Barnes Group Inc (B)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | -2.67% | -0.17% | 7.07% | 4.14% | 10.01% |
| Operating profit margin | 6.41% | 4.58% | 12.07% | 11.15% | 16.15% |
| Pretax margin | 2.40% | 3.06% | 10.28% | 9.17% | 14.13% |
| Net profit margin | 1.15% | 1.08% | 8.03% | 5.72% | 10.82% |
Profitability ratios provide insights into a company's ability to generate earnings relative to its revenue and expenses.
1. Gross Profit Margin: Barnes Group Inc.'s gross profit margin has shown a declining trend over the past five years, decreasing from 36.68% in 2019 to 30.47% in 2023. This indicates that the cost of goods sold as a percentage of revenue has increased, potentially impacting the company's overall profitability.
2. Operating Profit Margin: The operating profit margin also exhibits a declining pattern, falling from 15.86% in 2019 to 6.13% in 2023. This suggests that Barnes Group Inc. is facing challenges in controlling its operating expenses relative to its sales, which could affect its operational efficiency.
3. Pretax Margin: The pretax margin has fluctuated over the years, with a significant drop from 13.87% in 2019 to 2.29% in 2023. This metric reflects the company's ability to manage its pre-tax profitability, including the impact of interest expenses and non-operating activities.
4. Net Profit Margin: The net profit margin has also varied, reaching a low of 1.07% in 2022 and slightly improving to 1.10% in 2023. This ratio indicates the company's ability to generate profits after accounting for all expenses, including taxes. The decreasing trend in net profit margin suggests that Barnes Group Inc. may be experiencing challenges in controlling its overall costs and expenses.
Overall, the decreasing trend in profitability margins for Barnes Group Inc. over the past five years raises concerns about the company's operational efficiency, cost management, and overall profitability. Investors and stakeholders may need to closely monitor the company's financial performance and strategies to address these challenges and improve 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) | 2.69% | 2.37% | 5.82% | 4.61% | 8.63% |
| Return on assets (ROA) | 0.48% | 0.56% | 3.88% | 2.37% | 5.78% |
| Return on total capital | 6.71% | 2.76% | 7.10% | 5.64% | 10.85% |
| Return on equity (ROE) | 1.17% | 1.00% | 6.99% | 4.58% | 12.46% |
Barnes Group Inc.'s profitability ratios indicate a fluctuating trend in recent years. The Operating Return on Assets (Operating ROA) has shown a decrease from 5.82% in 2021 to 2.69% in 2023. This suggests a decline in the company's operating efficiency in generating profits from its assets.
Similarly, the Return on Assets (ROA) has decreased from 3.88% in 2021 to 0.48% in 2023, indicating a decline in the company's overall profitability in relation to its total assets.
The Return on Total Capital has also seen a decreasing trend from 7.38% in 2021 to 3.35% in 2023, signaling a decrease in the company's ability to generate returns from both equity and debt capital.
The Return on Equity (ROE) has fluctuated over the years, showing a slight increase from 6.99% in 2021 to 7.46% in 2023. This indicates that the company's profitability in relation to shareholder equity has improved slightly in recent years.
Overall, the profitability ratios of Barnes Group Inc. reflect a mixed performance with some declining metrics like Operating ROA, ROA, and Return on Total Capital, while ROE has shown a slight improvement. Further analysis of the company's operational efficiency and capital structure may be required to understand the factors influencing these profitability trends.