Avient Corp (AVNT)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 29.50% | 23.12% | 19.90% | 20.84% | 23.44% |
| Operating profit margin | 6.50% | 6.37% | 5.90% | 3.52% | 5.59% |
| Pretax margin | 2.87% | 17.91% | 5.96% | 3.79% | 22.20% |
| Net profit margin | 2.50% | 18.42% | 4.87% | 4.15% | 21.00% |
Avient Corp's profitability ratios have shown fluctuations over the past five years. The gross profit margin has been increasing steadily, indicating an improvement in the company's ability to manage production costs and generate revenue.
The operating profit margin has experienced some volatility, with a notable decrease in 2023 compared to the previous year. This suggests that Avient Corp may have faced challenges in controlling operating expenses or maintaining sales growth.
The pretax margin has also shown variability, reaching its peak in 2021. A significant drop in 2022 followed by a slight recovery in 2023 indicates fluctuations in pre-tax profitability, which may be influenced by factors such as changes in tax regulations or extraordinary expenses.
The net profit margin has been the most volatile, with significant fluctuations year over year. The sharp increase in 2022 suggests an exceptional profit performance, which was not sustained in the following years. The decline in 2023 indicates a lower level of profitability after the peak observed in 2022.
Overall, while the gross profit margin has been improving, Avient Corp should focus on managing operating expenses more effectively to ensure stable profitability levels in the long term.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.30% | 4.00% | 5.60% | 2.29% | 4.79% |
| Return on assets (ROA) | 1.27% | 11.55% | 4.62% | 2.70% | 17.98% |
| Return on total capital | 4.48% | 5.39% | 7.72% | 3.14% | 6.93% |
| Return on equity (ROE) | 3.26% | 30.12% | 13.01% | 7.75% | 55.96% |
Avient Corp's profitability ratios over the past five years show varying levels of performance.
1. Operating return on assets (Operating ROA) has been consistent around 3-4%, with a slight decline in 2023 compared to the previous years. This ratio indicates the company's ability to generate operating income from its assets.
2. Return on assets (ROA) has fluctuated significantly, with a sharp increase in 2022 followed by a substantial decrease in 2023. The high ROA in 2019 and 2022 indicates strong profitability relative to the company's total assets.
3. Return on total capital has also varied over the years, ranging from 4.47% to 10.49%. This ratio evaluates the company's overall ability to generate returns for both debt and equity investors.
4. Return on equity (ROE) has shown significant fluctuations, with a peak in 2019 followed by a decline in 2020 and subsequent increases in 2021 and 2022. ROE reflects the profitability generated for the company's equity shareholders.
In summary, Avient Corp has demonstrated mixed profitability performance over the past five years, with fluctuations in key ratios. Further analysis of the company's financial statements and operational performance may provide insights into the factors driving these fluctuations.