Smith AO Corporation (AOS)
Net profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 556,600 | 235,700 | 487,100 | 344,900 | 370,000 |
| Revenue | US$ in thousands | 3,840,800 | 3,744,500 | 3,534,600 | 2,888,000 | 2,981,700 |
| Net profit margin | 14.49% | 6.29% | 13.78% | 11.94% | 12.41% |
December 31, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $556,600K ÷ $3,840,800K
= 14.49%
The net profit margin of A.O. Smith Corp. has fluctuated over the past five years. In 2023, the net profit margin stood at 14.45%, a significant improvement from the previous year's 6.28%. This increase indicates enhanced profitability, as the company was able to generate higher net income relative to its revenue. Comparing to 2021 and 2020 where the net profit margin was 13.76% and 11.91% respectively, this current ratio reflects continued growth in profitability.
However, when comparing the current net profit margin to 2019 where it was 12.36%, it is evident that the company's profitability in 2023 has slightly surpassed the levels from four years ago. Overall, the improving trend in net profit margin suggests that A.O. Smith Corp. has been effectively managing its costs and operations, leading to enhanced profitability in the most recent financial year.
Peer comparison
Dec 31, 2023