,242,800 | 2,036,400 | 1,935,600 | 1,736,900 |
| Net profit margin | 6.90% | 10.96% | 3.42% | 5.51% | 6.52% |
December 31, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $159,200K ÷ $2,307,900K
= 6.90%
Net profit margin is a key financial ratio that reveals the percentage of each dollar of revenue that translates into profit after all expenses have been deducted. Arcosa Inc's net profit margin has fluctuated over the past five years, ranging from 3.40% in 2021 to 10.91% in 2022.
The significant decrease in net profit margin in 2021 compared to the prior and subsequent years suggests a lower efficiency in converting revenue into profit during that period. However, the improvement in net profit margin in 2022 indicates a more effective cost management and revenue generation strategy, resulting in higher profitability.
The most recent net profit margin of 6.90% in 2023 is lower than the peak in 2022 but still above the levels observed in 2020 and 2019. This suggests that Arcosa Inc has maintained a satisfactory level of profitability, albeit slightly lower than the previous year.
Overall, while Arcosa Inc has experienced fluctuations in net profit margin, the company has demonstrated the ability to generate reasonable levels of profit relative to its revenue in recent years. Further analysis would be necessary to explore the specific factors driving these fluctuations and to determine the sustainability of Arcosa Inc's profitability.
Peer comparison
Dec 31, 2023