Benchmark Electronics Inc (BHE)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 10.17% | 9.55% | 8.84% | 9.13% | 8.53% |
| Operating profit margin | 4.12% | 3.86% | 3.12% | 2.35% | 1.22% |
| Pretax margin | 3.16% | 2.86% | 2.92% | 2.01% | 0.84% |
| Net profit margin | 2.38% | 2.27% | 2.36% | 1.59% | 0.68% |
Benchmark Electronics Inc has shown a consistent improvement in its profitability ratios over the past five years. The gross profit margin has increased from 8.53% in 2020 to 10.17% in 2024, indicating that the company has been able to improve its efficiency in generating revenue after accounting for the cost of goods sold.
Similarly, the operating profit margin has increased steadily from 1.22% in 2020 to 4.12% in 2024, suggesting that Benchmark Electronics has been able to control its operating expenses more effectively and improve its operational efficiency.
The pretax margin has also shown a positive trend, increasing from 0.84% in 2020 to 3.16% in 2024. This indicates that the company has been able to manage its pre-tax income more efficiently over the years.
Furthermore, the net profit margin has increased from 0.68% in 2020 to 2.38% in 2024, showcasing an improvement in Benchmark Electronics' overall profitability after accounting for all expenses, including taxes.
Overall, Benchmark Electronics Inc's profitability ratios reflect a positive trend over the past five years, demonstrating improved efficiency in revenue generation and cost management.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.11% | 4.82% | 4.04% | 2.79% | 1.44% |
| Return on assets (ROA) | 2.96% | 2.83% | 3.06% | 1.88% | 0.81% |
| Return on total capital | 9.95% | 10.48% | 9.47% | 5.53% | 2.59% |
| Return on equity (ROE) | 5.69% | 5.96% | 6.65% | 3.67% | 1.42% |
Benchmark Electronics Inc's profitability ratios have shown a positive trend over the past five years.
1. Operating return on assets (Operating ROA) has improved steadily from 1.44% in 2020 to 5.11% in 2024. This indicates that the company's ability to generate operating profit from its assets has been increasing.
2. Return on assets (ROA) has also shown a positive trend, although slightly fluctuating, with a noticeable increase from 0.81% in 2020 to 2.96% in 2024. This ratio measures the company's overall efficiency in generating profits from its total assets.
3. Return on total capital has exhibited a substantial improvement, rising from 2.59% in 2020 to 9.95% in 2024. This indicates the company's effectiveness in generating profits from its total invested capital, including both debt and equity.
4. Return on equity (ROE) has displayed a similar upward trend, increasing from 1.42% in 2020 to 5.69% in 2024. ROE reflects the company's ability to generate profits from the shareholders' equity.
Overall, the improving profitability ratios suggest that Benchmark Electronics Inc has been better utilizing its assets and capital to generate returns for its investors, indicating increasing efficiency and effectiveness in its operations over the years.