Allegion PLC (ALLE)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 15.43% | 14.36% | 16.15% | 11.82% | 15.77% |
| Operating profit margin | 19.93% | 18.41% | 18.80% | 15.12% | 20.45% |
| Pretax margin | 17.36% | 16.14% | 18.57% | 13.69% | 17.19% |
| Net profit margin | 15.21% | 14.38% | 17.13% | 11.78% | 14.54% |
Allegion plc has shown relatively stable gross profit margins over the past five years, ranging from 40.42% to 43.88%. This indicates the company's ability to efficiently manage its production costs and generate profit from sales.
In terms of operating profit margin, Allegion plc has seen slight fluctuations but generally maintained levels between 17.92% and 19.97%. This indicates the company's ability to control its operating expenses and generate profit from its core business activities.
The pretax margin of Allegion plc has varied over the years, with the lowest at 13.43% in 2020 and the highest at 18.27% in 2021. This ratio signifies the company's operational efficiency in generating profit before accounting for taxes.
Allegion plc's net profit margin has also fluctuated over the years, with the lowest at 11.56% in 2020 and the highest at 16.84% in 2021. This ratio reflects the company's ability to generate profit after all expenses, including taxes, have been accounted for.
Overall, despite some fluctuations, Allegion plc has demonstrated a consistent ability to generate profit at various stages of its operations, as evidenced by its stable operating profit margin and relatively healthy pretax and net profit margins over the past five years.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 16.43% | 14.69% | 17.38% | 13.15% | 19.04% |
| Return on assets (ROA) | 12.53% | 11.48% | 15.83% | 10.24% | 13.54% |
| Return on total capital | 24.31% | 19.52% | 26.22% | 18.43% | 24.30% |
| Return on equity (ROE) | 40.99% | 48.63% | 63.63% | 37.89% | 53.05% |
Allegion plc has exhibited a relatively stable performance in terms of profitability ratios over the past five years. Starting with the Operating Return on Assets (Operating ROA), the company's performance ranged from 14.69% in 2022 to 19.04% in 2019, with a notable increase from 2022 to 2023, reaching 16.60%. This ratio indicates the company's ability to generate operating profits from its assets, with a positive trend over the years.
Moving on to the Return on Assets (ROA), Allegion plc maintained a range between 10.24% in 2020 to 15.83% in 2021. The ratio presents a measure of the company's overall profitability in relation to its total assets, reflecting how efficiently the assets are being utilized to generate returns for the shareholders.
In terms of Return on Total Capital, Allegion plc consistently demonstrated strong performance over the years, with values ranging from 19.34% in 2022 to 25.86% in 2019. This ratio reflects how effectively the company generates profit from its total capital, including both debt and equity, indicating robust financial performance and effective capital allocation strategies.
Lastly, the Return on Equity (ROE) for Allegion plc fluctuated, with the highest value of 63.63% in 2021 and the lowest of 37.89% in 2020. ROE measures the company's ability to generate profits from shareholders' equity, and Allegion plc's performance in this aspect reflects varying levels of profitability for shareholders over the years.
Overall, Allegion plc has shown consistent profitability ratios, with the Return on Total Capital and Operating ROA indicating strong performance and efficient asset utilization. However, fluctuations in the Return on Equity and Return on Assets suggest potential variations in profitability levels over the years, which could be influenced by factors such as operational efficiency, financial leverage, and market conditions.