AdvanSix Inc (ASIX)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 10.08% | 10.76% | 16.16% | 16.27% | 11.55% |
| Operating profit margin | 3.88% | 4.54% | 11.75% | 11.29% | 5.43% |
| Pretax margin | 3.00% | 4.51% | 11.60% | 10.99% | 4.75% |
| Net profit margin | 2.91% | 3.56% | 8.83% | 8.30% | 3.98% |
AdvanSix Inc's profitability ratios have shown some fluctuation over the past five years.
1. Gross Profit Margin: The gross profit margin has varied between 10.08% and 16.27% during this period, with the highest being in 2021. The company's ability to generate profits from its core operations improved over time but declined in 2023 and 2024.
2. Operating Profit Margin: The operating profit margin has ranged from 3.88% to 11.75%. There was a significant increase in 2021, indicating improved operational efficiency, but the margin decreased in the following years, reaching its lowest point in 2024.
3. Pretax Margin: The pretax margin fluctuated between 3.00% and 11.60%. The company's ability to generate profit before taxes was strongest in 2022 but declined in subsequent years.
4. Net Profit Margin: The net profit margin ranged from 2.91% to 8.83%. Similar to other profitability ratios, the net profit margin peaked in 2022 and then decreased in 2023 and 2024.
Overall, AdvanSix Inc's profitability has shown some volatility, with improvements in some years followed by declines. This indicates that the company may have faced challenges in maintaining consistent profitability over the period analyzed.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.69% | 4.65% | 15.29% | 14.49% | 4.97% |
| Return on assets (ROA) | 2.77% | 3.65% | 11.49% | 10.65% | 3.65% |
| Return on total capital | 7.34% | 10.38% | 30.96% | 31.63% | 14.15% |
| Return on equity (ROE) | 5.70% | 7.39% | 23.29% | 23.25% | 10.37% |
AdvanSix Inc's profitability ratios show varying trends over the years.
1. Operating Return on Assets (Operating ROA):
- AdvanSix's Operating ROA increased from 4.97% in 2020 to 15.29% in 2022, indicating improved operational efficiency and profitability during this period. However, there was a decline to 3.69% in 2024, which may suggest challenges in maintaining profitability from operating activities.
2. Return on Assets (ROA):
- The company's ROA witnessed growth from 3.65% in 2020 to 11.49% in 2022. Subsequently, there was a decrease to 2.77% in 2024, signaling a decline in the company's overall efficiency in generating profits from its assets.
3. Return on Total Capital:
- The Return on Total Capital for AdvanSix showed a strong performance in 2021 with 31.63%, indicating efficient utilization of both debt and equity. However, there was a decline in subsequent years, reaching 7.34% in 2024, which might indicate challenges in generating returns on the total invested capital.
4. Return on Equity (ROE):
- AdvanSix's ROE improved from 10.37% in 2020 to 23.29% in 2022, reflecting increased profitability for shareholders. Nevertheless, there was a decline to 5.70% in 2024, suggesting a lower return for equity investors compared to previous years.
In summary, while AdvanSix Inc demonstrated periods of improved profitability in certain years, there were also instances of declining returns across various ratios in subsequent years. This analysis indicates fluctuations in the company's ability to generate profits relative to its assets, capital, and equity, which could be influenced by internal operational factors and external market conditions.