Amphenol Corporation (APH)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 33.76% | 32.53% | 31.91% | 31.28% | 30.98% |
| Operating profit margin | 20.74% | 20.39% | 20.48% | 19.35% | 19.05% |
| Pretax margin | 19.67% | 19.41% | 19.43% | 18.39% | 17.64% |
| Net profit margin | 15.92% | 15.36% | 15.07% | 14.63% | 13.99% |
Amphenol Corporation has demonstrated consistent improvement in its profitability ratios over the last five years.
- Gross Profit Margin: The company's gross profit margin has increased steadily from 30.98% in 2020 to 33.76% in 2024. This indicates the company's ability to control production costs and generate more profit from its core business operations.
- Operating Profit Margin: Similarly, the operating profit margin has shown a positive trend, rising from 19.05% in 2020 to 20.74% in 2024. This suggests effective management of operating expenses and higher efficiency in converting revenues into operating profits.
- Pretax Margin: The pretax margin has also improved over the years, reflecting the company's ability to manage non-operating expenses and generate higher income before taxes. It increased from 17.64% in 2020 to 19.67% in 2024.
- Net Profit Margin: Amphenol Corporation has consistently grown its net profit margin from 13.99% in 2020 to 15.92% in 2024. This indicates the company's ability to effectively manage all costs, including taxes and interest, to generate higher profits for its shareholders.
Overall, the increasing trend in profitability margins demonstrates Amphenol Corporation's financial strength and efficient management of its operations to drive profitability and create value for its stakeholders.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 14.72% | 15.49% | 16.87% | 14.34% | 13.29% |
| Return on assets (ROA) | 11.31% | 11.67% | 12.41% | 10.84% | 9.76% |
| Return on total capital | 19.67% | 21.32% | 23.05% | 18.71% | 17.33% |
| Return on equity (ROE) | 24.75% | 23.10% | 27.12% | 25.24% | 22.35% |
Amphenol Corporation's profitability ratios have displayed a positive trend over the past five years. The Operating Return on Assets (Operating ROA) has steadily increased from 13.29% in 2020 to 14.72% in 2024, indicating the company's efficiency in generating operating income relative to its total assets.
Similarly, the Return on Assets (ROA) has also shown improvement, rising from 9.76% in 2020 to 11.31% in 2024. This metric reflects the company's ability to generate profits from its total assets, including both operating and non-operating activities.
Furthermore, the Return on Total Capital has exhibited a strong growth trajectory, increasing from 17.33% in 2020 to 19.67% in 2024. This ratio demonstrates how effectively the company is utilizing its total capital to generate returns for its stakeholders.
Lastly, the Return on Equity (ROE) has fluctuated slightly but remained relatively high, ranging from 22.35% in 2020 to 27.12% in 2022 before stabilizing at 24.75% in 2024. The ROE signifies the company's ability to generate returns for its shareholders based on their equity investment.
Overall, the profitability ratios of Amphenol Corporation highlight its efficient use of assets and capital to generate profits, indicating a strong financial performance and effective management of resources.