Advanced Energy Industries Inc (AEIS)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 35.72% | 35.78% | 36.60% | 36.56% | 38.27% |
| Operating profit margin | 2.47% | 6.87% | 12.63% | 10.42% | 12.43% |
| Pretax margin | 3.53% | 7.40% | 13.10% | 10.21% | 11.17% |
| Net profit margin | 3.66% | 7.75% | 10.82% | 9.25% | 9.51% |
Based on the provided data, Advanced Energy Industries Inc's profitability ratios have exhibited some fluctuations over the years.
- Gross Profit Margin: The company's gross profit margin has been relatively stable, ranging from 35.72% to 38.27% over the past five years, indicating its ability to generate profits after accounting for the cost of goods sold.
- Operating Profit Margin: There has been a decline in the operating profit margin from 12.43% in 2020 to 2.47% in 2024. This shows that the company's operating expenses have increased relative to its revenues, resulting in lower profitability at the operating level.
- Pretax Margin: The pretax margin, which indicates the company's profitability before accounting for taxes, has also shown a downward trend. It decreased from 11.17% in 2020 to 3.53% in 2024, suggesting a decrease in overall profitability.
- Net Profit Margin: The net profit margin, representing the company's bottom-line profitability after all expenses are deducted, has experienced a similar downward trajectory. It fell from 9.51% in 2020 to 3.66% in 2024, indicating a decrease in the company's ability to convert revenue into net income.
Overall, the declining trend in operating, pretax, and net profit margins suggests that Advanced Energy Industries Inc may be facing challenges in maintaining profitability efficiency and cost control over the years, which could impact its overall financial performance and investor confidence.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 1.62% | 4.45% | 11.70% | 8.35% | 10.68% |
| Return on assets (ROA) | 2.40% | 5.02% | 10.02% | 7.41% | 8.17% |
| Return on total capital | 6.44% | 9.94% | 23.00% | 18.06% | 23.22% |
| Return on equity (ROE) | 4.51% | 11.21% | 18.73% | 15.47% | 16.53% |
Advanced Energy Industries Inc's profitability ratios show a mixed performance over the data period.
- Operating Return on Assets (Operating ROA): The Operating ROA decreased from 10.68% in 2020 to 8.35% in 2021, then improved to 11.70% in 2022, but declined significantly to 4.45% in 2023 and further to 1.62% in 2024. This indicates a fluctuating operating efficiency in utilizing assets to generate profits.
- Return on Assets (ROA): The ROA also followed a similar trend, decreasing from 8.17% in 2020 to 7.41% in 2021, increasing to 10.02% in 2022, but then dropped to 5.02% in 2023 and further to 2.40% in 2024. These fluctuations suggest varying levels of overall profitability relative to the total assets employed.
- Return on Total Capital: The Return on Total Capital decreased from 23.22% in 2020 to 18.06% in 2021, increased to 23.00% in 2022, and then declined to 9.94% in 2023 and further to 6.44% in 2024. This indicates a reduction in the efficiency of generating returns from total capital employed.
- Return on Equity (ROE): The ROE decreased from 16.53% in 2020 to 15.47% in 2021, increased to 18.73% in 2022, decreased to 11.21% in 2023, and further declined to 4.51% in 2024. This indicates a declining trend in the returns generated for the equity shareholders over the data period.
In general, the profitability ratios of Advanced Energy Industries Inc indicate fluctuating performance in terms of generating profits from assets and capital, with a downward trend in returns on equity. Further analysis is required to understand the factors driving these fluctuations and to determine the company's overall profitability and financial health.