Allegion PLC (ALLE)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 44.23% | 43.32% | 40.42% | 42.02% | 43.34% |
| Operating profit margin | 20.70% | 19.40% | 17.92% | 18.49% | 14.84% |
| Pretax margin | 18.52% | 16.91% | 15.72% | 18.27% | 13.43% |
| Net profit margin | 15.84% | 14.80% | 14.00% | 16.84% | 11.56% |
Allegion PLC's profitability ratios have shown a mixed trend over the past five years.
- Gross profit margin has slightly decreased from 43.34% in 2020 to 42.02% in 2021, further dropping to 40.42% in 2022, but then increasing to 43.32% in 2023 and 44.23% in 2024. This may indicate fluctuating costs of goods sold relative to revenue.
- Operating profit margin has generally been on an upward trajectory, rising from 14.84% in 2020 to 18.49% in 2021, 17.92% in 2022, 19.40% in 2023, and 20.70% in 2024. This suggests that Allegion has been effectively managing its operating expenses.
- Pretax margin experienced a substantial jump from 13.43% in 2020 to 18.27% in 2021, but then dipped to 15.72% in 2022, eventually recovering to 16.91% in 2023 and 18.52% in 2024. This indicates fluctuations in pre-tax earnings relative to total revenue.
- Net profit margin has shown a similar trend to the pretax margin, increasing from 11.56% in 2020 to 16.84% in 2021, then decreasing to 14.00% in 2022, before improving to 14.80% in 2023 and 15.84% in 2024. This suggests that Allegion has been able to maintain and improve its bottom line profitability over time.
In summary, Allegion PLC has demonstrated variations in its profitability margins over the years, with some ratios showing improvement while others showcasing fluctuations. Overall, the company's ability to manage costs and generate profits has yielded a positive trajectory in its profitability ratios.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 17.40% | 16.43% | 14.69% | 17.38% | 13.15% |
| Return on assets (ROA) | 13.31% | 12.53% | 11.48% | 15.83% | 10.24% |
| Return on total capital | 53.36% | 53.88% | 62.51% | 75.31% | 50.22% |
| Return on equity (ROE) | 39.81% | 40.99% | 48.49% | 63.35% | 37.89% |
Allegion PLC's profitability ratios show a positive trend over the years, indicating improving profitability levels.
1. Operating return on assets (Operating ROA) has increased from 13.15% in 2020 to 17.40% in 2024. This metric measures the company's ability to generate operating income from its assets, and the consistent rise demonstrates efficient asset utilization and operational efficiency.
2. Return on assets (ROA) has also shown a steady increase from 10.24% in 2020 to 13.31% in 2024. ROA reflects the overall profitability of the company relative to its total assets, and the upward trend suggests Allegion is effectively converting its assets into profits.
3. Return on total capital has fluctuated but overall maintained a positive trajectory, with a peak of 75.31% in 2021 and settling at 53.36% in 2024. This metric assesses the company's ability to generate returns from all capital invested, including debt and equity, indicating reasonable capital efficiency over the years.
4. Return on equity (ROE) has displayed a similar upward trend, climbing from 37.89% in 2020 to 39.81% in 2024. ROE measures the return generated on shareholders' equity, reflecting the company's ability to generate profit from shareholders' investments, and the consistent improvement highlights efficient management of equity investments.
Overall, Allegion PLC has shown a positive trend in profitability ratios, indicating effective management of resources to generate increasing profits for its shareholders over the years.