Avantor Inc (AVTR)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 33.60% | 33.93% | 34.65% | 33.88% | 32.54% |
| Operating profit margin | 15.99% | 10.00% | 15.04% | 13.16% | 11.05% |
| Pretax margin | 12.59% | 5.89% | 11.33% | 10.19% | 0.97% |
| Net profit margin | 10.49% | 4.61% | 9.14% | 7.75% | 1.82% |
Based on the provided data, we can analyze Avantor Inc's profitability ratios over the years.
1. Gross Profit Margin:
- Avantor Inc's gross profit margin has shown a steady increase from 32.54% in December 2020 to 33.60% in December 2024. This indicates the company's ability to effectively manage its production costs and generate profits from its core operations.
2. Operating Profit Margin:
- The operating profit margin fluctuated over the years, with a significant increase from 11.05% in December 2020 to 15.99% in December 2024. This improvement suggests that Avantor Inc has been able to control its operating expenses and increase profitability from its primary business activities.
3. Pretax Margin:
- Avantor Inc's pretax margin experienced variations, reaching its peak at 12.59% in December 2024. This metric reflects the company's ability to efficiently manage its income before taxes, implying effective financial management strategies.
4. Net Profit Margin:
- The net profit margin also showed fluctuations, with notable growth from 1.82% in December 2020 to 10.49% in December 2024. This indicates that Avantor Inc has been successful in increasing its bottom line profitability after accounting for all expenses and taxes.
Overall, Avantor Inc has demonstrated consistent improvements in its profitability ratios over the years, highlighting its operational efficiency and financial performance. However, it is important for the company to sustain this positive trend to ensure long-term profitability and shareholder value.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.95% | 5.37% | 8.39% | 7.00% | 7.13% |
| Return on assets (ROA) | 5.87% | 2.48% | 5.10% | 4.12% | 1.18% |
| Return on total capital | 11.80% | 6.60% | 10.36% | 8.68% | 4.90% |
| Return on equity (ROE) | 11.94% | 6.11% | 14.14% | 13.64% | 4.36% |
Avantor Inc's profitability ratios indicate its ability to generate earnings relative to its assets, capital, and equity. The Operating Return on Assets (Operating ROA) remained relatively stable over the period, with a slight increase from 7.13% in 2020 to 8.95% in 2024. This ratio reflects the company's operational efficiency in utilizing its assets to generate operating income.
The Return on Assets (ROA) saw fluctuations over the years, starting at 1.18% in 2020, peaking at 5.87% in 2024. ROA indicates how effectively the company is utilizing its assets to generate profit before interest and taxes. The increasing trend in ROA suggests improving asset efficiency and profitability.
The Return on Total Capital, which includes debt and equity, showed a similar increasing trend from 4.90% in 2020 to 11.80% in 2024. This ratio highlights the return earned on all capital invested in the company, indicating Avantor's ability to generate profit from both debt and equity sources.
Return on Equity (ROE) also exhibited variability during the period, starting at 4.36% in 2020 and reaching 11.94% in 2024. ROE measures the return generated on shareholders' equity and signifies the company's efficiency in generating profits from shareholders' investments.
Overall, the increasing trends in these profitability ratios suggest that Avantor Inc has been improving its profitability and efficiency in utilizing its assets, capital, and equity to generate returns for its stakeholders.