Crane Company (CR)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 40.72% | 38.58% | 39.70% | 39.03% | 34.07% |
| Operating profit margin | 16.69% | 13.60% | 16.51% | 15.80% | 8.95% |
| Pretax margin | 15.88% | 12.80% | 17.04% | 15.01% | 7.64% |
| Net profit margin | 13.83% | 12.27% | 11.88% | 13.69% | 6.16% |
Crane Company has shown a consistent improvement in its profitability ratios over the past five years based on the provided data.
Firstly, the Gross Profit Margin has steadily increased from 34.07% in 2020 to 40.72% in 2024, indicating that the company has been able to effectively control its cost of goods sold and increase the mark-up on its products or services.
Secondly, the Operating Profit Margin has also seen a positive trend, rising from 8.95% in 2020 to 16.69% in 2024. This indicates that Crane Company has been able to efficiently manage its operating expenses and generate higher profits from its core business operations.
Moreover, the Pretax Margin has shown an overall increasing trend from 7.64% in 2020 to 15.88% in 2024. This suggests that the company has been successful in improving its profitability before accounting for taxes, reflecting better operational performance and cost management.
Finally, the Net Profit Margin has also experienced growth, increasing from 6.16% in 2020 to 13.83% in 2024. This demonstrates that Crane Company has been able to enhance its bottom line profitability after accounting for all expenses, including taxes.
Overall, the consistent improvement in profitability margins over the five-year period showcases Crane Company's ability to effectively manage costs, enhance operational efficiency, and increase overall profitability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 13.47% | 12.16% | 12.67% | 11.20% | 5.73% |
| Return on assets (ROA) | 11.15% | 10.97% | 9.12% | 9.70% | 3.94% |
| Return on total capital | 22.32% | 21.34% | 14.76% | 28.56% | 16.79% |
| Return on equity (ROE) | 17.98% | 18.85% | 21.03% | 23.73% | 11.82% |
Crane Company's profitability ratios show a positive trend over the last five years. The Operating return on assets (Operating ROA) increased from 5.73% in December 2020 to 13.47% in December 2024, indicating the company's ability to generate operating income relative to its total assets has been improving steadily.
Similarly, the Return on assets (ROA) also exhibited a strong growth trajectory, rising from 3.94% in December 2020 to 11.15% in December 2024. This metric reflects the company's overall efficiency in utilizing its assets to generate profits.
The Return on total capital, which measures the return on all capital invested in the company, fluctuated over the period but generally showed positive performance, ranging from 14.76% in December 2022 to 28.56% in December 2021. This indicates the company's ability to generate returns for both debt and equity investors.
Finally, the Return on equity (ROE) decreased from 23.73% in December 2021 to 17.98% in December 2024, which might signify a decrease in profitability relative to shareholders' equity. However, the ROE remained at reasonable levels overall, indicating that the company was still generating satisfactory returns for its shareholders.
In conclusion, Crane Company demonstrated consistent profitability improvements over the last five years, as evidenced by the positive trends in its profitability ratios.