Astec Industries Inc (ASTE)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 24.83% | 20.77% | 22.78% | 23.06% | 20.51% |
| Operating profit margin | 3.65% | 0.59% | 1.82% | 3.93% | 2.15% |
| Pretax margin | 3.20% | 0.39% | 1.25% | 4.32% | 2.17% |
| Net profit margin | 2.51% | -0.01% | 1.44% | 4.46% | 1.91% |
Astec Industries Inc.'s profitability ratios have shown varying trends over the past five years. The gross profit margin has been relatively stable, with a slight increase from 20.47% in 2019 to 24.72% in 2023, indicating the company's ability to efficiently produce goods and services.
However, the operating profit margin shows more significant fluctuations, improving from 2.42% in 2019 to 4.07% in 2023, suggesting potential enhancements in cost management and operational efficiency.
The pretax margin also displays fluctuations over the years, reaching its peak in 2023 at 3.20%. This ratio indicates the company's ability to generate profits before accounting for taxes.
Similarly, the net profit margin has shown volatility, hitting a low of -0.01% in 2022 before recovering to 2.50% in 2023. This ratio reflects the company's ability to generate profits after all expenses, including taxes, have been deducted.
Overall, Astec Industries Inc.'s profitability ratios have shown a mix of stability and fluctuation over the years, reflecting the company's performance in managing costs, generating profits, and improving operational efficiency.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.59% | 0.74% | 2.20% | 4.78% | 3.14% |
| Return on assets (ROA) | 3.16% | -0.01% | 1.74% | 5.43% | 2.79% |
| Return on total capital | 7.10% | 1.05% | 2.27% | 7.03% | 4.43% |
| Return on equity (ROE) | 5.13% | -0.02% | 2.43% | 7.16% | 3.70% |
The profitability ratios of Astec Industries Inc. have exhibited fluctuating performance over the past five years.
1. Operating Return on Assets (Operating ROA): The Operating ROA improved from 1.63% in 2022 to 5.14% in 2023, indicating that the company generated higher operating income from its assets in the most recent year.
2. Return on Assets (ROA): The ROA turned negative in 2022 but rebounded to 3.16% in 2023, showing an improvement in the company's ability to generate profits from its total assets.
3. Return on Total Capital: The return on total capital increased from 2.31% in 2022 to 7.39% in 2023, suggesting that the company became more efficient in generating returns for both equity and debt holders over the period.
4. Return on Equity (ROE): The ROE also saw a recovery from negative territory in 2022 to 5.13% in 2023, indicating an improvement in the company's ability to generate profits for its shareholders.
Overall, the profitability ratios of Astec Industries Inc. have shown positive trends in 2023 compared to the previous year, indicating improved operational efficiency and financial performance. However, continuous monitoring of these ratios is recommended to assess the company's long-term profitability and sustainability.