Amentum Holdings Inc. (AMTM)
Profitability ratios
Return on sales
| Dec 31, 2024 | Sep 30, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Gross profit margin | 9.51% | 2.06% | 9.94% | 10.04% | 15.46% |
| Operating profit margin | 3.47% | 3.49% | 0.72% | 1.58% | 6.58% |
| Pretax margin | -1.47% | 0.00% | -4.33% | -0.84% | 5.73% |
| Net profit margin | -0.98% | -0.98% | -3.99% | -1.10% | 3.91% |
Based on the provided data, we can see a significant variation in Amentum Holdings Inc.'s profitability ratios over the years.
1. Gross Profit Margin:
- The gross profit margin indicates the percentage of revenue that exceeds the cost of goods sold. Amentum's gross profit margin decreased from 15.46% in December 2021 to 9.51% in December 2024, showing a declining trend. This suggests that the company's ability to generate profits from its core operations has weakened over time.
2. Operating Profit Margin:
- The operating profit margin reflects the proportion of revenue that translates into operating income after accounting for operating expenses. Amentum experienced a decline in its operating profit margin from 6.58% in December 2021 to 3.47% in December 2024. This downward trend indicates challenges in managing operational costs efficiently.
3. Pretax Margin:
- The pretax margin signifies the percentage of revenue remaining after deducting all expenses except for taxes. Amentum showed a fluctuating pretax margin, turning negative in December 2022 and December 2023, and ending at -1.47% in December 2024. This indicates that the company faced difficulties in generating profits before accounting for taxes in those years.
4. Net Profit Margin:
- The net profit margin represents the percentage of revenue remaining as net income after all expenses, including taxes. Amentum's net profit margin ranged from positive to negative values, with a downward trend, ending at -0.98% in December 2024. This shows that the company struggled to maintain profitability, as its net income as a percentage of revenue declined over time.
In conclusion, Amentum Holdings Inc. experienced deteriorating profitability ratios over the years, as indicated by declining gross profit, operating profit, pretax, and net profit margins. This suggests challenges in managing costs, generating profits from core operations, and maintaining overall profitability.
Return on investment
| Dec 31, 2024 | Sep 30, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 2.43% | 2.43% | 0.89% | 2.87% | — |
| Return on assets (ROA) | -0.68% | -0.68% | -4.89% | -2.00% | — |
| Return on total capital | 7.06% | 0.00% | 15.23% | 2.73% | — |
| Return on equity (ROE) | -1.84% | -1.84% | -83.82% | -2.59% | — |
Amentum Holdings Inc.'s profitability ratios paint a mixed picture over the years.
1. Operating return on assets (Operating ROA) has shown fluctuations, with a significant drop from 2.87% in December 2022 to 0.89% in December 2023, but a recovery to 2.43% by December 2024.
2. Return on assets (ROA) has been negative in recent years, indicating that the company's net income generated from its assets has been insufficient to cover its operating expenses and other costs. The ROA improved slightly from -4.89% in December 2023 to -0.68% by December 2024.
3. Return on total capital demonstrates varying returns, with a notable increase from 2.73% in December 2022 to 15.23% in December 2023. However, it dropped to 0.00% in September 2024 before recovering to 7.06% by December 2024.
4. Return on equity (ROE) has been consistently negative, illustrating that the company has not been generating positive returns relative to shareholders' equity. The ROE showed a sharp decline from -2.59% in December 2022 to -83.82% in December 2023, but stabilized at -1.84% in both September and December 2024.
In summary, Amentum Holdings Inc. has experienced fluctuations and challenges in its profitability metrics, with some metrics showing improvement in recent periods while others remain in negative territory. The company may need to focus on enhancing operational efficiency and profitability to achieve sustainable growth and shareholder value.