Adient PLC (ADNT)
Profitability ratios
Return on sales
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 6.32% | 6.71% | 5.71% | 6.04% | 4.67% |
| Operating profit margin | 0.00% | 0.38% | -1.18% | -0.63% | -4.83% |
| Pretax margin | 0.34% | 1.33% | -0.18% | 9.92% | -3.87% |
| Net profit margin | 0.12% | 1.33% | -0.85% | 8.10% | -4.32% |
The profitability ratios of Adient PLC have shown fluctuating trends over the past five years. The gross profit margin has varied between 4.67% and 6.71%, with a slight decrease to 6.32% in 2024. This indicates the company's ability to generate profits after accounting for the costs directly associated with production.
The operating profit margin, on the other hand, has been inconsistent, ranging from -4.83% in 2020 to a marginal improvement to 0.38% in 2023 before falling back to 0.00% in 2024. This ratio reflects the efficiency of Adient PLC in managing its operating expenses to generate profits from core operations.
The pretax margin shows a similar pattern of fluctuations, with a significant drop to -3.87% in 2020 followed by positive performance in subsequent years, reaching 1.33% in 2023 but falling to 0.34% in 2024. This ratio indicates the company's ability to generate profits before considering taxes relative to its total revenue.
Lastly, the net profit margin has also been volatile, moving from -4.32% in 2020 to 1.33% in 2023, before declining to 0.12% in 2024. This ratio reflects the company's bottom-line profitability after accounting for all expenses, including taxes.
Overall, Adient PLC's profitability ratios demonstrate a mixed performance, with some improvements but also periods of decline. Further analysis of the company's financial strategies and operational efficiency may be necessary to understand the drivers behind these fluctuations and to identify areas for potential improvement.
Return on investment
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 0.00% | 0.63% | -1.81% | -0.80% | -5.96% |
| Return on assets (ROA) | 0.19% | 2.18% | -1.31% | 10.28% | -5.33% |
| Return on total capital | 11.11% | 15.13% | 8.01% | 66.75% | -23.66% |
| Return on equity (ROE) | 0.84% | 9.20% | -5.79% | 46.63% | -45.09% |
Adient PLC's profitability ratios have fluctuated over the past five years.
1. Operating return on assets (Operating ROA) has been inconsistent, with a slight improvement from 2020 to 2021, but returning to a low of 0.00% in 2024. This ratio indicates the company's ability to generate profits from its assets through its core operations.
2. Return on assets (ROA) has also varied significantly, with a noticeable decline in 2021 followed by a slight recovery in 2022 and a further increase in 2024. ROA measures the company's overall efficiency in generating profits from its total assets.
3. Return on total capital has shown a similar pattern to ROA, with fluctuations in performance over the years. The ratio indicates the company's ability to generate returns for both equity and debt holders.
4. Return on equity (ROE) has experienced dramatic swings, with negative figures in 2020 and 2022, followed by positive returns in the subsequent years. ROE reflects the company's ability to generate profits from shareholders' equity.
Overall, Adient PLC's profitability ratios demonstrate variability in performance, indicating the company's challenges in consistently generating returns for its stakeholders. Additional financial and operational analysis would be needed to understand the underlying factors driving these fluctuations in profitability.