Dana Inc (DAN)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 8.52% | 8.53% | 7.51% | 9.36% | 8.74% |
| Operating profit margin | 3.42% | 3.23% | 2.83% | 4.52% | 3.07% |
| Pretax margin | 0.78% | 1.69% | -0.31% | 2.73% | -0.18% |
| Net profit margin | -0.55% | 0.36% | -3.10% | 2.20% | -1.00% |
Dana Inc's profitability ratios exhibit fluctuations over the five-year period from 2020 to 2024.
1. Gross Profit Margin: The company's gross profit margin has shown some variability but has generally improved from 8.74% in 2020 to 8.52% in 2024. This indicates that Dana Inc has been able to control its cost of goods sold relative to its sales revenue.
2. Operating Profit Margin: Dana Inc's operating profit margin has also experienced fluctuations. It increased from 3.07% in 2020 to 4.52% in 2021, but then dropped to 3.42% by 2024. This suggests that the company's operating expenses have had an impact on its profitability.
3. Pretax Margin: The pretax margin of Dana Inc has been inconsistent, ranging from a negative value of -0.18% in 2020 to a positive value of 2.73% in 2021. However, it decreased to 0.78% by 2024, indicating fluctuations in the company's ability to generate profit before taxes.
4. Net Profit Margin: The net profit margin of Dana Inc has also been irregular, moving from a negative value of -1.00% in 2020 to positive values in subsequent years. However, it ended at -0.55% in 2024, suggesting challenges in turning sales revenue into net profit.
In conclusion, Dana Inc's profitability ratios have shown mixed performance over the years, reflecting potential challenges in managing costs, operating expenses, and generating consistent profits. Further analysis and evaluation of the company's operations and strategies would be necessary to understand the reasons behind these fluctuations.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.70% | 4.28% | 3.85% | 5.29% | 2.96% |
| Return on assets (ROA) | -0.76% | 0.48% | -4.23% | 2.58% | -0.96% |
| Return on total capital | 18.08% | 21.08% | 6.25% | 18.37% | 10.07% |
| Return on equity (ROE) | -4.28% | 2.41% | -20.31% | 10.25% | -4.04% |
Dana Inc's profitability ratios show mixed performance over the past five years.
1. Operating Return on Assets (Operating ROA) has increased from 2.96% in 2020 to 4.70% in 2024, indicating an improvement in the company's operational efficiency in generating profits from its assets.
2. Return on Assets (ROA) showed fluctuations, with negative returns in 2020 and 2022, but positive returns in other years. The company needs to focus on enhancing its asset utilization to generate consistent returns.
3. Return on Total Capital increased significantly from 10.07% in 2020 to 21.08% in 2023, indicating effective capital allocation and improved profitability relative to overall capital employed.
4. Return on Equity (ROE) exhibited inconsistency, with negative returns in 2020, 2022, and 2024, and positive returns in 2021 and 2023. This suggests a variation in shareholder value creation over the years.
In conclusion, while Dana Inc has shown improvements in certain profitability ratios, there are areas that require attention to ensure stable and sustainable profitability in the future.