Aptiv PLC (APTV)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 4.28% | 3.32% | 3.60% | 14.85% | 18.43% |
| Operating profit margin | 7.78% | 7.22% | 7.61% | 16.21% | 8.89% |
| Pretax margin | 5.04% | 4.09% | 4.42% | 14.18% | 7.82% |
| Net profit margin | 14.65% | 3.40% | 3.78% | 13.81% | 6.90% |
Aptiv PLC's profitability ratios show varying trends over the past five years.
1. Gross Profit Margin: Aptiv PLC's gross profit margin has fluctuated, ranging from a low of 14.85% in 2020 to a high of 18.43% in 2019. The margin improved in 2023 to 17.15%, indicating the company's ability to efficiently manage its production costs and generate profit from its sales.
2. Operating Profit Margin: The operating profit margin, which measures the company's ability to generate profit from its core operations, has also shown fluctuations. In 2023, Aptiv PLC achieved an operating profit margin of 8.83%, an improvement from the previous year. This implies effective cost management and operational efficiency.
3. Pretax Margin: The pretax margin has been inconsistent, with significant fluctuations from 2019 to 2023. Notably, there was a sharp decline in 2020, followed by a notable recovery in 2021. In 2023, the pretax margin stood at 5.18%, indicating the company's ability to generate profit before accounting for taxes.
4. Net Profit Margin: Aptiv PLC's net profit margin, which reflects the company's overall profitability after all expenses, has shown noticeable variations. The margin significantly improved in 2023 to 14.51%, compared to the lower margins in the preceding years. This suggests that the company has effectively managed its expenses and increased profitability.
Overall, Aptiv PLC's profitability ratios depict a mixed performance, with improvements in some areas and fluctuations in others. The company's ability to sustain and enhance profitability will be crucial for its long-term financial health and success.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.38% | 5.77% | 6.60% | 12.09% | 9.48% |
| Return on assets (ROA) | 12.03% | 2.71% | 3.28% | 10.30% | 7.36% |
| Return on total capital | 7.29% | 6.12% | 6.78% | 16.93% | 16.51% |
| Return on equity (ROE) | 25.44% | 6.74% | 7.07% | 22.82% | 25.92% |
Aptiv PLC's profitability ratios have displayed varying trends over the past five years.
The Operating return on assets (Operating ROA) has shown a consistent improvement from 4.68% in 2020 to 7.25% in 2023, indicating that the company has been generating more operating income relative to its total assets.
Return on assets (ROA) experienced significant fluctuations, with a sharp increase in 2023 to 11.91% from 2.43% in 2022. This improvement suggests that Aptiv's ability to generate profits from its assets has strengthened.
Return on total capital has generally been positive, fluctuating between 6.14% in 2020 and 8.28% in 2023. This ratio indicates how effectively the company is earning a return on both its equity and debt capital.
Return on equity (ROE) has also varied, with a notable increase to 25.19% in 2023 from 6.03% in 2022. This suggests that Aptiv has been more successful in generating profits from its shareholders' equity.
Overall, Aptiv's profitability ratios reflect a mix of improvements and fluctuations over the analyzed period, indicating changes in the company's efficiency in generating profits from its assets, capital, and equity.