Smith AO Corporation (AOS)
Profitability ratios
Return on sales
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 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% | 39.57% | 40.14% | 40.50% | 40.64% |
| Operating profit margin | 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% | 17.73% | 18.59% | 19.05% | 19.09% |
| Pretax margin | 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% | 15.82% | 16.79% | 17.25% | 17.31% |
| Net profit margin | 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% | 12.40% | 13.30% | 13.74% | 13.84% |
A.O. Smith Corp.'s profitability ratios have shown a positive trend over the quarters.
The gross profit margin has been gradually increasing, indicating the company's ability to control its cost of goods sold and generate a higher percentage of revenue as gross profit. This can be attributed to the company's effective management of production costs and pricing strategies.
The operating profit margin, which reflects the company's efficiency in managing its operating expenses, has also been consistently improving. A higher operating profit margin suggests that the company has been able to control its operating costs effectively while increasing its revenues.
The pretax margin has shown some fluctuations but generally follows an upward trend. This ratio measures how efficiently the company is able to generate profits before accounting for income taxes. The improvement in this ratio indicates that the company's operational performance has been strengthening over time.
The net profit margin, which represents the company's bottom-line profitability after all expenses, including taxes, has also been on an upward trajectory. This indicates that A.O. Smith Corp. is effectively managing its expenses and taxes to generate higher net profits relative to its total revenue.
Overall, the improving trend in all profitability ratios suggests that A.O. Smith Corp. is making efficient use of its resources and successfully increasing its profitability over the analyzed quarters.
Return on investment
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 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% | 17.30% | 18.46% | 18.43% | 19.08% |
| Return on assets (ROA) | 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% | 12.10% | 13.20% | 13.30% | 13.83% |
| Return on total capital | 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% | 24.85% | 26.50% | 25.97% | 27.24% |
| Return on equity (ROE) | 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% | 22.20% | 24.45% | 24.48% | 24.85% |
A.O. Smith Corp's profitability ratios have shown a generally positive trend over the past eight quarters. The Operating return on assets (Operating ROA) has consistently improved, reaching a high of 23.57% in Q4 2023, indicating the company's ability to generate operating income from its assets.
The Return on assets (ROA) also displays a favorable trend, with the ratio increasing over the quarters and reaching 17.32% in Q4 2023. This indicates the company's efficiency in generating profits from its total assets.
Additionally, the Return on total capital and Return on equity (ROE) ratios have shown consistent improvement, demonstrating A.O. Smith Corp's effectiveness in generating returns for both its total invested capital and equity shareholders. The Return on equity ratio, in particular, has shown a significant increase, reaching 30.18% in Q4 2023.
Overall, A.O. Smith Corp's profitability ratios reflect a strong performance and efficient utilization of its assets and capital to generate profits for its shareholders.