Astec Industries Inc (ASTE)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 25.12% | 24.72% | 20.72% | 22.94% | 23.44% |
| Operating profit margin | 1.78% | 3.63% | 1.25% | 2.01% | 4.20% |
| Pretax margin | 1.07% | 3.20% | 0.35% | 1.50% | 4.46% |
| Net profit margin | 0.33% | 2.50% | -0.05% | 1.44% | 4.49% |
Astec Industries Inc's profitability ratios have shown varying performance over the past five years.
1. Gross Profit Margin: The gross profit margin has fluctuated, starting at 23.44% in 2020, decreasing to 20.72% in 2022, and then increasing to 25.12% in 2024. This indicates the company's ability to generate profits after accounting for the cost of goods sold.
2. Operating Profit Margin: The operating profit margin has also fluctuated, starting at 4.20% in 2020, decreasing to 1.25% in 2022, and then moderately increasing to 1.78% in 2024. This ratio reflects the company's ability to generate profit from its core operations.
3. Pretax Margin: The pretax margin experienced significant fluctuations, starting at 4.46% in 2020, dropping to 0.35% in 2022, and then recovering to 1.07% in 2024. This ratio reveals the company's profitability before accounting for taxes.
4. Net Profit Margin: The net profit margin has been inconsistent, starting at 4.49% in 2020, falling to -0.05% in 2022, and then improving to 0.33% in 2024. This ratio indicates the percentage of revenue that translates into net income after all expenses have been deducted.
In summary, Astec Industries Inc's profitability ratios have shown mixed results over the years, with fluctuations in gross, operating, pretax, and net profit margins. This suggests the company has faced challenges in maintaining consistent profitability levels, and further analysis is necessary to identify the factors influencing these fluctuations.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 2.22% | 4.59% | 1.57% | 2.43% | 5.07% |
| Return on assets (ROA) | 0.41% | 3.16% | -0.06% | 1.73% | 5.42% |
| Return on total capital | 3.86% | 7.91% | 6.89% | 4.75% | 7.64% |
| Return on equity (ROE) | 0.67% | 5.13% | -0.10% | 2.41% | 7.15% |
Astec Industries Inc's profitability ratios show fluctuations over the years.
1. Operating return on assets (Operating ROA) declined from 5.07% in 2020 to 1.57% in 2022 but improved to 4.59% in 2023 and then decreased to 2.22% in 2024. This ratio indicates the company's operating profitability relative to its total assets.
2. Return on assets (ROA) also experienced variability, starting at 5.42% in 2020, dropping to -0.06% in 2022, and recovering to 3.16% in 2023 before decreasing to 0.41% in 2024. ROA reflects the company's overall efficiency in generating profits from its assets.
3. Return on total capital reflects a similar pattern, starting at 7.64% in 2020, decreasing to 4.75% in 2021, improving to 7.91% in 2023, and then declining to 3.86% in 2024. This ratio measures the company's profitability in relation to both debt and equity capital.
4. Return on equity (ROE) also fluctuated, showing a decline from 7.15% in 2020 to -0.10% in 2022, followed by an increase to 5.13% in 2023 and then a drop to 0.67% in 2024. ROE represents the return generated for shareholders' equity.
Overall, the profitability ratios of Astec Industries Inc indicate a mixed performance over the years, with some ratios showing improvement while others experienced declines. It is essential for the company to closely monitor and manage its profitability metrics to ensure sustainable growth and value creation for its stakeholders.