Avantor Inc (AVTR)
Net profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 711,500 | 321,100 | 686,500 | 572,600 | 116,600 |
| Revenue | US$ in thousands | 6,783,600 | 6,967,200 | 7,512,400 | 7,386,100 | 6,393,600 |
| Net profit margin | 10.49% | 4.61% | 9.14% | 7.75% | 1.82% |
December 31, 2024 calculation
Net profit margin = Net income ÷ Revenue
= $711,500K ÷ $6,783,600K
= 10.49%
Net profit margin is a key indicator of a company's profitability, representing the percentage of revenue that translates into net profit after all expenses have been deducted.
Analyzing Avantor Inc's net profit margin over the past five years, we observe a fluctuating trend. In December 2020, the net profit margin stood at a modest 1.82%, indicating that for every dollar of revenue generated, the company retained $0.0182 as profit.
A significant improvement was witnessed in December 2021, with the net profit margin increasing to 7.75%, reflecting enhanced efficiency in cost management and revenue generation. This positive trend continued into December 2022, where the net profit margin expanded further to 9.14%, signifying improved profitability and operational performance.
However, there was a slight decline in profitability by December 2023, with the net profit margin decreasing to 4.61%. This dip may indicate challenges faced by the company in controlling costs or sustaining revenue growth.
The most recent data from December 2024 reveals a notable rebound, as Avantor Inc achieved a robust net profit margin of 10.49%. This sharp increase suggests that the company implemented effective strategies to boost profitability, possibly through revenue growth, cost-cutting measures, or operational efficiencies.
Overall, Avantor Inc's net profit margin has demonstrated fluctuations over the years, but the recent results indicate a positive trajectory in terms of profitability and financial performance. It is essential for the company to sustain and build upon these achievements to ensure long-term success and value creation for its stakeholders.
Peer comparison
Dec 31, 2024