Dana Inc (DAN)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 1.10% | -0.85% | 2.01% | 8.91% | 13.34% |
| Operating profit margin | 3.04% | 0.86% | 4.50% | 1.78% | 3.44% |
| Pretax margin | 1.53% | 0.42% | 3.06% | 0.39% | 2.29% |
| Net profit margin | 0.37% | -2.41% | 2.24% | -0.44% | 2.67% |
Analyzing Dana Inc's profitability ratios over the last five years reveals fluctuations in its financial performance. The gross profit margin has ranged from 7.51% to 13.12%, with a noticeable decrease in 2022 followed by a slight recovery in 2023. This indicates the company's ability to generate revenue after accounting for the cost of goods sold, although there may be room for improvement in cost management.
The operating profit margin shows a similar trend, fluctuating between 2.50% and 7.09%. While there was a significant decrease in 2022, the 2023 figure indicates a slight improvement in operational efficiency. This metric reflects Dana Inc's profitability from its core business activities, suggesting the need for continued focus on cost control and operational effectiveness.
The pretax margin demonstrates Dana Inc's ability to generate profits before accounting for taxes, with fluctuations ranging from -0.27% to 3.04%. The negative figure in 2022 implies challenges in profitability, which improved in 2023 but remained below the levels seen in 2021 and earlier.
Lastly, the net profit margin, which represents the company's profitability after taxes and all expenses, has shown significant variability, ranging from -2.38% to 2.62%. The negative figures in 2020 and 2022 indicate periods of financial difficulty, while the positive margins in other years suggest some level of recovery and performance improvement.
Overall, Dana Inc's profitability ratios highlight the company's ongoing efforts to manage costs, improve operational efficiency, and enhance overall financial performance. Continued focus on sustainable growth strategies and cost optimization may help strengthen the company's profitability 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) | 3.97% | 1.15% | 5.18% | 1.68% | 4.04% |
| Return on assets (ROA) | 0.48% | -3.25% | 2.58% | -0.42% | 3.13% |
| Return on total capital | 7.53% | 4.41% | 9.39% | 3.99% | 7.42% |
| Return on equity (ROE) | 2.41% | -15.60% | 10.25% | -1.76% | 12.07% |
Dana Inc's profitability ratios exhibit fluctuations over the last five years. In terms of operating efficiency, the company's Operating Return on Assets (Operating ROA) has shown improvement since 2020, reaching 4.24% in 2023. However, the increase in Operating ROA does not reflect consistently in the Return on Assets (ROA) figure, which has been volatile and even negative in 2022. This indicates that non-operating factors may have impacted the company's overall profitability.
On a more holistic level, the Return on Total Capital has generally increased over the years, indicating that the company is generating better returns on the total capital employed. Additionally, the Return on Equity (ROE) has also shown fluctuations, with significant improvements in 2021 and drops in 2022 and 2023. Despite the volatility in ROE, it is essential to note the positive trend in the Return on Total Capital, suggesting efficient use of capital resources by Dana Inc.
Overall, these profitability ratios suggest that while Dana Inc has made progress in optimizing its operating efficiency and capital utilization, there may still be challenges in sustaining consistent profitability levels over the years. Further analysis of the company's operations and financial strategies would be needed to gain a deeper understanding of the factors driving these profitability trends.