BWX Technologies Inc (BWXT)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 23.44% | 23.23% | 24.83% | 26.04% | 26.74% |
| Operating profit margin | 15.63% | 15.92% | 16.52% | 17.13% | 17.52% |
| Pretax margin | 13.10% | 14.34% | 18.88% | 17.28% | 16.86% |
| Net profit margin | 10.03% | 10.88% | 14.61% | 13.31% | 13.14% |
Based on the profitability ratios of BWX Technologies Inc over the past five years, there has been a general downward trend in profitability. The gross profit margin has shown a slight fluctuation but remained relatively stable around 25%, indicating the company's ability to control direct costs of goods sold.
However, the operating profit margin, pretax margin, and net profit margin have shown a decreasing trend, indicating a decline in overall profitability. The operating profit margin, which measures operating efficiency, has decreased from 15.80% in 2019 to 13.35% in 2023. Similarly, the pretax margin and net profit margin have also shown a decline over the period, indicating a decrease in earnings relative to revenue.
The decreasing trend in profitability ratios may raise concerns about the company's ability to generate sustainable profits in the long term. It is important for stakeholders to closely monitor the company's cost structures and revenue generation strategies to ensure profitability can be improved 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) | 13.94% | 13.31% | 13.83% | 15.63% | 17.05% |
| Return on assets (ROA) | 8.95% | 9.09% | 12.23% | 12.15% | 12.79% |
| Return on total capital | 17.22% | 17.25% | 23.60% | 26.52% | 28.72% |
| Return on equity (ROE) | 26.34% | 31.83% | 48.00% | 45.11% | 60.41% |
BWX Technologies Inc's profitability ratios exhibit fluctuations over the past five years.
1. Operating return on assets (Operating ROA) has ranged from 11.76% to 15.69%, with a slight increase to 12.13% in 2023. This ratio measures the company's operating income generated per dollar of assets and indicates its efficiency in utilizing assets for operations.
2. Return on assets (ROA) has varied between 8.95% and 12.79%. It decreased to 8.95% in 2023, reflecting the company's lower net income generated per dollar of total assets in the most recent year.
3. Return on total capital has declined from 26.73% in 2019 to 17.92% in 2023. This ratio shows the overall return earned on all capital invested in the company, including both equity and debt.
4. Return on equity (ROE) displays significant fluctuations, ranging from 26.34% to 60.41%. Although the ratio decreased to 26.34% in 2023, it indicates the company's ability to generate profits from shareholders' equity.
Overall, BWX Technologies Inc's profitability ratios reflect a mix of operational efficiency, ability to generate returns on assets and capital, and performance in creating value for shareholders. Analyzing these ratios helps in assessing the company's financial health and performance over time.