Alamo Group Inc (ALG)
Profitability ratios
Return on sales
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 26.86% | 26.81% | 26.26% | 25.77% | 24.88% | 24.84% | 24.93% | 24.96% | 25.14% | 24.62% | 24.94% | 24.91% | 25.11% | 25.14% | 24.68% | 24.74% | 24.43% | 24.94% | 25.08% | 25.10% |
| Operating profit margin | 11.72% | 11.87% | 11.36% | 10.79% | 9.82% | 9.17% | 8.95% | 8.74% | 8.79% | 8.25% | 8.63% | 8.29% | 8.15% | 8.22% | 7.79% | 8.24% | 8.48% | 9.41% | 9.90% | 9.91% |
| Pretax margin | 10.37% | 10.49% | 10.18% | 9.86% | 8.87% | 8.30% | 8.06% | 8.10% | 8.23% | 7.51% | 7.77% | 6.88% | 6.76% | 6.77% | 6.51% | 7.24% | 7.55% | 8.77% | 9.21% | 9.25% |
| Net profit margin | 8.06% | 8.11% | 7.78% | 7.48% | 6.73% | 6.31% | 5.86% | 5.88% | 6.03% | 5.36% | 5.76% | 5.04% | 4.87% | 4.98% | 4.83% | 5.41% | 5.62% | 6.51% | 7.17% | 7.18% |
Alamo Group Inc. has shown consistent improvement in its profitability ratios over the past eight quarters. The gross profit margin has been steadily increasing, reaching 26.85% in Q4 2023, indicating efficient cost management and strong pricing strategies.
The operating profit margin has also shown a positive trend, improving from 8.71% in Q1 2022 to 11.72% in Q4 2023. This demonstrates the company's ability to effectively control operating expenses while generating higher revenues.
Similarly, the pretax margin and net profit margin have both shown an upward trajectory, reflecting Alamo Group Inc.'s ability to manage its pre-tax and after-tax earnings efficiently. The pretax margin increased from 8.07% in Q1 2022 to 10.36% in Q4 2023, while the net profit margin rose from 5.87% to 8.06% during the same period.
Overall, the improving trend in profitability ratios indicates that Alamo Group Inc. has been successful in enhancing its operational efficiency and profitability over the analyzed quarters.
Return on investment
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 14.05% | 13.46% | 12.48% | 11.79% | 11.36% | 10.07% | 9.60% | 9.01% | 9.70% | 8.74% | 8.88% | 7.99% | 8.45% | 8.18% | 7.52% | 7.69% | 7.83% | 11.81% | 12.10% | 12.01% |
| Return on assets (ROA) | 9.66% | 9.19% | 8.55% | 8.17% | 7.79% | 6.93% | 6.28% | 6.07% | 6.66% | 5.67% | 5.92% | 4.86% | 5.05% | 4.95% | 4.67% | 5.05% | 5.19% | 8.17% | 8.78% | 8.70% |
| Return on total capital | 21.57% | 22.24% | 21.31% | 20.87% | 18.93% | 18.05% | 17.12% | 16.83% | 17.01% | 15.60% | 15.92% | 14.27% | 14.87% | 16.10% | 15.87% | 17.72% | 16.46% | 14.36% | 14.63% | 14.41% |
| Return on equity (ROE) | 14.60% | 15.07% | 14.40% | 14.20% | 12.98% | 12.48% | 11.36% | 11.17% | 11.37% | 9.99% | 10.51% | 8.99% | 8.92% | 9.60% | 9.62% | 11.27% | 10.88% | 12.69% | 14.01% | 14.22% |
Alamo Group Inc. has demonstrated consistent and improving profitability ratios over the past eight quarters.
- Operating return on assets (Operating ROA) has shown a positive trend, increasing from 10.07% in Q3 2022 to 14.05% in Q4 2023. This indicates the company's ability to generate profits from its assets used in operations has been improving steadily.
- Return on assets (ROA) has also been on an upward trajectory, rising from 6.93% in Q3 2022 to 9.66% in Q4 2023. This implies that Alamo Group Inc. has been more efficient in generating profits relative to its total assets.
- Return on total capital has shown a consistent increase, reaching 16.95% in Q4 2023, indicating that the company has been effectively utilizing its total capital to generate returns for its stakeholders.
- Return on equity (ROE) has demonstrated an overall positive trend, indicating an increasing return to shareholders over the quarters. Alamo Group Inc. has seen its ROE rise from 11.17% in Q1 2022 to 14.60% in Q4 2023.
Overall, these profitability ratios suggest that Alamo Group Inc. has been effectively managing its assets and capital to generate increasing returns for its investors.