Axalta Coating Systems Ltd (AXTA)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 12.66% | 6.55% | 7.57% | 5.15% | 7.52% |
| Operating profit margin | 11.33% | 8.66% | 10.47% | 8.17% | 10.89% |
| Pretax margin | 6.82% | 5.26% | 7.70% | 3.26% | 7.28% |
| Net profit margin | 5.16% | 3.92% | 5.98% | 3.25% | 5.56% |
Axalta Coating Systems Ltd's profitability ratios show a fluctuating trend over the past five years. The Gross profit margin decreased from 34.90% in 2019 to 31.22% in 2023, indicating a decline in the company's ability to generate profits after accounting for the cost of goods sold. The Operating profit margin increased steadily from 8.17% in 2020 to 11.33% in 2023, suggesting improved efficiency in managing operating expenses to generate profits.
The Pretax margin also exhibited an upward trend, rising from 3.27% in 2020 to 6.84% in 2023, indicating an increase in profitability before accounting for taxes. However, the Net profit margin fluctuated between 3.25% and 5.98% over the same period, reflecting changes in profitability after considering all expenses, including taxes.
Overall, Axalta Coating Systems Ltd's profitability ratios demonstrate varying levels of profitability over the past five years, with improvements in operating efficiency and pre-tax profitability, but fluctuations in net profitability. This highlights the importance of monitoring all aspects of the company's operations to ensure sustainable and consistent profitability in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.08% | 6.00% | 6.41% | 4.27% | 7.16% |
| Return on assets (ROA) | 3.68% | 2.71% | 3.66% | 1.70% | 3.65% |
| Return on total capital | 10.89% | 7.73% | 31.76% | 18.96% | 36.11% |
| Return on equity (ROE) | 15.48% | 13.18% | 17.68% | 8.49% | 18.39% |
Axalta Coating Systems Ltd's profitability ratios have shown some fluctuations over the past five years.
1. Operating return on assets (Operating ROA) has generally shown an increasing trend, starting at 7.16% in 2019 and reaching 8.08% in 2023. This indicates that the company is generating more operating income from its assets over time.
2. Return on assets (ROA) has also displayed an increasing trend, with a notable improvement from 1.70% in 2020 to 3.68% in 2023. This suggests that the company has been more efficient in generating profits from its total assets.
3. Return on total capital has shown an upward trend as well, increasing from 5.74% in 2020 to 11.23% in 2023. This indicates that the company is generating higher returns on its total invested capital.
4. Return on equity (ROE) has fluctuated over the years but has generally shown an increasing trend, with a significant improvement from 8.49% in 2020 to 15.48% in 2023. This suggests that the company is generating higher returns for its shareholders.
Overall, the profitability ratios of Axalta Coating Systems Ltd demonstrate improvements in operational efficiency, asset utilization, capital returns, and shareholder value over the analyzed period, reflecting positively on the company's financial performance.