Dover Corporation (DOV)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 37.13% | 36.51% | 38.07% | 37.62% | 36.73% |
| Operating profit margin | 16.45% | 16.44% | 16.43% | 14.19% | 13.66% |
| Pretax margin | 15.29% | 15.34% | 17.96% | 12.80% | 11.81% |
| Net profit margin | 12.72% | 12.70% | 14.41% | 10.39% | 9.50% |
Dover Corp.'s profitability ratios have shown a relatively stable trend in recent years. The gross profit margin has remained fairly consistent, ranging from 36.01% to 37.56%, indicating efficient cost management in generating revenues.
The operating profit margin has also shown stability, hovering around 16%, which reflects the company's ability to control operating expenses effectively while generating operating profits.
The pretax margin, representing the proportion of earnings before taxes to total revenue, experienced some fluctuations but generally improved from 2019 to 2021 before slightly decreasing in 2022 and 2023. This indicates the company's ability to generate higher earnings relative to total revenue.
The net profit margin, which measures profitability after all expenses, including taxes, has shown a consistent upward trend over the years, increasing from 9.50% in 2019 to 12.52% in 2023. This signifies improved bottom-line profitability and cost management practices by Dover Corp.
Overall, Dover Corp. has demonstrated a stable and improving profitability position over the years, with effective cost management and consistent improvement in generating profits relative to revenue.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 12.04% | 12.66% | 12.32% | 10.19% | 11.25% |
| Return on assets (ROA) | 9.31% | 9.78% | 10.80% | 7.47% | 7.82% |
| Return on total capital | 17.30% | 19.42% | 20.91% | 14.68% | 16.10% |
| Return on equity (ROE) | 20.70% | 24.86% | 26.82% | 20.19% | 22.35% |
Dover Corp. has demonstrated a consistent trend of profitability over the past five years based on various key ratios.
The Operating Return on Assets (Operating ROA) has shown some fluctuation, ranging from 10.19% in 2020 to 12.66% in 2022. The current ratio of 12.04% indicates that the company generates $0.1204 in operating income for every dollar of assets it owns. This is generally a positive indicator of operational efficiency.
The Return on Assets (ROA) has also shown a stable performance, with values ranging from 7.47% in 2020 to 10.80% in 2021. The ROA of 9.31% in 2023 signifies that the company generates approximately $0.0931 in net income for every dollar of assets it holds. This indicates the firm's ability to generate profits from its total asset base.
The Return on Total Capital has displayed an upward trajectory over the years, reaching 15.95% in 2023. This metric reflects the company's ability to generate earnings from both debt and equity capital invested in the business.
The Return on Equity (ROE) ratio has also shown a positive trend, with values ranging from 20.19% in 2020 to 26.82% in 2021. The current ROE of 20.70% indicates that the company is effectively utilizing shareholders' equity to generate profits.
Overall, based on the profitability ratios analyzed, Dover Corp. has shown a consistent and positive performance in terms of utilizing its assets, capital, and equity to generate returns for its stakeholders.