American Axle & Manufacturing (AXL)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 10.27% | 12.15% | 14.02% | 12.37% | 13.82% |
| Operating profit margin | 2.41% | 4.20% | 4.67% | -8.41% | -4.62% |
| Pretax margin | -0.40% | 1.14% | 0.02% | -12.96% | -8.17% |
| Net profit margin | -0.55% | 1.11% | 0.11% | -11.92% | -7.42% |
American Axle & Manufacturing Holdings Inc's profitability ratios show a declining trend over the past five years. The gross profit margin, which measures the company's ability to generate profit from sales after deducting the cost of goods sold, decreased from 14.02% in 2021 to 10.27% in 2023.
The operating profit margin, indicating the efficiency of the company's operations in generating profit, declined from 5.68% in 2021 to 2.83% in 2023. This suggests that the company's operating expenses relative to revenue have increased, impacting profitability.
The pretax margin, reflecting the company's profitability before accounting for taxes, improved from a negative figure in 2020 to a small positive figure in 2022, but turned negative again to -0.40% in 2023. This indicates that the company's ability to generate profit before tax has been inconsistent.
The net profit margin, which shows the proportion of revenue that translates into net income, also exhibited fluctuations, with a negative net profit margin in 2023 of -0.55%. Overall, the declining profitability ratios suggest that American Axle & Manufacturing Holdings Inc may be facing challenges in managing costs and maintaining profitability in recent years.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 2.74% | 4.46% | 4.27% | -6.69% | -4.54% |
| Return on assets (ROA) | -0.63% | 1.18% | 0.10% | -9.49% | -7.29% |
| Return on total capital | 5.21% | 6.83% | 5.49% | -10.32% | -32.33% |
| Return on equity (ROE) | -5.55% | 10.25% | 1.29% | -151.50% | -49.56% |
American Axle & Manufacturing Holdings Inc's profitability ratios show fluctuating performance over the past five years.
Operating return on assets (Operating ROA) has ranged from 3.21% to 6.66%, indicating that the company generates operating income more efficiently in some years compared to others.
Return on assets (ROA) has varied widely, with negative figures in some years, reflecting inconsistent profitability relative to its total assets.
Return on total capital has also shown variability, ranging from 4.76% to 9.58%, highlighting the company's ability to generate returns on its total invested capital.
Return on equity (ROE) has been negative in some years, suggesting that the company has not been effectively generating returns for its shareholders, particularly in 2020 and 2019.
Overall, while American Axle & Manufacturing Holdings Inc has shown some periods of strong profitability, there are also instances of underperformance, implying areas where the company may need to focus on improving efficiency and profitability.