Api Group Corp (APG)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 31.03% | 28.00% | 26.14% | 23.83% | 21.08% |
| Operating profit margin | 6.90% | 5.18% | 2.47% | 3.45% | 0.86% |
| Pretax margin | 4.70% | 3.35% | 1.42% | 2.01% | -5.13% |
| Net profit margin | 3.56% | 2.21% | 1.11% | 1.19% | -4.27% |
The profitability ratios of Api Group Corp from December 31, 2020, to December 31, 2024, indicate a consistent improvement in the company's ability to generate profits across various metrics over this period.
Starting with the gross profit margin, there has been a steady upward trend, increasing from 21.08% in 2020 to 31.03% in 2024. This suggests an enhanced capacity to manage cost of goods sold relative to revenue, reflecting improved pricing strategies, cost control, or product mix.
The operating profit margin also exhibits positive movement, rising from 0.86% in 2020 to 6.90% in 2024. The increase indicates better operational efficiency and profitability, as the company has been able to convert more of its gross profits into operating income each year.
Pre-tax margin shows a significant turnaround from a negative figure of -5.13% in 2020 to a positive 4.70% in 2024. This improvement points to the company’s ability to reduce operational and non-operational expenses relative to its revenues, as well as its capacity to generate pre-tax profits.
The net profit margin, which measures overall profitability after all expenses, also reflects a positive trajectory, moving from -4.27% in 2020 to 3.56% in 2024. The transition from negative to positive margins signals a recovery in overall profitability and suggests that the company has achieved better control over expenses and improved revenues relative to costs.
Overall, Api Group Corp’s profitability ratios over the analyzed period depict a favorable trend of increasing profitability margins. The company's strategic and operational enhancements appear to have contributed to a progressively stronger financial position, with improvements spanning gross profit, operating profit, pre-tax, and net profit margins.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.94% | 4.73% | 2.00% | 2.64% | 0.76% |
| Return on assets (ROA) | 3.07% | 2.02% | 0.90% | 0.91% | -3.76% |
| Return on total capital | 16.12% | 13.15% | 10.72% | 5.85% | -8.47% |
| Return on equity (ROE) | 8.47% | 5.33% | 3.43% | 2.02% | -9.82% |
The profitability ratios of Api Group Corp demonstrate a consistent upward trend over the period from December 31, 2020, to December 31, 2024, indicating improving financial performance and enhanced efficiency in generating profits from the company's assets and equity.
The Operating Return on Assets (Operating ROA) increased markedly from 0.76% in 2020 to 4.73% in 2023, reaching 5.94% in 2024. This ratio's steady growth suggests that the company has become more effective at utilizing its assets to generate operating income, reflecting operational improvements and possibly more efficient asset management.
The Return on Assets (ROA), which considers net income after all expenses including interest and taxes, showed a significant recovery from a negative value of -3.76% in 2020. It improved to 0.91% in 2021 and stabilized around 0.90% in 2022 before continuing its upward trajectory to 2.02% in 2023 and further to 3.07% in 2024. This progression indicates a return to profitability at the net income level and a strengthening of the company's overall earning capacity relative to its total assets.
Return on Total Capital (ROTC) exhibits a notable turnaround following negative figures of -8.47% in 2020. It improved sharply in 2021 to 5.85%, continued to ascend to 10.72% in 2022, and further to 13.15% in 2023, reaching 16.12% in 2024. This trend reflects an increasing ability to generate profits from all sources of capital employed, including debt and equity, signifying efficient capital utilization and an improved cost of capital management.
The Return on Equity (ROE) also demonstrated robust growth, rising from -9.82% in 2020 to 2.02% in 2021, then further to 3.43% in 2022. The ratio continued its upward movement, reaching 5.33% in 2023 and ultimately 8.47% in 2024, indicating that shareholders are experiencing increasing returns on their investments. This sustained improvement in ROE underscores the company's enhanced profitability at the equity level and possibly more effective leveraging strategies.
Overall, the comprehensive analysis of Api Group Corp's profitability ratios over the specified period indicates a strong and consistent recovery from prior losses, coupled with ongoing growth in earning efficiency, capital deployment, and shareholder returns. The company’s profitability improvements suggest a positive trend in operational effectiveness and financial management.