Smith AO Corporation (AOS)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 38.14% | 38.66% | 35.51% | 37.09% | 38.37% |
| Operating profit margin | 18.54% | 19.41% | 9.67% | 19.29% | 17.42% |
| Pretax margin | 18.36% | 19.10% | 5.97% | 17.70% | 15.37% |
| Net profit margin | 13.98% | 14.49% | 6.29% | 13.78% | 11.94% |
Smith AO Corporation's profitability ratios show a fluctuating trend over the past five years. The gross profit margin has slightly decreased from 38.37% in 2020 to 35.51% in 2022 but then rebounded to 38.14% in 2024. This indicates the company's ability to generate profit after accounting for the cost of goods sold.
The operating profit margin experienced significant variability, ranging from 9.67% in 2022 to a high of 19.41% in 2023. Despite the fluctuations, the company managed to maintain healthy operating profitability levels over the period.
The pretax margin also showed a mixed performance, with a substantial decline to 5.97% in 2022 followed by a recovery to 18.36% in 2024. This ratio reflects the company's profitability before accounting for taxes.
Lastly, the net profit margin, which indicates the company's bottom-line profitability, fluctuated between 6.29% and 14.49% during the period. This metric remained fairly stable overall, suggesting that the company was able to effectively manage expenses and taxes to retain a reasonable level of profit.
In conclusion, despite some fluctuations, Smith AO Corporation has demonstrated an overall ability to maintain satisfactory levels of profitability over the past five years.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 21.84% | 23.20% | 10.86% | 19.63% | 15.92% |
| Return on assets (ROA) | 16.47% | 17.32% | 7.07% | 14.02% | 10.91% |
| Return on total capital | 34.24% | 38.00% | 11.19% | 31.15% | 23.08% |
| Return on equity (ROE) | 28.33% | 30.18% | 13.49% | 26.59% | 18.66% |
Smith AO Corporation's profitability ratios show a positive trend over the five-year period analyzed.
- Operating return on assets (Operating ROA) increased from 15.92% in 2020 to 23.20% in 2023 before slightly decreasing to 21.84% in 2024. This indicates the company's efficiency in generating operating income relative to its total assets improved significantly during the period.
- Return on assets (ROA) also exhibited a similar upward trend, rising from 10.91% in 2020 to 17.32% in 2023, before settling at 16.47% in 2024. This metric signifies the company's ability to generate profits from its total assets increased consistently over the years.
- Return on total capital experienced significant growth, climbing from 23.08% in 2020 to 38.00% in 2023, and then remaining at a high level of 34.24% in 2024. This indicates that the company's efficiency in generating returns from both debt and equity capital improved substantially over the period.
- Return on equity (ROE), a key metric for shareholders, also showed positive growth, increasing from 18.66% in 2020 to 30.18% in 2023, before slightly decreasing to 28.33% in 2024. This demonstrates the company's ability to generate returns for its shareholders from the equity invested in the business.
Overall, the increasing trend in these profitability ratios suggests that Smith AO Corporation has been effectively utilizing its assets and capital to generate profits and create value for its shareholders during the period under review.