Allegheny Technologies Incorporated (ATI)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 19.82% | 19.87% | 12.59% | 10.24% | 15.64% |
| Operating profit margin | 11.52% | 7.99% | 4.44% | -45.57% | 8.98% |
| Pretax margin | 6.98% | 4.07% | -0.43% | -52.29% | 5.49% |
| Net profit margin | 10.14% | 3.64% | -1.44% | -55.01% | 6.19% |
ATI Inc has shown consistent improvement in its profitability ratios over the past five years. The gross profit margin has steadily increased from 15.47% in 2019 to 19.23% in 2023. This indicates that the company has been able to effectively manage its cost of goods sold and generate a higher percentage of revenue as gross profit.
The operating profit margin has also shown a positive trend, rising from 8.73% in 2019 to 11.37% in 2023. This suggests that ATI Inc has been able to control its operating expenses and improve operational efficiency, leading to a higher percentage of operating income relative to revenue.
The pretax margin has significantly improved over the years, from -49.69% in 2020 to 7.07% in 2023. This indicates that the company has been able to effectively manage its pre-tax income and reduce losses, ultimately generating a positive pre-tax margin.
Net profit margin has also shown a remarkable improvement, increasing from -52.73% in 2020 to 9.84% in 2023. This indicates a significant increase in profitability after accounting for all expenses and taxes, reflecting ATI Inc’s ability to generate a higher percentage of net income relative to revenue.
Overall, the positive trends in ATI Inc's profitability ratios suggest improving operational efficiency, effective cost management, and a stronger bottom line performance over the years.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.36% | 6.46% | 2.74% | -32.29% | 6.50% |
| Return on assets (ROA) | 8.24% | 2.94% | -0.89% | -38.97% | 4.48% |
| Return on total capital | 33.97% | 27.47% | 17.15% | -249.99% | 17.53% |
| Return on equity (ROE) | 29.92% | 12.52% | -5.57% | -301.78% | 12.08% |
ATI Inc's profitability ratios have shown a mixed performance over the past five years.
1. Operating return on assets (Operating ROA) has been relatively stable, with an average of 6.97% over the period. The ratio increased from 6.39% in 2019 to 9.52% in 2023, indicating an improvement in the company's ability to generate earnings from its assets.
2. Return on assets (ROA) has varied significantly, ranging from a negative -38.97% in 2020 to a positive 8.24% in 2023. This indicates fluctuations in the company's ability to generate profit from its total assets, with a higher ROA generally being more favorable.
3. Return on total capital has shown a generally positive trend over the period, increasing from 10.40% in 2019 to 13.31% in 2023. This ratio indicates the company's ability to generate returns for both equity and debt holders.
4. Return on equity (ROE) has also shown significant variability, with a low of -301.78% in 2020 and a high of 29.92% in 2023. The company's ability to generate profits from shareholders' equity has improved over the period, with ROE increasing to nearly 30% in 2023.
Overall, the company's profitability ratios reflect a mix of stability and variability, with improvements in some areas such as operating ROA and ROE, but fluctuations in others such as ROA. Further analysis of the company's financial statements and business operations may provide additional insights into the factors driving these profitability trends.