Bio-Rad Laboratories Inc (BIO)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 26.93% | 28.17% | 27.99% | 28.42% | 27.32% |
| Operating profit margin | 6.38% | 8.68% | 8.55% | 8.33% | 4.99% |
| Pretax margin | -16.04% | -84.56% | 93.12% | 97.22% | 49.14% |
| Net profit margin | -12.03% | -65.21% | 72.70% | 75.40% | 38.22% |
Looking at the profitability ratios of Bio-Rad Laboratories Inc. over the past five years, several observations can be made:
1. Gross Profit Margin:
- The gross profit margin has shown a declining trend from 2019 to 2023, decreasing from 54.38% to 53.42%. This indicates a slight erosion in the company's ability to control production costs and generate profits from its core operations.
2. Operating Profit Margin:
- The operating profit margin fluctuated over the period, reaching its peak in 2022 at 17.22%. However, there was a notable decline in 2023 to 12.65%. This suggests that while the company was able to increase profitability through operational efficiencies in some years, it faced challenges in maintaining profitability in the most recent year.
3. Pretax Margin:
- The pretax margin displays significant volatility, with extreme fluctuations observed from year to year. The negative pretax margin in 2023 is particularly concerning, indicating that the company is incurring significant expenses that are impacting its profitability before accounting for taxes.
4. Net Profit Margin:
- The net profit margin also shows inconsistency, with negative margins in 2023 and 2022. The sharp increase in 2021 and 2020 suggests that the company was able to generate substantial profits relative to its revenue during those years, but struggled to maintain profitability in the most recent years.
Overall, the declining trend in gross profit margin, coupled with inconsistencies and volatility in operating, pretax, and net profit margins, suggests that Bio-Rad Laboratories Inc. may be facing challenges in effectively managing costs, operational efficiency, and overall profitability. Further analysis of the company's financial performance, operational strategies, and market conditions would be required to gain a deeper understanding of these trends.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 2.75% | 3.57% | 2.81% | 3.25% | 2.87% |
| Return on assets (ROA) | -5.18% | -26.87% | 23.90% | 29.40% | 21.96% |
| Return on total capital | -8.05% | -43.15% | 39.80% | 49.89% | 39.59% |
| Return on equity (ROE) | -7.29% | -37.73% | 31.09% | 38.57% | 30.55% |
Bio-Rad Laboratories Inc. profitability ratios paint a mixed picture over the past five years.
1. Operating return on assets (Operating ROA) has fluctuated between 2.75% to 3.57% during the period under consideration. This metric indicates how efficiently the company is generating profits from its assets solely related to operations.
2. Return on assets (ROA) saw significant negative returns in 2022 and 2023, showing values of -5.18% and -26.87% respectively. However, in 2021, it had a high return of 23.89% followed by 29.34% in 2020, which was relatively positive. ROA signifies the overall effectiveness of the company in generating profits from its assets.
3. Return on total capital has ranged from 3.40% to 4.46% over the five-year period. This metric measures the efficiency of using all capital employed in the business to generate profits.
4. Return on equity (ROE) has been negative in recent years, hitting -7.29% in 2023 and -37.73% in 2022. However, there were high ROE values in 2021 and 2020 at 31.07% and 38.53% respectively. ROE reflects the company's ability to generate profit from shareholders' equity.
In summary, while Bio-Rad Laboratories Inc. has shown fluctuations in profitability ratios over the years, the company has faced challenges in recent years with negative returns in terms of ROA and ROE. It is essential for the company to focus on improving operational efficiency and managing its capital effectively to enhance its overall profitability in the future.