Smith AO Corporation (AOS)
Profitability ratios
Return on sales
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 38.15% | 38.23% | 38.40% | 38.78% | 38.66% | 38.65% | 37.94% | 36.51% | 35.51% | 35.25% | 35.79% | 36.44% | 37.09% | 37.76% | 38.24% | 38.29% | 38.36% | 38.47% | 38.46% | 39.25% |
| Operating profit margin | 18.54% | 20.84% | 21.10% | 21.56% | 21.08% | 12.11% | 11.52% | 10.17% | 9.67% | 18.80% | 18.98% | 19.14% | 19.29% | 19.37% | 19.42% | 18.55% | 17.42% | 16.54% | 15.87% | 16.91% |
| Pretax margin | 18.36% | 18.83% | 19.18% | 19.58% | 19.10% | 8.28% | 7.57% | 6.39% | 5.97% | 17.04% | 17.42% | 17.53% | 17.70% | 17.65% | 17.60% | 16.62% | 15.37% | 14.53% | 13.82% | 14.91% |
| Net profit margin | 13.98% | 14.42% | 14.69% | 14.97% | 14.49% | 7.90% | 7.35% | 6.51% | 6.29% | 13.02% | 13.44% | 13.60% | 13.78% | 13.85% | 13.71% | 12.93% | 11.94% | 11.27% | 10.75% | 11.57% |
Smith AO Corporation's profitability ratios have shown some fluctuations over the years.
- Gross Profit Margin: The trend in the gross profit margin has been declining from 39.25% on March 31, 2020, to 38.15% on December 31, 2024. This indicates that the company is generating less gross profit from its revenue over time.
- Operating Profit Margin: The operating profit margin shows a mixed trend, with fluctuations throughout the period. There was a significant drop from 19.29% on December 31, 2021, to 9.67% on December 31, 2022, indicating a profitability issue. However, it recovered towards the end of the period, reaching 18.54% on December 31, 2024.
- Pretax Margin: The pretax margin also experienced fluctuations, with a notable decline from 17.04% on September 30, 2022, to 5.97% on December 31, 2022. However, it improved in the following periods, reaching 18.58% on December 31, 2024.
- Net Profit Margin: The net profit margin followed a similar pattern to the pretax margin, with a significant decline from 13.44% on June 30, 2022, to 6.29% on December 31, 2022. It recovered thereafter, reaching 13.98% on December 31, 2024.
Overall, while there have been fluctuations in profitability ratios, the company managed to stabilize and improve its margins by the end of the period, indicating a potential recovery in profitability. However, the company should monitor and address the factors causing the fluctuations to ensure sustained profitability in the future.
Return on investment
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 21.84% | 25.71% | 25.90% | 26.12% | 25.19% | 14.32% | 13.20% | 11.37% | 10.86% | 22.14% | 21.99% | 20.85% | 19.63% | 19.82% | 19.91% | 18.04% | 15.92% | 15.61% | 14.74% | 16.28% |
| Return on assets (ROA) | 16.47% | 17.79% | 18.03% | 18.14% | 17.32% | 9.35% | 8.42% | 7.28% | 7.07% | 15.33% | 15.57% | 14.82% | 14.02% | 14.17% | 14.05% | 12.58% | 10.91% | 10.64% | 9.99% | 11.14% |
| Return on total capital | 34.24% | 36.43% | 37.16% | 38.36% | 38.00% | 16.38% | 14.22% | 11.80% | 11.19% | 32.32% | 32.44% | 31.51% | 31.15% | 30.04% | 29.81% | 26.09% | 23.08% | 22.45% | 20.35% | 22.51% |
| Return on equity (ROE) | 28.33% | 29.28% | 30.16% | 30.68% | 30.18% | 15.89% | 14.49% | 13.56% | 13.49% | 28.34% | 28.85% | 28.15% | 26.59% | 24.65% | 24.30% | 21.14% | 18.66% | 18.10% | 17.98% | 20.57% |
Smith AO Corporation's profitability ratios show a generally positive trend over the years with fluctuations in some periods.
The Operating Return on Assets (Operating ROA) increased steadily from March 2020 to March 2024, indicating that the company's operating profits generated from its assets improved consistently. However, there was a significant drop in Operating ROA in December 2022, as well as a slight decrease in the subsequent quarters.
The Return on Assets (ROA) also displayed an upward trajectory from March 2020 to December 2024, although there were fluctuations in some quarters. The ROA peaked in December 2024, suggesting that the company's ability to generate profits from its total assets reached its highest point at that time.
Return on Total Capital demonstrated a similar pattern of improvement over the years, reflecting the company's efficiency in generating returns from its total capital investment. The ratio escalated until March 2024, followed by a slight decline in the subsequent quarters.
Lastly, the Return on Equity (ROE) exhibited a consistent upward trend from March 2020 to December 2024, indicating an increase in profitability relative to shareholders' equity. Although there were fluctuations in some quarters, the overall trend remained positive, with ROE reaching its peak in March 2024.
Overall, Smith AO Corporation's profitability ratios reflect a positive performance, with improvements in operating efficiency, asset utilization, capital returns, and shareholder profitability over the analyzed period.