Cognex Corporation (CGNX)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 72.85% | 71.89% | 73.43% | 74.37% | 73.90% |
| Operating profit margin | 15.84% | 24.52% | 30.45% | 20.98% | 19.67% |
| Pretax margin | 16.40% | 24.96% | 30.82% | 22.99% | 22.48% |
| Net profit margin | 13.72% | 21.46% | 27.05% | 21.67% | 28.11% |
Cognex Corp.'s profitability ratios demonstrate a fluctuating trend over the past five years. The gross profit margin has remained relatively stable, ranging from 71.75% to 74.55%, indicating the company's ability to efficiently generate revenue after accounting for the cost of goods sold.
However, the operating profit margin has shown more variability, with a significant decrease in 2023 compared to the prior years. This suggests that the company's operating expenses may have increased relative to its revenues in 2023.
Similarly, the pretax margin has also fluctuated over the years, with a notable decline in 2023 compared to the previous years. This indicates that Cognex Corp.'s profitability before accounting for taxes has been affected by factors such as changes in operating expenses or other income and expenses.
The net profit margin, which represents the company's bottom line profitability after all expenses including taxes have been accounted for, has also shown a downward trend in 2023 compared to the earlier years. This suggests that Cognex Corp.'s overall profitability has been impacted by various factors, potentially affecting its ability to generate net income efficiently.
In conclusion, while Cognex Corp. has maintained a strong gross profit margin, its operating profit margin, pretax margin, and net profit margin have shown some fluctuations over the past five years, warranting further investigation into the underlying factors influencing the company's profitability.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.48% | 12.57% | 15.73% | 9.47% | 7.56% |
| Return on assets (ROA) | 5.61% | 11.01% | 13.97% | 9.78% | 10.81% |
| Return on total capital | 8.69% | 17.12% | 22.03% | 13.51% | 10.52% |
| Return on equity (ROE) | 7.53% | 14.98% | 19.57% | 13.96% | 15.04% |
Cognex Corp.'s profitability ratios have shown fluctuations over the past five years. The operating return on assets (Operating ROA) has exhibited a declining trend, decreasing from 15.73% in 2021 to 6.08% in 2023. This indicator suggests that the company's operating efficiency in generating profits from its assets has weakened.
Similarly, the return on assets (ROA) has also decreased over the years, indicating that the overall profitability of the company in relation to its total assets has declined. The ROA was 5.61% in 2023 compared to 13.97% in 2021.
In contrast, the return on total capital and return on equity (ROE) have shown more variability. The return on total capital has fluctuated, reaching its peak in 2021 at 22.03% and then decreasing to 8.15% in 2023. The return on equity has also demonstrated fluctuations, with the highest value of 19.57% in 2021 and decreasing to 7.53% in 2023.
Overall, Cognex Corp.'s profitability ratios suggest a mixed performance in recent years, with a declining trend in operating efficiency and overall profitability in relation to its assets and capital. Further analysis is necessary to determine the factors driving these fluctuations and evaluate the company's ability to generate sustainable profits in the future.