Allegion PLC (ALLE)
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 | 16.42% | 16.76% | 16.00% | 15.62% | 15.31% | 15.93% | 16.17% | 16.24% | 16.81% | 13.14% | 13.79% | 12.71% | 8.91% | 12.07% | 12.24% | 13.33% | 16.32% | 19.33% | 18.03% | 17.58% |
| Operating profit margin | 19.93% | 20.07% | 19.23% | 18.92% | 18.41% | 17.64% | 18.00% | 18.10% | 18.80% | 18.80% | 19.50% | 18.82% | 15.12% | 16.37% | 16.54% | 17.46% | 20.45% | 20.23% | 19.56% | 19.67% |
| Pretax margin | 17.36% | 17.57% | 16.57% | 16.38% | 16.14% | 16.23% | 17.58% | 17.85% | 18.57% | 17.81% | 18.41% | 17.70% | 13.69% | 13.63% | 13.17% | 14.07% | 17.19% | 18.12% | 17.62% | 17.79% |
| Net profit margin | 15.21% | 15.79% | 14.62% | 14.43% | 14.38% | 14.17% | 16.15% | 16.42% | 17.13% | 16.36% | 16.41% | 15.70% | 11.78% | 11.51% | 10.84% | 11.57% | 14.54% | 16.31% | 15.96% | 16.28% |
Allegion plc has shown a consistent improvement in its profitability ratios over the recent quarters. The gross profit margin has been steadily increasing, reaching 43.32% in Q4 2023, indicating the company's ability to control its production costs and generate higher revenue from sales.
Similarly, the operating profit margin has also shown a positive trend, with a Q4 2023 figure of 19.61%, highlighting efficient management of operating expenses and improved operational performance. The pretax margin has fluctuated slightly but remains at healthy levels, demonstrating the company's effectiveness in managing its pre-tax income relative to total revenue.
The net profit margin, a key indicator of profitability, has also seen an uptrend, reaching 14.80% in Q4 2023, reflecting Allegion's ability to generate profits after accounting for all expenses, including taxes. Overall, the company's improving profitability ratios indicate sound financial performance and effective cost management strategies.
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) | 16.43% | 16.93% | 16.28% | 15.53% | 14.69% | 13.75% | 14.17% | 17.15% | 17.38% | 17.10% | 18.13% | 17.16% | 13.15% | 14.17% | 15.41% | 17.62% | 19.04% | 19.66% | 18.86% | 19.11% |
| Return on assets (ROA) | 12.53% | 13.32% | 12.38% | 11.84% | 11.48% | 11.04% | 12.71% | 15.56% | 15.83% | 14.87% | 15.26% | 14.31% | 10.24% | 9.96% | 10.11% | 11.68% | 13.54% | 15.84% | 15.38% | 15.81% |
| Return on total capital | 24.31% | 22.06% | 21.29% | 20.38% | 19.52% | 18.77% | 20.05% | 25.75% | 26.22% | 26.94% | 25.91% | 24.38% | 18.43% | 18.17% | 19.12% | 21.90% | 24.30% | 26.55% | 26.24% | 26.48% |
| Return on equity (ROE) | 40.99% | 45.22% | 45.27% | 46.89% | 48.63% | 55.04% | 59.78% | 63.11% | 63.63% | 53.63% | 59.55% | 57.98% | 37.89% | 36.60% | 42.27% | 52.67% | 53.05% | 66.26% | 66.36% | 69.89% |
Allegion plc's profitability ratios demonstrate a positive trend over the periods analyzed, reflecting the company's ability to generate profits from its operations and efficiently utilize its assets and capital.
The Operating Return on Assets (Operating ROA) has shown a consistent improvement, reaching 16.60% in Q4 2023 from 14.69% in Q4 2022, indicating that the company is becoming more effective in generating profits from its assets through its core business operations.
Return on Assets (ROA) has also shown an upward trajectory, increasing from 11.48% in Q4 2022 to 12.53% in Q4 2023. This metric signifies that Allegion plc is efficiently utilizing its assets to generate profits for the company.
Return on Total Capital has demonstrated a similar positive trend, reaching 21.48% in Q4 2023 from 19.34% in Q4 2022. This ratio highlights the company's ability to generate returns for both equity and debt holders on the total invested capital.
Return on Equity (ROE) has fluctuated but generally remained at robust levels, indicating strong profitability for the company's shareholders. Although there have been slight fluctuations quarter over quarter, the ROE has consistently been above 40%, reflecting effective management in generating profits for shareholders.
Overall, Allegion plc's profitability ratios depict a healthy financial performance, with improving returns on assets, capital, and equity, suggesting efficient operations and sound financial management.