Autoliv Inc (ALV)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 17.60% | 15.80% | 18.42% | 16.96% | 18.71% |
| Operating profit margin | 6.66% | 7.46% | 8.23% | 5.20% | 8.58% |
| Pretax margin | 5.90% | 6.80% | 7.46% | 3.94% | 7.65% |
| Net profit margin | 4.71% | 4.79% | 5.30% | 2.54% | 5.46% |
Autoliv Inc.'s profitability ratios have shown some fluctuations over the past five years. The gross profit margin has ranged from 15.79% to 18.54%, with the highest level recorded in 2021. This indicates the company's ability to effectively manage its production costs and generate profits from its core operations.
The operating profit margin has also varied, ranging from 6.34% to 8.99%, with the highest level observed in 2019. This metric reflects Autoliv's operational efficiency in managing both production and operating expenses to generate profits before interest and taxes.
The pretax margin peaked in 2021 at 7.47% but experienced a significant decrease in 2023 to 5.83%. This ratio shows Autoliv's ability to generate profits before accounting for income tax expenses, with the recent dip suggesting potential challenges or increased expenses affecting pre-tax profitability.
In terms of net profit margin, Autoliv has maintained a relatively stable range between 4.65% and 5.40%, indicating the company's ability to translate its revenue into profits after all expenses, including taxes. The highest level was recorded in 2021, suggesting strong bottom-line performance in that particular year.
Overall, while Autoliv's profitability ratios have demonstrated some volatility, the company has generally shown resilience in maintaining healthy levels of profitability across its operations over the analyzed period.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.28% | 8.54% | 8.96% | 4.68% | 10.72% |
| Return on assets (ROA) | 5.86% | 5.48% | 5.77% | 2.29% | 6.82% |
| Return on total capital | 18.14% | 18.03% | 15.65% | 8.03% | 18.72% |
| Return on equity (ROE) | 19.08% | 16.19% | 16.52% | 7.76% | 21.90% |
Autoliv Inc.'s profitability ratios indicate a generally positive trend over the past five years.
1. Operating Return on Assets (Operating ROA): Autoliv's operating ROA increased from 5.79% in 2020 to 10.75% in 2023, indicating improved efficiency in generating operating income relative to total assets.
2. Return on Assets (ROA): Autoliv's ROA fluctuated over the years but generally remained stable. The company achieved a ROA of 5.84% in 2023, showing a moderate increase compared to the previous year.
3. Return on Total Capital: Autoliv's return on total capital increased significantly from 9.84% in 2020 to 20.39% in 2023, indicating effective utilization of both debt and equity in generating profits.
4. Return on Equity (ROE): Autoliv's ROE also exhibited an upward trend, reaching 19.05% in 2023. This indicates that the company is effectively generating profits for its shareholders relative to their equity investments.
Overall, Autoliv's profitability ratios demonstrate improving performance in utilizing assets, capital, and equity to generate returns for investors.