Amentum Holdings Inc. (AMTM)
Profitability ratios
Return on sales
| Sep 30, 2024 | Dec 31, 2023 | Dec 31, 2022 | |
|---|---|---|---|
| Gross profit margin | 2.06% | 13.93% | 14.55% |
| Operating profit margin | 3.49% | 5.92% | 5.54% |
| Pretax margin | 0.00% | 5.83% | 5.87% |
| Net profit margin | -0.98% | 4.21% | 4.30% |
Based on the provided data, Amentum Holdings Inc.'s profitability ratios show fluctuations over the years.
- Gross Profit Margin: The gross profit margin has decreased from 14.55% in 2022 to 13.93% in 2023 and dropped significantly to 2.06% in September 2024. This indicates that the company's profitability from sales after deducting the cost of goods sold has declined, which could be a concern for its operational efficiency.
- Operating Profit Margin: Amentum's operating profit margin has shown a slight increase from 5.54% in 2022 to 5.92% in 2023 but decreased to 3.49% in September 2024. This metric reflects the company's ability to generate profit from its core operations, and the decrease in 2024 could indicate challenges in controlling operating expenses.
- Pretax Margin: The pretax margin has remained relatively stable, hovering around 5.87% in 2022 and 5.83% in 2023 but dropped to 0.00% in September 2024. This metric shows the company's profitability before taxes, and the significant drop in 2024 suggests potential issues impacting the bottom line.
- Net Profit Margin: Amentum's net profit margin has declined from 4.30% in 2022 to 4.21% in 2023 and turned negative to -0.98% in September 2024. This ratio reflects the company's profitability after all expenses, including taxes and interest, are deducted. The negative figure in 2024 indicates that the company incurred a net loss, raising concerns about its financial performance and sustainability.
In conclusion, Amentum Holdings Inc. has experienced mixed results in its profitability ratios over the years, with decreasing margins in 2024 raising potential red flags regarding its operational efficiency and financial health. Further analysis and investigation into the reasons behind these fluctuations are warranted to understand the company's performance better.
Return on investment
| Sep 30, 2024 | Dec 31, 2023 | Dec 31, 2022 | |
|---|---|---|---|
| Operating return on assets (Operating ROA) | 2.43% | 7.87% | 6.80% |
| Return on assets (ROA) | -0.68% | 5.59% | 5.28% |
| Return on total capital | 0.00% | 0.00% | 0.00% |
| Return on equity (ROE) | -1.84% | 7.11% | 6.84% |
Amentum Holdings Inc.'s profitability ratios indicate the company's ability to generate returns relative to its assets and equity.
- Operating ROA: Amentum Holdings Inc. shows a consistent improvement in its operating return on assets, with a progression from 6.80% on December 31, 2022, to 7.87% on December 31, 2023, although a slight decline to 2.43% on September 30, 2024. This ratio reflects the company's operational efficiency and management's ability to generate profits from its assets.
- ROA: The return on assets for Amentum Holdings Inc. also showed improvement, increasing from 5.28% on December 31, 2022, to 5.59% on December 31, 2023. However, the ratio turned negative, indicating a loss, at -0.68% as of September 30, 2024. This suggests that the company may be facing challenges in generating profits from its total assets.
- Return on total capital: The return on total capital for Amentum Holdings Inc. remained constant at 0.00% throughout the periods analyzed. This may suggest that the company is not effectively utilizing its total capital to generate returns for its investors.
- ROE: Amentum Holdings Inc.'s return on equity shows a positive trend, increasing from 6.84% on December 31, 2022, to 7.11% on December 31, 2023. However, it decreased significantly to -1.84% on September 30, 2024. This could indicate challenges in generating returns for the company's equity holders.
In summary, while Amentum Holdings Inc. has shown improvements in its operating and asset return ratios over the years, the negative ROA and declining ROE in the most recent period may indicate potential financial challenges that the company needs to address to ensure sustainable profitability and shareholder value.