CNH Industrial N.V. (CNH)
Profitability ratios
Return on sales
| Dec 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 32.80% | 32.43% | 32.26% | 32.10% | 31.95% | 31.55% | 31.22% | 30.35% | 29.62% | 26.80% | 25.97% | 25.74% | 25.59% | 71.28% | 66.26% | 61.18% | 57.40% | 17.52% | 17.74% | 21.43% |
| Operating profit margin | 19.51% | 19.85% | 20.05% | 20.21% | 20.19% | 19.74% | 19.73% | 19.13% | 18.52% | 15.48% | 14.86% | 15.18% | 15.95% | 17.70% | 15.27% | 6.22% | 2.98% | 2.71% | 1.96% | 8.93% |
| Pretax margin | 7.34% | 8.24% | 9.07% | 10.26% | 10.95% | 11.47% | 11.80% | 11.67% | 11.38% | 8.38% | 7.43% | 8.10% | 8.51% | 9.24% | 3.02% | 0.82% | -1.56% | -2.50% | 1.90% | 2.64% |
| Net profit margin | 6.62% | 8.07% | 8.74% | 9.47% | 9.60% | 9.45% | 9.44% | 8.97% | 8.61% | 6.77% | 6.13% | 6.97% | 7.46% | 6.99% | 1.31% | -0.08% | -1.88% | -2.15% | 4.13% | 4.06% |
The profitability ratios of CNH Industrial N.V. show the company's ability to generate profits relative to its revenue.
1. Gross Profit Margin: CNH's gross profit margin has fluctuated over the years but generally shows an increasing trend from around 21.43% in March 2020 to 32.80% by December 2024. This indicates that the company has been able to improve its efficiency in generating profits from its sales.
2. Operating Profit Margin: The operating profit margin of CNH has shown variability but has generally improved from 1.96% in June 2020 to 19.51% in December 2024. This demonstrates the company's ability to control its operating expenses and increase profitability over time.
3. Pretax Margin: CNH's pretax margin also displays an upward trend, indicating the company's ability to generate profits before taxes. The pretax margin improved from -2.50% in September 2020 to 7.34% by December 2024, showing a strengthening financial position.
4. Net Profit Margin: The net profit margin of CNH has shown improvement over the years, indicating the company's ability to generate profits after accounting for all expenses. The net profit margin rose from -2.15% in September 2020 to 6.62% by December 2024, reflecting better overall profitability.
Overall, the profitability ratios of CNH Industrial N.V. exhibit positive trends, showing the company's ability to enhance profitability and efficiently manage its operations to generate sustainable earnings.
Return on investment
| Dec 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.02% | 9.81% | 10.53% | 10.68% | 10.75% | 11.39% | 11.44% | 11.45% | 11.09% | 11.10% | 10.24% | 9.83% | 7.45% | 8.41% | 7.57% | 3.30% | 1.60% | 1.52% | 1.09% | 5.51% |
| Return on assets (ROA) | 3.06% | 3.99% | 4.59% | 5.01% | 5.12% | 5.45% | 5.47% | 5.37% | 5.15% | 4.85% | 4.22% | 4.52% | 3.49% | 3.32% | 0.65% | -0.04% | -1.01% | -1.20% | 2.30% | 2.50% |
| Return on total capital | 40.02% | 44.17% | 47.72% | 49.16% | 49.45% | 50.64% | 52.45% | 50.35% | 48.13% | 42.59% | 40.39% | 43.09% | 37.27% | 8.85% | 4.36% | 2.85% | 0.81% | 0.37% | 4.10% | 5.18% |
| Return on equity (ROE) | 17.16% | 22.98% | 26.76% | 29.02% | 29.22% | 29.39% | 31.15% | 29.74% | 29.29% | 27.37% | 26.02% | 29.42% | 25.42% | 25.19% | 5.27% | -0.36% | -9.80% | -11.22% | 17.37% | 19.44% |
The profitability ratios of CNH Industrial N.V. provide insights into the company's ability to generate profits from its operations and utilize its assets efficiently.
1. Operating Return on Assets (Operating ROA):
- The Operating ROA increased steadily from 5.51% in March 2020 to 11.09% in December 2022, indicating improved operational efficiency and profitability.
- The ratio remained relatively stable around the 11% range from March 2023 to December 2024, showing consistent performance in utilizing assets to generate operating profits.
2. Return on Assets (ROA):
- The ROA improved from negative figures in the second half of 2020 to 3.06% in December 2024, signifying the company's ability to generate profits relative to its total assets.
- The ratio showed a gradual positive trend, reaching its peak in December 2024, reflecting better asset utilization and profitability over time.
3. Return on Total Capital:
- The Return on Total Capital increased significantly from 5.18% in March 2020 to 40.02% in December 2024, demonstrating efficient capital allocation and improved profitability.
- There were fluctuations in the ratio, but an overall upward trend indicates the company's effective use of total capital to generate returns for its stakeholders.
4. Return on Equity (ROE):
- The ROE exhibited a similar pattern to the Return on Total Capital, rising from negative figures to 17.16% in December 2024, indicating enhanced profitability in relation to shareholders' equity.
- The ratio shows a consistent improvement over the years, reflecting the company's ability to generate returns for its equity holders and enhance shareholder value.
Overall, the profitability ratios of CNH Industrial N.V. demonstrate a positive trajectory, with improvements in operational efficiency, asset utilization, and profitability over the analyzed periods.