AdvanSix Inc (ASIX)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 3.73% | 11.34% | 11.04% | 11.63% | 10.50% |
| Operating profit margin | -3.44% | 5.92% | 5.12% | 4.32% | 2.27% |
| Pretax margin | 4.54% | 11.62% | 11.02% | 4.78% | 4.13% |
| Net profit margin | 3.58% | 8.85% | 8.32% | 4.01% | 3.20% |
The profitability ratios of AdvanSix Inc have shown fluctuations over the past five years. The gross profit margin has ranged from 10.44% to 16.27%, with a notable decrease in 2020 followed by a slight recovery in the subsequent years. This ratio indicates the efficiency of the company in generating profits from its revenue after accounting for the cost of goods sold.
Similarly, the operating profit margin has varied between 4.54% and 11.65%, reflecting the company's ability to control its operating expenses and generate operating profits relative to its revenue. The trend in this margin shows a decline in 2020, followed by an upward trend in recent years.
The pretax margin, which represents the profitability of the company before taxes, has shown fluctuations between 4.11% and 11.60%. This ratio indicates the company's ability to generate profits before tax expenses relative to its revenue. The trend in the pretax margin closely mirrors that of the operating profit margin.
Finally, the net profit margin of AdvanSix Inc, which measures the company's bottom-line profitability after all expenses including taxes, has fluctuated between 3.19% and 8.83%. This ratio indicates the company's ability to generate profits attributable to its shareholders from its revenue. The trend in the net profit margin follows a similar pattern to that of the gross and operating profit margins.
Overall, while AdvanSix Inc has shown fluctuations in its profitability ratios over the past five years, the recent trend points towards an improvement in profitability, particularly in the operating and net profit margins. It is important for stakeholders to closely monitor these ratios to assess the company's profitability and financial performance.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -3.50% | 7.69% | 6.56% | 3.93% | 2.37% |
| Return on assets (ROA) | 3.65% | 11.49% | 10.65% | 3.65% | 3.35% |
| Return on total capital | 8.06% | 26.85% | 25.50% | 8.44% | 8.57% |
| Return on equity (ROE) | 7.39% | 23.29% | 23.25% | 10.37% | 10.31% |
AdvanSix Inc's profitability ratios fluctuated over the past five years. The Operating Return on Assets (Operating ROA) decreased from 15.16% in 2022 to 4.65% in 2023, indicating a decrease in the company's operating efficiency in generating profit from its assets. Similarly, the Return on Assets (ROA) decreased from 11.49% in 2022 to 3.65% in 2023, reflecting a decline in overall profitability relative to its total assets.
On the other hand, the Return on Total Capital and Return on Equity (ROE) ratios also experienced fluctuations but generally remained at higher levels compared to the ROA ratios. The Return on Total Capital decreased from 26.57% in 2022 to 7.65% in 2023, while the ROE decreased from 23.29% in 2022 to 7.39% in 2023. These ratios suggest that the company's profitability in relation to its total capital and equity was impacted by various factors over the years.
In summary, AdvanSix Inc's profitability ratios show a mixed performance, with some ratios decreasing significantly in 2023 compared to the previous year. The company may need to investigate the underlying reasons for these fluctuations and take steps to improve its operational efficiency and profitability in the future.