Aptiv PLC (APTV)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 5.41% | 4.28% | 3.32% | 3.60% | 14.85% |
| Operating profit margin | 9.34% | 7.78% | 7.22% | 7.61% | 16.21% |
| Pretax margin | 10.20% | 5.04% | 4.09% | 4.42% | 14.18% |
| Net profit margin | 9.07% | 14.65% | 3.40% | 3.78% | 13.81% |
Aptiv PLC's profitability ratios reflect fluctuating performance over the years. The gross profit margin declined from 14.85% in 2020 to 3.32% in 2022 but showed a slight recovery to 5.41% by 2024. This suggests challenges in maintaining a high level of profitability from its core operations.
The operating profit margin, which indicates efficiency in core operations, also saw a decrease from 16.21% in 2020 to 7.22% in 2022 before showing improvement to 9.34% by 2024. This indicates that Aptiv PLC struggled with controlling operating expenses during this period.
The pretax margin decreased significantly from 14.18% in 2020 to 4.09% in 2022, suggesting challenges in managing pre-tax profitability. However, there was a notable recovery to 10.20% by 2024, indicating improvements in the company's overall financial performance.
Lastly, the net profit margin experienced a sharp decline from 13.81% in 2020 to 3.40% in 2022 before rebounding to 9.07% by 2024. This indicates a fluctuating bottom-line performance, with challenges in generating profits after considering all expenses.
Overall, Aptiv PLC's profitability ratios reflect a mixed performance, with periods of decline followed by some recovery. The company may need to focus on cost management, operational efficiency, and revenue generation strategies to enhance its profitability in the future.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.85% | 6.38% | 5.77% | 6.60% | 12.09% |
| Return on assets (ROA) | 7.62% | 12.03% | 2.71% | 3.28% | 10.30% |
| Return on total capital | 14.11% | 7.29% | 6.12% | 6.78% | 16.93% |
| Return on equity (ROE) | 20.32% | 25.44% | 6.74% | 7.07% | 22.82% |
Aptiv PLC's profitability ratios displayed varying trends over the years.
1. Operating return on assets (Operating ROA) decreased from 12.09% in 2020 to 5.77% in 2022, before showing a slight improvement to 7.85% in 2024. This indicates a decline in the company's ability to generate operating income from its assets, with a partial recovery towards the end of the period.
2. Return on assets (ROA) saw fluctuations, dropping sharply from 10.30% in 2020 to 2.71% in 2022, before significantly rising to 12.03% in 2023 and then stabilizing at 7.62% in 2024. The abrupt decrease in 2022 was followed by a strong recovery and eventual stabilization, indicating variability in profitability relative to total assets.
3. Return on total capital declined from 16.93% in 2020 to 6.12% in 2022 before increasing to 14.11% in 2024. This fluctuation suggests changes in the company's efficiency in generating profits from its total invested capital over the years.
4. Return on equity (ROE) displayed a similar trend, dropping from 22.82% in 2020 to 6.74% in 2022, then rising to 25.44% in 2023, and finally settling at 20.32% in 2024. The significant variability in ROE indicates fluctuations in profitability relative to shareholders' equity, with periods of decline and recovery within the analyzed timeframe.
Overall, Aptiv PLC's profitability ratios reflect a mix of fluctuations and recoveries in different periods, highlighting the company's changing ability to generate profits from its assets, total capital, and shareholder equity over the years.