Axalta Coating Systems Ltd (AXTA)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 11.32% | 12.66% | 6.55% | 7.57% | 5.15% |
| Operating profit margin | 13.38% | 11.34% | 8.66% | 10.47% | 8.17% |
| Pretax margin | 9.40% | 6.82% | 5.26% | 7.70% | 3.26% |
| Net profit margin | 7.41% | 5.15% | 3.92% | 5.98% | 3.25% |
Axalta Coating Systems Ltd's profitability ratios have shown a mixed trend over the past five years.
1. Gross Profit Margin:
- The gross profit margin increased from 5.15% in December 31, 2020, to 12.66% in December 31, 2023, before slightly decreasing to 11.32% in December 31, 2024.
- This indicates that the company improved its efficiency in generating profit from its core business activities but experienced a slight decline in 2024.
2. Operating Profit Margin:
- The operating profit margin also demonstrated an upward trend, rising from 8.17% in December 31, 2020, to 13.38% in December 31, 2024.
- This suggests that Axalta Coating Systems Ltd effectively managed its operating expenses and improved profitability over the years.
3. Pretax Margin:
- The pretax margin fluctuated over the period, with a significant increase from 3.26% in December 31, 2020, to 9.40% in December 31, 2024.
- This indicates fluctuations in the company's ability to generate profit before taxes, with a notable improvement in 2024.
4. Net Profit Margin:
- The net profit margin also showed variability, starting at 3.25% in December 31, 2020, and increasing to 7.41% in December 31, 2024.
- This suggests that Axalta Coating Systems Ltd was able to improve its efficiency in generating profit after accounting for all expenses and taxes.
In conclusion, over the analyzed period, Axalta Coating Systems Ltd demonstrated improvements in its profitability, as seen in the increasing trend in operating profit margin, pretax margin, and net profit margin. However, the slight fluctuations in gross profit margin highlight the need for consistent monitoring and management of costs and revenues to sustain and enhance profitability in the future.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.74% | 8.09% | 6.00% | 6.41% | 4.27% |
| Return on assets (ROA) | 5.39% | 3.67% | 2.71% | 3.66% | 1.70% |
| Return on total capital | 13.29% | 10.89% | 7.73% | 31.76% | 18.96% |
| Return on equity (ROE) | 20.45% | 15.46% | 13.18% | 17.68% | 8.49% |
Based on the provided data, we can analyze Axalta Coating Systems Ltd's profitability ratios as follows:
1. Operating return on assets (Operating ROA):
- The Operating ROA has shown a consistent increase from 4.27% in 2020 to 9.74% in 2024. This indicates that the company has been able to generate higher operating income from its assets over the years.
2. Return on assets (ROA):
- The ROA has also demonstrated a positive trend, rising from 1.70% in 2020 to 5.39% in 2024. This indicates that Axalta Coating Systems Ltd has become more efficient in generating profits from its total assets.
3. Return on total capital:
- The return on total capital peaked in 2021 at 31.76% but fluctuated in subsequent years, indicating some variability in the company's ability to generate returns on its total capital employed.
4. Return on equity (ROE):
- The ROE has shown a generally increasing trend from 8.49% in 2020 to 20.45% in 2024. This suggests that the company has been successful in delivering higher returns to its shareholders over the years.
Overall, Axalta Coating Systems Ltd has demonstrated improvements in profitability ratios such as ROA, ROE, and Operating ROA, indicating efficient management of assets and capital to generate higher returns for investors.