Dril-Quip Inc (DRQ)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 27.25% | 26.56% | 24.95% | 26.10% | 28.88% |
| Operating profit margin | 1.25% | 0.13% | -38.66% | -17.41% | 0.68% |
| Pretax margin | 3.18% | 1.87% | -38.72% | -17.00% | 2.51% |
| Net profit margin | 0.14% | -0.45% | -39.63% | -8.43% | 0.41% |
Dril-Quip, Inc.'s profitability ratios have shown fluctuations over the past five years.
- Gross profit margin has ranged from 24.95% to 28.88%, with the highest margin in 2019. This indicates the company's ability to generate profits after accounting for the cost of goods sold.
- Operating profit margin has varied from -15.34% to 1.37%, with negative margins in 2021 and 2020. This suggests that the company's profitability from its core operations has been inconsistent.
- Pretax margin has shown significant volatility, ranging from -38.72% to 3.18%. The negative margins in 2021 and 2020 are concerning, indicating challenges in earning profits before accounting for taxes.
- Net profit margin has also varied greatly, from -39.63% to 0.41%. The negative margins in 2021 and 2020 are particularly noteworthy, highlighting the company's struggles in generating profits after all expenses.
Overall, Dril-Quip, Inc. has faced profitability challenges in recent years, with fluctuations in margins indicating potential operational and financial difficulties. Further analysis of the underlying factors driving these fluctuations would be necessary to understand the company's profitability trends more comprehensively.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 0.51% | 0.05% | -12.36% | -5.52% | 0.23% |
| Return on assets (ROA) | 0.06% | -0.17% | -12.67% | -2.67% | 0.14% |
| Return on total capital | 0.60% | 0.80% | -13.85% | -5.90% | 0.98% |
| Return on equity (ROE) | 0.07% | -0.19% | -14.27% | -2.95% | 0.16% |
Dril-Quip, Inc.'s profitability ratios show fluctuating trends over the last five years.
1. Operating return on assets (Operating ROA) improved from negative figures in 2022 and 2021 to 0.14% in 2023, indicating that the company generated a positive operating income relative to its assets.
2. Return on assets (ROA) increased slightly from 2022 to 2023, but remained relatively low at 0.06% in 2023. This suggests that the company's ability to generate profits from its total assets improved marginally.
3. Return on total capital displayed a similar pattern, with a positive shift from negative returns in 2022 and 2021 to 0.16% in 2023. This indicates that Dril-Quip was able to generate a positive return on its total invested capital.
4. Return on equity (ROE) also saw a slight improvement in 2023 compared to 2022, but remained modest at 0.07%. This suggests that the company's ability to generate profit for its shareholders improved slightly.
Overall, Dril-Quip, Inc.'s profitability ratios reflect a mixed performance, with some improvement in profitability metrics in 2023 compared to the previous years. However, the ratios remain relatively low, indicating room for further enhancement in operational efficiency and financial performance.