Axalta Coating Systems Ltd (AXTA)
Profitability ratios
Return on sales
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 14.49% | 10.23% | 9.33% | 8.92% | 8.38% | 7.90% | 7.78% | 8.33% | 9.81% | 17.86% | 19.02% | 16.59% | 14.73% | 14.39% | 12.74% | 16.31% | 16.30% | 16.07% | 11.76% | 10.11% |
| Operating profit margin | 11.33% | 10.46% | 9.82% | 9.25% | 8.66% | 8.53% | 8.83% | 10.96% | 10.47% | 12.19% | 12.77% | 7.67% | 8.17% | 6.67% | 6.05% | 10.46% | 10.89% | 11.15% | 9.42% | 9.06% |
| Pretax margin | 6.82% | 6.04% | 5.77% | 5.61% | 5.26% | 5.48% | 5.85% | 8.25% | 7.70% | 8.50% | 8.77% | 2.97% | 3.26% | 2.60% | 2.14% | 6.82% | 7.28% | 7.46% | 5.59% | 5.11% |
| Net profit margin | 5.16% | 4.64% | 4.50% | 4.22% | 3.92% | 4.20% | 4.49% | 6.41% | 5.98% | 6.44% | 6.85% | 2.22% | 3.25% | 2.49% | 1.99% | 5.93% | 5.56% | 6.21% | 4.45% | 3.89% |
Based on the data provided, we can observe the following trends in Axalta Coating Systems Ltd's profitability ratios:
1. Gross Profit Margin: The gross profit margin has shown a slight improvement over the quarters, ranging from 29.05% in Q4 2022 to 31.22% in Q4 2023. This indicates that the company has been able to effectively manage its cost of goods sold and maintain a steady level of profitability from its core business operations.
2. Operating Profit Margin: The operating profit margin has also displayed an upward trend, starting at 8.66% in Q4 2022 and reaching 11.33% in Q4 2023. This suggests that Axalta has been successful in controlling its operating expenses and generating higher profits from its operational activities.
3. Pre-tax Margin: The pre-tax margin has fluctuated over the quarters, with a peak of 8.24% in Q1 2022 and a low of 5.27% in Q4 2022. Despite the variability, the pre-tax margin has generally decreased slightly over time, indicating that the company may have experienced challenges in managing its non-operating expenses effectively.
4. Net Profit Margin: The net profit margin has followed a similar pattern to the pre-tax margin, showing fluctuations but a general decline from 6.41% in Q1 2022 to 5.16% in Q4 2023. This decrease suggests that Axalta's bottom-line profitability has been affected by factors such as taxes and interest expenses.
Overall, Axalta Coating Systems Ltd has demonstrated an ability to maintain healthy profitability levels, as evidenced by the upward trends in gross and operating profit margins. However, the fluctuations in pre-tax and net profit margins indicate the need for the company to focus on optimizing its non-operating expenses to improve overall profitability in the future.
Return on investment
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.08% | 7.66% | 7.05% | 6.60% | 6.00% | 5.98% | 5.90% | 7.01% | 6.41% | 7.34% | 7.60% | 4.17% | 4.27% | 3.57% | 3.48% | 7.12% | 7.16% | 7.58% | 6.46% | 6.30% |
| Return on assets (ROA) | 3.68% | 3.40% | 3.23% | 3.01% | 2.71% | 2.95% | 2.99% | 4.10% | 3.66% | 3.88% | 4.08% | 1.20% | 1.70% | 1.33% | 1.15% | 4.03% | 3.65% | 4.23% | 3.05% | 2.71% |
| Return on total capital | 10.89% | 31.54% | 28.46% | 27.73% | 7.73% | 31.15% | 30.52% | 36.85% | 31.76% | 35.29% | 34.97% | 19.13% | 18.96% | 18.69% | 19.37% | 35.18% | 36.11% | 39.12% | 33.52% | 33.05% |
| Return on equity (ROE) | 15.48% | 14.83% | 13.83% | 13.41% | 13.18% | 15.80% | 15.68% | 21.10% | 17.68% | 19.46% | 19.74% | 6.22% | 8.49% | 6.99% | 6.31% | 19.97% | 18.39% | 21.99% | 16.30% | 14.97% |
The profitability ratios of Axalta Coating Systems Ltd show a generally positive trend over the past eight quarters.
Starting with the Operating Return on Assets (Operating ROA), the company's performance has improved steadily, with a range of 5.90% to 8.08%. This indicates that the company has been efficient in generating operating income from its assets.
Return on Assets (ROA) also demonstrates a consistent uptrend, ranging from 2.71% to 3.68%, reflecting the company's ability to generate profits from its total assets.
Return on Total Capital has shown fluctuations over the quarters but generally indicates that the company is successfully generating profits from the capital invested in its operations, ranging from 8.16% to 11.23%.
Return on Equity (ROE) has also experienced fluctuations but has remained relatively healthy, ranging from 13.18% to 21.10%. This suggests that the company is effectively utilizing shareholder equity to generate returns.
Overall, the profitability ratios of Axalta Coating Systems Ltd demonstrate a positive performance, with improvements in operating efficiency and profitability over the past quarters.