Adient PLC (ADNT)
Profitability ratios
Return on sales
| 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 | Mar 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 6.32% | 6.28% | 6.77% | 6.82% | 6.71% | 6.96% | 6.35% | 6.03% | 5.71% | 4.24% | 4.14% | 4.94% | 6.04% | 7.13% | 5.67% | 5.33% | 4.67% | 4.31% | 5.93% | 5.42% |
| Operating profit margin | 0.16% | 0.20% | 0.64% | 0.60% | 0.55% | 0.95% | 0.15% | -0.31% | -0.95% | -2.54% | -2.72% | -1.86% | -0.45% | 2.05% | 0.08% | -0.24% | -2.63% | -2.42% | 0.02% | -2.72% |
| Pretax margin | 0.34% | 0.39% | 0.86% | 1.32% | 1.33% | 1.49% | 0.79% | 0.35% | -0.18% | 7.70% | 7.45% | 8.43% | 9.92% | 1.27% | -0.58% | -1.39% | -3.87% | -3.40% | -0.67% | -1.15% |
| Net profit margin | 0.12% | 0.50% | 1.04% | 1.39% | 1.33% | 0.75% | 0.08% | -0.38% | -0.85% | 6.00% | 5.80% | 6.79% | 8.10% | 0.77% | -1.10% | -1.83% | -4.32% | -3.96% | -3.28% | -3.93% |
Adient PLC's profitability ratios have exhibited fluctuations over the past few quarters.
Starting with the gross profit margin, there has been some variability in the company's ability to generate profits after accounting for the cost of goods sold. While the margin has generally been in the range of 4% to 7%, it dipped to a low of 4.14% in March 2022 before gradually improving to 6.77% in March 2024, although it slightly decreased to 6.32% in the latest quarter in September 2024.
Moving on to the operating profit margin, which reflects the efficiency of Adient in managing its operating expenses, the company has struggled to maintain consistent profitability. There have been periods of negative margins, with the lowest being -2.72% in June 2022. Despite this, there has been an uptick in the margins in recent quarters, with the latest figure at 0.16% in September 2024.
The pretax margin, which indicates the company's ability to generate profits before accounting for taxes, has also experienced volatility. Adient saw a significant improvement in its pretax margin from negative figures to positive figures around March 2023, reaching a peak of 9.92% in December 2021. However, the margin has since fluctuated and stood at 0.34% in September 2024.
Lastly, the net profit margin, which represents the company's overall profitability after all expenses have been deducted, has been inconsistent. While Adient has shown the ability to achieve positive net margins, there have been periods of negative margins as well. The lowest net profit margin was -4.32% in December 2019, with a recent improvement to 0.12% in September 2024.
Overall, Adient PLC's profitability ratios highlight a mixed performance in generating profits over the analyzed periods, with fluctuations in margins indicating the company's ongoing efforts to improve operational efficiency and profitability.
Return on investment
| 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 | Mar 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 0.26% | 0.33% | 1.06% | 0.99% | 0.90% | 1.53% | 0.23% | -0.47% | -1.46% | -3.62% | -3.59% | -2.30% | -0.58% | 3.04% | 0.10% | -0.28% | -3.25% | -3.27% | 0.03% | -4.27% |
| Return on assets (ROA) | 0.19% | 0.81% | 1.70% | 2.29% | 2.18% | 1.21% | 0.13% | -0.58% | -1.31% | 8.53% | 7.65% | 8.43% | 10.28% | 1.14% | -1.42% | -2.18% | -5.33% | -5.35% | -4.80% | -6.18% |
| Return on total capital | 11.72% | 13.39% | 16.00% | 17.86% | 16.65% | 19.46% | 13.65% | 10.40% | 8.35% | 56.15% | 50.72% | 56.74% | 66.75% | 28.02% | 10.28% | 2.62% | -23.66% | -22.72% | 3.63% | -2.07% |
| Return on equity (ROE) | 0.84% | 3.84% | 7.61% | 9.32% | 9.20% | 5.29% | 0.55% | -2.46% | -5.79% | 37.45% | 33.00% | 38.57% | 46.63% | 7.63% | -9.54% | -15.84% | -45.09% | -41.20% | -33.16% | -36.78% |
Adient PLC's profitability ratios show varying levels of performance over the past few fiscal quarters.
1. Operating Return on Assets (Operating ROA): This ratio indicates the company's ability to generate profits from its assets. Adient's Operating ROA has fluctuated, ranging from negative figures to positive figures, with a recent increase in the latest quarter to 0.26%. This suggests that the company is gradually improving its operational efficiency in utilizing its assets to generate profits.
2. Return on Assets (ROA): ROA reflects the overall profitability of the company in relation to its total assets. Adient's ROA has shown volatility, with recent improvements after experiencing negative figures in previous quarters. The ROA stood at 0.19% in the latest quarter, indicating a modest profitability level relative to its asset base.
3. Return on Total Capital: This ratio evaluates the returns generated from the total capital employed by the company. Adient's Return on Total Capital has shown a positive trend, with a recent increase to 11.72%, indicating an improvement in generating returns relative to the total capital invested in the business.
4. Return on Equity (ROE): ROE measures the profitability of the company from the perspective of its shareholders' equity. Adient's ROE has displayed fluctuation, with recent positive movements reaching 0.84% in the latest quarter. This suggests that the company is gradually improving its ability to generate returns for its equity holders.
In conclusion, while Adient PLC has shown some positive momentum in its profitability ratios, there are still areas that require improvement to enhance overall profitability and efficiency in utilizing its assets and capital effectively.