Avient Corp (AVNT)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 32.61% | 28.72% | 25.99% | 22.82% | 24.19% |
| Operating profit margin | 10.16% | 7.05% | 5.40% | 7.91% | 5.84% |
| Pretax margin | 6.94% | 2.78% | 1.88% | 6.32% | 4.29% |
| Net profit margin | 5.23% | 2.41% | 2.45% | 4.79% | 4.06% |
Avient Corp's profitability ratios have shown some fluctuations over the years. The gross profit margin has improved consistently from 22.82% in December 31, 2021, to 32.61% in December 31, 2024, indicating the company's ability to efficiently manage its production costs and generate higher profits from sales.
The operating profit margin has also shown a positive trend, increasing from 7.91% in December 31, 2021, to 10.16% in December 31, 2024. This suggests that Avient Corp has been successful in controlling its operating expenses while improving operational efficiency to boost its profitability.
However, the pretax margin witnessed some fluctuations, reaching its lowest point of 1.88% in December 31, 2022, before recovering to 6.94% in December 31, 2024. This could indicate that the company faced challenges related to non-operating expenses or tax burdens during the period.
The net profit margin, on the other hand, showed relatively stable performance, with a slight increase from 4.79% in December 31, 2021, to 5.23% in December 31, 2024. This indicates that Avient Corp has managed to maintain a healthy level of profitability after accounting for all expenses and taxes.
Overall, Avient Corp's profitability ratios reflect a positive trend in gross and operating profit margins, with some variability in pretax margin while maintaining a steady net profit margin. This suggests that the company has made efforts to enhance operational efficiency and overall profitability over the years, despite facing some challenges along the way.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.67% | 3.71% | 3.02% | 7.62% | 3.89% |
| Return on assets (ROA) | 2.92% | 1.27% | 1.37% | 4.61% | 2.70% |
| Return on total capital | 14.18% | 8.74% | 10.54% | 17.39% | 13.11% |
| Return on equity (ROE) | 7.28% | 3.26% | 3.56% | 13.01% | 7.82% |
Avient Corp's profitability ratios show mixed performance over the five-year period from 2020 to 2024.
1. Operating return on assets (Operating ROA) improved from 3.89% in 2020 to 7.62% in 2021, indicating better efficiency in generating operating income from its assets. However, there was a decline in 2022 to 3.02%, followed by a slight recovery to 3.71% in 2023 and a further increase to 5.67% in 2024.
2. Return on assets (ROA) also exhibited a similar trend with an increase from 2.70% in 2020 to 4.61% in 2021, indicating better overall profitability from the total assets. However, there was a significant decline in 2022 to 1.37%, followed by a slight decrease to 1.27% in 2023 and a moderate recovery to 2.92% in 2024.
3. Return on total capital saw an improvement from 13.11% in 2020 to 17.39% in 2021, signifying better returns generated from all sources of capital. However, there was a decline in 2022 to 10.54%, followed by further decreases to 8.74% in 2023. There was a recovery in 2024 to 14.18%.
4. Return on equity (ROE) showed a similar pattern with an increase from 7.82% in 2020 to 13.01% in 2021, highlighting improved returns to shareholders' equity. However, there was a significant decline in 2022 to 3.56%, followed by a slight decrease to 3.26% in 2023 and a moderate recovery to 7.28% in 2024.
Overall, while Avient Corp demonstrated fluctuations in its profitability ratios, there were periods of both improvement and decline. It is essential for the company to focus on sustaining and enhancing its profitability ratios to ensure long-term financial health and attractiveness to investors.