Alamo Group Inc (ALG)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 26.85% | 24.88% | 25.07% | 25.25% | 24.44% |
| Operating profit margin | 11.72% | 9.82% | 8.76% | 8.15% | 8.48% |
| Pretax margin | 10.36% | 8.87% | 8.21% | 6.86% | 7.56% |
| Net profit margin | 8.06% | 6.73% | 6.01% | 4.97% | 5.64% |
Alamo Group Inc.'s profitability ratios have shown a positive trend over the past five years. The company's gross profit margin has remained relatively stable, with a slight increase from 24.41% in 2019 to 26.85% in 2023. This indicates the company's ability to generate profits from its core operations.
The operating profit margin has also improved steadily, increasing from 8.46% in 2019 to 11.72% in 2023. This reflects management's effective cost control and operational efficiency measures.
The pretax margin has exhibited a consistent upward trend, reaching 10.36% in 2023 from 7.54% in 2019. This suggests that the company has been able to generate higher profits before accounting for taxes.
Furthermore, Alamo Group Inc.'s net profit margin has shown a similar positive trajectory, rising from 5.62% in 2019 to 8.06% in 2023. This indicates the company's ability to efficiently manage its bottom line and convert revenues into net income.
Overall, the profitability ratios of Alamo Group Inc. have improved over the years, reflecting the company's strong operational performance and financial management.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 14.05% | 11.36% | 9.70% | 8.45% | 7.83% |
| Return on assets (ROA) | 9.66% | 7.79% | 6.66% | 5.15% | 5.20% |
| Return on total capital | 21.57% | 18.93% | 17.01% | 15.05% | 16.50% |
| Return on equity (ROE) | 14.60% | 12.98% | 11.37% | 9.10% | 10.92% |
Alamo Group Inc.'s profitability ratios have shown a generally positive trend over the past five years.
1. Operating return on assets (Operating ROA) has been steadily increasing from 7.80% in 2019 to 14.05% in 2023. This indicates that the company's efficiency in generating operating income from its total assets has improved.
2. Return on assets (ROA) has also shown a consistent growth, rising from 5.19% in 2019 to 9.66% in 2023. This signifies that the company has been increasingly effective in generating profits from its total assets.
3. Return on total capital has seen a similar upward trajectory, progressing from 9.34% in 2019 to 16.95% in 2023. This metric reflects the company's ability to generate returns for both equity and debt holders on the total invested capital.
4. Return on equity (ROE) has experienced fluctuations, but overall, it has improved from 9.05% in 2019 to 14.60% in 2023. This measure indicates the company's profitability from the perspective of its shareholders' equity.
Overall, Alamo Group Inc. has demonstrated an enhancement in its profitability performance over the years, as seen through the increasing trends in these key profitability ratios.