Dover Corporation (DOV)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 38.20% | 36.56% | 36.01% | 37.56% | 37.02% |
| Operating profit margin | 15.57% | 16.19% | 16.21% | 16.21% | 13.96% |
| Pretax margin | 22.68% | 15.05% | 15.13% | 17.72% | 12.59% |
| Net profit margin | 34.82% | 12.52% | 12.52% | 14.21% | 10.23% |
Based on the provided data, Dover Corporation's profitability ratios show fluctuations over the years.
1. Gross Profit Margin: Dover Corporation has maintained a relatively stable gross profit margin with a slight increase from 37.02% in 2020 to 38.20% in 2024, indicating the company's ability to efficiently control its production costs.
2. Operating Profit Margin: The operating profit margin has increased from 13.96% in 2020 to 15.57% in 2024, with a peak of 16.21% in 2021 and 2022. This suggests that the company has been effectively managing its operational expenses to improve profitability.
3. Pretax Margin: Dover Corporation experienced significant fluctuations in its pretax margin over the years, ranging from 12.59% in 2020 to 22.68% in 2024. The notable increase in 2024 indicates a substantial growth in profitability before accounting for taxes.
4. Net Profit Margin: The net profit margin has shown an upward trend, increasing from 10.23% in 2020 to 34.82% in 2024. This significant improvement indicates that Dover Corporation has been effective in controlling its overall expenses and generating higher profits relative to its revenue.
In conclusion, Dover Corporation's profitability ratios demonstrate overall positive performance, with improvements in operational efficiency and profitability over the years, particularly in net profit margin, showing the company's ability to generate more bottom-line profits for its stakeholders.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.64% | 12.04% | 12.66% | 12.32% | 10.19% |
| Return on assets (ROA) | 21.56% | 9.31% | 9.78% | 10.80% | 7.47% |
| Return on total capital | 0.00% | 26.76% | 32.75% | 35.97% | 28.17% |
| Return on equity (ROE) | 38.79% | 20.70% | 24.86% | 26.82% | 20.19% |
Dover Corporation's profitability ratios show a mixed performance over the past five years.
- Operating Return on Assets (Operating ROA) increased steadily from 10.19% in 2020 to 12.66% in 2022, before slightly decreasing to 9.64% in 2024. This indicates the company's ability to generate earnings from its operating assets improved initially but declined in the most recent year.
- Return on Assets (ROA) had a significant increase from 7.47% in 2020 to a high of 21.56% in 2024. This shows that the company's overall profitability in relation to its total assets saw a strong improvement, especially in the last year.
- Return on Total Capital started strong at 28.17% in 2020, peaked at 35.97% in 2021, but then experienced a significant decline to 0.00% in 2024. This suggests that the company's ability to generate returns on its total invested capital fluctuated significantly over the years.
- Return on Equity (ROE) trended upward from 20.19% in 2020 to 38.79% in 2024. This indicates that shareholders' returns on their equity investments in the company increased steadily and significantly over the period.
In conclusion, while some profitability ratios like ROA and ROE showed positive trends, others like Return on Total Capital experienced volatility and a substantial decline. Monitoring these ratios will be important to assess Dover Corporation's overall financial health and performance in the future.