Avantor Inc (AVTR)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 33.93% | 34.65% | 33.88% | 32.54% | 31.80% |
| Operating profit margin | 10.00% | 15.04% | 13.16% | 11.05% | 9.14% |
| Pretax margin | 5.89% | 11.33% | 10.19% | 0.97% | 0.67% |
| Net profit margin | 4.61% | 9.14% | 7.75% | 1.82% | 0.63% |
Avantor Inc's profitability ratios have shown a mixed trend over the past five years. The gross profit margin has remained relatively stable, ranging from 31.80% in 2019 to 34.65% in 2022. This indicates that the company has been able to maintain a consistent level of profitability on its products and services.
On the other hand, the operating profit margin has fluctuated more significantly, decreasing from 9.14% in 2019 to 15.04% in 2022, before declining to 10.00% in 2023. This suggests that Avantor Inc's operating expenses have had a varying impact on its profitability over the years.
The pretax margin has also shown variability, with a notable increase from 0.67% in 2019 to 11.33% in 2022, before decreasing to 5.89% in 2023. This indicates fluctuations in the company's efficiency in generating profits before accounting for taxes.
Furthermore, the net profit margin has followed a similar pattern, increasing from 0.63% in 2019 to 9.14% in 2022, before declining to 4.61% in 2023. This suggests that Avantor Inc's bottom line profitability has been influenced by changes in expenses and taxes.
In summary, Avantor Inc has experienced varying levels of profitability over the past five years, with fluctuations observed in both operating efficiency and bottom-line performance. The company should continue to monitor its profitability ratios closely and assess the underlying factors driving these changes to ensure sustained financial health.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.37% | 8.39% | 7.00% | 7.13% | 5.65% |
| Return on assets (ROA) | 2.48% | 5.10% | 4.12% | 1.18% | 0.39% |
| Return on total capital | 6.60% | 10.36% | 8.68% | 4.90% | 6.42% |
| Return on equity (ROE) | 6.11% | 14.14% | 13.64% | 4.36% | 1.54% |
Avantor Inc's profitability ratios show mixed results over the past five years. The Operating return on assets (Operating ROA) has trended downwards from 8.39% in 2022 to 5.37% in 2023, indicating a decline in the company's ability to generate operating income from its assets. However, the Return on assets (ROA) has also decreased over the same period, from 5.10% in 2022 to 2.48% in 2023, suggesting a lower overall profitability relative to total assets.
On the other hand, Return on total capital has shown a fluctuating trend, reaching a high of 10.36% in 2022 and dropping to 6.60% in 2023. This ratio reflects the company's efficiency in generating returns from both equity and debt capital, highlighting some volatility in Avantor Inc's capital utilization.
Return on equity (ROE), which measures the company's profitability relative to shareholders' equity, has also varied considerably, with a notable increase in 2022 to 14.14% before declining to 6.11% in 2023. This could indicate shifting financial leverage or changes in the company's profitability relative to its equity base.
In summary, Avantor Inc's profitability ratios demonstrate a mix of performance levels over the past five years, suggesting fluctuating profitability and capital efficiency. Further analysis of the company's financial statements and business operations would be necessary to understand the drivers behind these changes and assess the overall financial health of the company.