CNH Industrial N.V. (CNH)
Profitability ratios
Return on sales
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 32.27% | 32.16% | 32.04% | 31.79% | 31.11% | 30.42% | 29.39% | 28.68% | 55.96% | 56.54% | 57.33% | 57.79% | 71.28% | 66.26% | 61.18% | 57.40% | 17.52% | 17.74% | 21.43% | 22.25% |
| Operating profit margin | 18.19% | 18.59% | 19.08% | 19.12% | 18.85% | 18.49% | 17.70% | 17.15% | 10.10% | 9.84% | 10.18% | 10.78% | 17.70% | 15.27% | 6.22% | 2.98% | 2.71% | 1.96% | 8.93% | 9.98% |
| Pretax margin | 9.47% | 10.47% | 11.54% | 12.01% | 12.26% | 12.36% | 12.10% | 11.77% | 6.42% | 5.64% | 5.98% | 6.18% | 9.24% | 3.02% | 0.82% | -1.56% | -2.50% | 1.90% | 2.64% | 4.10% |
| Net profit margin | 8.07% | 8.61% | 9.35% | 9.48% | 9.33% | 9.44% | 8.98% | 8.62% | 4.83% | 4.32% | 4.85% | 5.15% | 6.99% | 1.31% | -0.08% | -1.88% | -2.15% | 4.13% | 4.06% | 5.06% |
CNH Industrial N.V.'s profitability ratios exhibit fluctuating trends over the reported periods. The gross profit margin indicates the company's ability to generate profits after accounting for the cost of goods sold, with a recent decline from above 30% to around 32%. This could suggest some pressure on pricing or higher production costs.
The operating profit margin reflects the efficiency of the company's core operations in generating profits, showing some volatility but generally ranging between 17% to 19%. This metric suggests that CNH has been able to maintain stable profitability levels despite some fluctuations in operating expenses.
The pretax margin, which measures the profitability of the company before accounting for taxes, displays a varying trend, ranging from negative figures to around 12%. The recent trend suggests an improvement in the company's ability to generate profits before tax, possibly due to better cost management or revenue growth.
Lastly, the net profit margin, representing the company's profitability after all expenses have been deducted, also shows fluctuating patterns, ranging from negative figures to around 9%. This metric indicates the company's ability to turn revenue into profit, with recent figures showing a moderate level of profitability after accounting for all expenses.
Overall, the analysis of CNH Industrial N.V.'s profitability ratios indicates a mix of stability and fluctuation in profitability levels over the reported periods, with potential areas of improvement in managing costs and enhancing revenue generation to sustain and enhance profitability in the future.
Return on investment
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.99% | 9.76% | 10.08% | 10.20% | 10.88% | 10.72% | 10.58% | 10.26% | 10.15% | 9.63% | 9.48% | 53.10% | 8.41% | 7.57% | 3.30% | 1.60% | 1.52% | 1.09% | 5.51% | 5.92% |
| Return on assets (ROA) | 3.99% | 4.52% | 4.94% | 5.06% | 5.38% | 5.47% | 5.37% | 5.15% | 4.85% | 4.22% | 4.52% | 25.38% | 3.32% | 0.65% | -0.04% | -1.01% | -1.20% | 2.30% | 2.50% | 3.00% |
| Return on total capital | 10.42% | 11.55% | 11.89% | 12.12% | 12.79% | 12.57% | 12.26% | 11.71% | 10.74% | 9.47% | 9.51% | 9.35% | 8.85% | 4.36% | 2.85% | 0.81% | 0.37% | 4.10% | 5.18% | 6.29% |
| Return on equity (ROE) | 22.60% | 25.93% | 28.21% | 28.43% | 28.55% | 30.62% | 29.23% | 29.09% | 27.13% | 25.77% | 29.14% | 25.14% | 25.19% | 5.27% | -0.36% | -9.80% | -11.22% | 17.37% | 19.44% | 23.10% |
CNH Industrial N.V. has shown a mix of profitability ratios over the past few quarters. The Operating Return on Assets (Operating ROA) has trended downwards from 10.88% in September 2023 to 8.99% in September 2024, indicating a lower operating efficiency in generating profits from its assets.
Return on Assets (ROA) also decreased during the same period, from 5.38% in September 2023 to 3.99% in September 2024, suggesting a decline in the overall profitability of the company.
Return on Total Capital has shown a similar declining trend, dropping from 12.79% in September 2023 to 10.42% in September 2024, indicating a decrease in the efficiency of generating profits from the total capital employed.
Return on Equity (ROE) has fluctuated but generally remained at relatively higher levels compared to other profitability ratios, with the most recent value at 22.60% in September 2024. This suggests that the company has been effective in generating returns for its shareholders despite the challenges reflected in other ratios.
Overall, CNH Industrial N.V. needs to closely monitor and improve its efficiency in generating profits from both assets and capital to ensure sustainable profitability in the future.