Amphenol Corporation (APH)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 32.53% | 31.91% | 31.28% | 30.98% | 31.80% |
| Operating profit margin | 20.39% | 20.48% | 19.35% | 19.05% | 19.69% |
| Pretax margin | 19.41% | 19.43% | 18.39% | 17.64% | 18.08% |
| Net profit margin | 15.36% | 15.07% | 14.63% | 13.99% | 14.04% |
Amphenol Corp. has shown consistent improvement in its profitability margins over the past five years. The Gross profit margin has increased steadily from 31.80% in 2019 to 32.53% in 2023, indicating efficient cost management and pricing strategies. The Operating profit margin has also remained stable at around 20-21% during this period, highlighting the company's ability to control operating expenses effectively.
Furthermore, the Pretax margin and Net profit margin have demonstrated positive trends, showing an upward trajectory from 2019 to 2023. The Pretax margin increased from 18.19% to 19.55%, while the Net profit margin improved from 14.04% to 15.36% over the same period. These improvements suggest that Amphenol has been successful in managing its tax obligations and generating higher net income relative to its revenues.
Overall, Amphenol Corp.'s profitability ratios reflect a healthy financial performance, with increasing margins signaling efficient operations and sustainable profitability growth.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 15.49% | 16.87% | 14.34% | 13.29% | 14.97% |
| Return on assets (ROA) | 11.67% | 12.41% | 10.84% | 9.76% | 10.68% |
| Return on total capital | 21.32% | 23.05% | 18.71% | 17.33% | 20.29% |
| Return on equity (ROE) | 23.10% | 27.12% | 25.24% | 22.35% | 25.50% |
Amphenol Corp.'s profitability ratios reflect a generally positive trend over the past five years. The operating return on assets (Operating ROA) has shown fluctuation but remained relatively strong, ranging from 13.38% in 2020 to 17.01% in 2022. This ratio indicates the company's ability to generate operating income from its assets, with the 2023 figure at 15.70% demonstrating solid operational efficiency.
The return on assets (ROA) has also exhibited a positive trajectory, increasing from 9.76% in 2020 to 12.41% in 2022, before slightly decreasing to 11.67% in 2023. ROA measures the company's overall profitability in relation to its total assets, and the values indicate that the company effectively utilizes its assets to generate profit.
Return on total capital has consistently shown strong performance, with a notable increase from 17.83% in 2020 to 22.49% in 2022, and then slightly declining to 20.45% in 2023. This ratio reflects the efficiency of the company in generating returns from both equity and debt capital.
The return on equity (ROE) has also demonstrated positive growth over the years, with the 2023 figure at 23.10% showing the company's ability to generate profit from shareholders' equity investment. The ROE has remained above 20% for the past five years, indicating that the company provides a favorable return to its equity investors.
Overall, Amphenol Corp.'s profitability ratios suggest strong operational performance and effective utilization of assets and capital to generate returns for its investors.