American Axle & Manufacturing (AXL)
Profitability ratios
Return on sales
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 11.29% | 10.70% | 9.97% | 9.82% | 9.81% | 10.59% | 11.40% | 11.58% | 12.15% | 12.01% | 12.51% | 13.21% | 14.02% | 15.29% | 16.25% | 12.82% | 12.37% | 11.26% | 10.64% | 14.23% |
| Operating profit margin | 3.92% | 3.79% | 3.48% | 3.01% | 2.69% | 3.09% | 3.74% | 3.82% | 4.20% | 3.95% | 3.88% | 4.17% | 4.67% | 5.81% | 7.50% | 3.02% | -8.41% | -19.36% | -23.50% | -13.67% |
| Pretax margin | 1.03% | 0.91% | 0.63% | 0.27% | -0.40% | 0.11% | 0.78% | 0.98% | 1.14% | -0.01% | -0.70% | -0.82% | 0.02% | 1.86% | 3.79% | -1.36% | -12.96% | -23.95% | -27.90% | -17.38% |
| Net profit margin | 0.57% | 0.48% | 0.04% | -0.13% | -0.64% | -0.09% | 0.64% | 0.91% | 1.11% | 0.07% | -0.47% | -0.61% | 0.11% | 1.65% | 3.74% | -0.45% | -11.92% | -22.36% | -26.04% | -16.69% |
American Axle & Manufacturing's profitability ratios show mixed performance over the period analyzed.
- Gross profit margin fluctuated between 9.81% and 16.25%, with a general decreasing trend in recent quarters, indicating potential challenges in maintaining profitability from sales after deducting the cost of goods sold.
- Operating profit margin started in negative territory but gradually improved, reaching around 3.92% by December 31, 2024. This suggests the company has been able to better manage its operating expenses and generate profits from its core business activities.
- Pretax margin also showed improvement, moving from negative figures to approximately 1.03% by the end of December 31, 2024. This indicates better management of taxes and other expenses relative to the company's revenue.
- Net profit margin, similarly to the other profitability ratios, improved from negative figures to approximately 0.57% by December 31, 2024. This shows the company's ability to generate profits after accounting for all expenses, although there is still room for improvement.
In conclusion, while American Axle & Manufacturing has shown some improvement in profitability margins over the period, there are still areas where further enhancement may be necessary to ensure sustained profitability.
Return on investment
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.75% | 4.42% | 4.08% | 3.48% | 3.05% | 3.39% | 4.07% | 4.11% | 4.46% | 3.92% | 3.58% | 3.76% | 4.27% | 5.52% | 7.13% | 2.44% | -6.69% | -15.32% | -19.27% | -13.60% |
| Return on assets (ROA) | 0.69% | 0.56% | 0.04% | -0.15% | -0.72% | -0.10% | 0.69% | 0.97% | 1.18% | 0.07% | -0.43% | -0.55% | 0.10% | 1.56% | 3.56% | -0.36% | -9.49% | -17.70% | -21.36% | -16.61% |
| Return on total capital | 44.67% | 40.92% | 38.78% | 33.84% | 28.34% | 31.69% | 36.80% | 38.41% | 43.30% | 42.47% | 35.53% | 33.91% | 47.60% | 81.61% | 109.74% | 53.13% | -97.81% | -265.53% | -598.01% | -217.75% |
| Return on equity (ROE) | 6.22% | 4.80% | 0.36% | -1.29% | -6.40% | -0.93% | 5.92% | 8.54% | 10.25% | 0.84% | -5.29% | -6.54% | 1.29% | 20.38% | 47.09% | -5.33% | -151.50% | -308.51% | -659.07% | -263.57% |
American Axle & Manufacturing's profitability ratios have shown a gradual improvement over the past few years. The Operating Return on Assets (ROA) has moved from negative percentages in 2020 to positive figures by 2023, indicating better operational efficiency in generating profits relative to the company's asset base. ROA also saw a steady increase, with the company moving from negative values in 2020 to positive levels by 2023, demonstrating improved profitability relative to the total assets employed.
Return on Total Capital exhibited a significant turnaround, with the company moving from extreme negative levels in 2020 to positive territory by 2021 and maintaining a healthy trend through 2024. This indicates that the company's profitability in generating returns from both equity and debt capital has substantially improved over the years.
Return on Equity (ROE) also showed a similar positive trajectory, starting from deeply negative values in 2020 and eventually moving into positive figures by 2021. The ROE continued to increase, suggesting that the company's ability to generate profits from shareholders' equity has strengthened over the years.
Overall, the profitability ratios of American Axle & Manufacturing reflect a positive trend, showcasing improved efficiency in generating profits relative to assets, total capital, and equity, signaling enhanced financial performance and shareholder value.