Allegheny Technologies Incorporated (ATI)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 20.59% | 10.64% | 18.62% | 11.90% | 9.82% |
| Operating profit margin | 13.96% | 6.18% | 7.49% | 5.78% | 0.96% |
| Pretax margin | 11.14% | 3.91% | 4.22% | 0.38% | -49.69% |
| Net profit margin | 8.43% | 5.44% | 3.41% | -0.58% | -52.30% |
Based on the provided data, Allegheny Technologies Incorporated has shown varying levels of profitability over the years as indicated by its profitability ratios.
1. Gross Profit Margin:
- The gross profit margin measures the percentage of revenue that exceeds the cost of goods sold.
- Allegheny Technologies saw fluctuations in its gross profit margin over the years, with a noticeable improvement from 2020 to 2022, a dip in 2023, followed by a significant increase in 2024.
- The company's gross profit margin ranged from 9.82% in 2020 to 20.59% in 2024, indicating efficiency in managing production costs.
2. Operating Profit Margin:
- The operating profit margin reflects the proportion of revenue that translates to operating profit after accounting for operating expenses.
- Allegheny Technologies experienced an upward trend in its operating profit margin from 2020 to 2024.
- The operating profit margin increased from 0.96% in 2020 to 13.96% in 2024, suggesting improved operational efficiency and cost management.
3. Pretax Margin:
- The pretax margin represents the percentage of revenue remaining after deducting all expenses except for income taxes.
- Allegheny Technologies showed a positive trend in its pretax margin over the years, with substantial growth from 2020 to 2024.
- The company's pretax margin expanded from -49.69% in 2020 to 11.14% in 2024, indicating enhanced profitability and stronger financial performance.
4. Net Profit Margin:
- The net profit margin indicates the percentage of revenue that translates to net income after all expenses including taxes.
- Allegheny Technologies displayed an improvement in its net profit margin from negative values in 2020 to positive figures in the subsequent years.
- The net profit margin increased from -52.30% in 2020 to 8.43% in 2024, highlighting the company's ability to generate profits and manage expenses effectively.
In summary, Allegheny Technologies Incorporated has shown a positive trajectory in its profitability ratios over the years, demonstrating improved efficiency in cost management, operations, and overall financial performance.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 11.64% | 9.36% | 6.46% | 3.77% | 0.71% |
| Return on assets (ROA) | 7.03% | 8.24% | 2.94% | -0.38% | -38.65% |
| Return on total capital | 32.98% | 33.97% | 42.70% | 15.62% | -279.03% |
| Return on equity (ROE) | 19.88% | 29.92% | 12.52% | -2.36% | -299.29% |
The profitability ratios of Allegheny Technologies Incorporated have been improving over the years, indicating a positive trend in the company's operational performance.
- Operating Return on Assets (Operating ROA): This ratio, which measures the company's operating income generated per dollar of assets, has shown a consistent increase from 0.71% in 2020 to 11.64% in 2024. This indicates that the company has been able to generate more operating profit from its assets over time.
- Return on Assets (ROA): Despite starting at a negative -38.65% in 2020, the ROA has steadily improved and stood at 7.03% in 2024. This shows that Allegheny Technologies has been more efficient in generating profit from its total assets each year.
- Return on Total Capital: This ratio, which shows how effectively the company is generating profit from both debt and equity capital, has also exhibited a positive trend, increasing from -279.03% in 2020 to 32.98% in 2024. This signifies the company's ability to generate higher returns for its capital providers.
- Return on Equity (ROE): The ROE has experienced a similar positive trajectory, rising from a significant negative -299.29% in 2020 to a more favorable 19.88% in 2024. This demonstrates that Allegheny Technologies has been more efficient in utilizing shareholder equity to generate profit for its investors.
Overall, the improving trend in these profitability ratios suggests that Allegheny Technologies has been enhancing its operational efficiency and effectiveness in utilizing its assets and capital to generate profits for its stakeholders.