Advanced Energy Industries Inc (AEIS)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 36.15% | 36.66% | 36.70% | 38.45% | 39.39% |
| Operating profit margin | 6.94% | 12.65% | 10.46% | 12.49% | 6.79% |
| Pretax margin | 7.32% | 13.00% | 10.25% | 11.19% | 9.44% |
| Net profit margin | 7.83% | 10.83% | 9.29% | 9.56% | 8.10% |
The profitability ratios of Advanced Energy Industries Inc. show a fluctuating trend over the past five years.
The gross profit margin has slightly declined from 40.01% in 2019 to 35.78% in 2023. This may indicate potential challenges in maintaining high levels of profitability on its sales.
The operating profit margin has shown significant variability, decreasing from 13.36% in 2020 to 8.50% in 2023. This suggests potential inefficiencies in managing operating expenses or declining profitability at the operational level.
The pretax margin has fluctuated over the years, with a notable decrease from 13.10% in 2022 to 7.40% in 2023. This suggests that the company's profitability before taxes has been impacted by various factors such as changes in revenue, expenses, or tax rates.
The net profit margin has also shown variability, decreasing from 10.82% in 2022 to 7.75% in 2023. This indicates that after accounting for all expenses, including taxes, the company's bottom-line profitability has been affected.
Overall, the declining trend in profitability margins suggests that Advanced Energy Industries Inc. may be facing challenges in maintaining its profitability levels, potentially indicating the need for strategic adjustments to improve its financial performance.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.45% | 11.70% | 8.35% | 10.68% | 3.55% |
| Return on assets (ROA) | 5.02% | 10.02% | 7.41% | 8.17% | 4.24% |
| Return on total capital | 6.69% | 16.42% | 12.20% | 15.73% | 5.45% |
| Return on equity (ROE) | 11.21% | 18.73% | 15.47% | 16.53% | 9.60% |
The profitability ratios of Advanced Energy Industries Inc. have shown fluctuations over the past five years.
Operating return on assets (Operating ROA) decreased from 12.04% in 2022 to 5.50% in 2023, indicating a decline in the company's ability to generate profit from its assets through its core operations.
Return on assets (ROA) also decreased from 10.02% in 2022 to 5.02% in 2023, showing a similar trend of lower profitability relative to the total assets employed by the company.
Return on total capital saw a notable decrease from 16.67% in 2022 to 6.83% in 2023, demonstrating a decline in the company's ability to generate earnings from its total capital base.
Return on equity (ROE) decreased from 18.73% in 2022 to 11.21% in 2023, signaling a decrease in the company's profitability in relation to shareholder equity.
Overall, the declining trend in these profitability ratios suggests that Advanced Energy Industries Inc. may be facing challenges in maintaining or improving its profitability levels in recent years. Further analysis of the company's financial performance and operational strategies may be needed to address these declines.