American Axle & Manufacturing (AXL)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 12.10% | 10.27% | 12.15% | 14.02% | 12.37% |
| Operating profit margin | 3.94% | 2.41% | 4.20% | 4.67% | 3.99% |
| Pretax margin | 1.03% | -0.40% | 1.14% | 0.02% | -12.96% |
| Net profit margin | 0.57% | -0.55% | 1.11% | 0.11% | -11.91% |
American Axle & Manufacturing's profitability ratios exhibit varying trends over the years. The gross profit margin experienced a slight increase from 12.37% in December 2020 to 14.02% in December 2021 before declining to 10.27% in December 2023. It then recovered slightly to 12.10% by December 2024.
Similarly, the operating profit margin showed improvement from 3.99% in December 2020 to 4.67% in December 2021, but saw a decline to 2.41% by December 2023, before increasing to 3.94% in December 2024.
The pretax margin was negative in December 2020 at -12.96%, before turning positive and reaching 1.14% in December 2022. However, it dipped back to -0.40% in December 2023, then improved to 1.03% by December 2024.
The net profit margin also displayed a similar pattern, starting with a negative margin of -11.91% in December 2020, turning positive at 0.11% in December 2021, and reaching 1.11% in December 2022. It then decreased to -0.55% in December 2023, before recovering slightly to 0.57% in December 2024.
Overall, American Axle & Manufacturing's profitability ratios indicate fluctuations in margins over the years, reflective of the company's changing financial performance and operational efficiency.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.77% | 2.74% | 4.46% | 4.27% | 3.18% |
| Return on assets (ROA) | 0.69% | -0.63% | 1.18% | 0.10% | -9.48% |
| Return on total capital | 44.21% | 29.29% | 38.39% | 64.42% | -111.26% |
| Return on equity (ROE) | 6.22% | -5.55% | 10.25% | 1.29% | -151.44% |
American Axle & Manufacturing's profitability ratios have shown fluctuations over the years.
1. Operating return on assets (Operating ROA) has been on an upward trend from 3.18% in 2020 to 4.77% in 2024, indicating that the company has been able to generate more operating income from its assets.
2. Return on assets (ROA) has improved from -9.48% in 2020 to 0.69% in 2024, showcasing a positive turnaround in the company's ability to generate profits from its total assets.
3. Return on total capital has shown significant improvements, moving from negative figures in 2020 to 44.21% in 2024, indicating that the company has been more efficient in generating returns for both debt and equity holders.
4. Return on equity (ROE) has also displayed a mixed performance, starting at a negative value in 2020, reaching a peak of 10.25% in 2022, and then slightly dropping to 6.22% in 2024, showcasing the company's varying ability to generate returns for its equity investors.
Overall, while there have been fluctuations in the profitability ratios of American Axle & Manufacturing, the general trend has been positive, with improvements seen across most ratios over the years.