DXP Enterprises Inc (DXPE)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 31.10% | 29.07% | 30.05% | 28.22% | 28.04% |
| Operating profit margin | 8.54% | 6.73% | 3.65% | -2.82% | 5.40% |
| Pretax margin | 5.35% | 4.54% | 1.82% | -4.88% | 3.87% |
| Net profit margin | 4.24% | 3.32% | 1.51% | -2.98% | 2.97% |
DXP Enterprises Inc has shown steady improvement in its profitability ratios over the past five years. The gross profit margin has generally been increasing, indicating the company's ability to generate more profits from its sales after accounting for the cost of goods sold. This trend suggests effective cost management and potentially improved pricing strategies.
The operating profit margin and net profit margin have also shown an upward trajectory, reflecting the company's ability to control operating expenses and generate higher profits relative to total revenues. This improvement indicates operational efficiency and could signify better profitability prospects for the company.
Furthermore, the pretax margin has shown consistent growth, indicating that the company is effectively managing not only its operating expenses but also its interest and tax expenses. This trend is a positive sign of the company's overall financial health and potential for sustained profitability in the future.
Overall, DXP Enterprises Inc's profitability ratios demonstrate positive trends and indicate the company's efforts to enhance operational efficiency and generate higher profits from its business activities.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 11.78% | 9.42% | 4.46% | -3.19% | 8.55% |
| Return on assets (ROA) | 5.84% | 4.64% | 1.84% | -3.37% | 4.70% |
| Return on total capital | 15.54% | 12.28% | 6.20% | -4.04% | 11.49% |
| Return on equity (ROE) | 18.07% | 13.18% | 4.76% | -8.12% | 10.47% |
DXP Enterprises Inc has shown a consistent improvement in profitability ratios over the past five years, reflecting stronger operational efficiency and financial performance. The operating return on assets (Operating ROA) has steadily increased from 4.46% in 2021 to 11.78% in 2023, indicating the company's ability to generate profit from its operating activities relative to its total assets.
Similarly, the overall return on assets (ROA) has shown a positive trend, rising from -3.37% in 2020 to 5.84% in 2023, signaling an improvement in the company's ability to generate earnings from its total assets.
Return on total capital has also exhibited a robust growth trajectory, reaching 15.54% in 2023 from a negative value in 2020, showcasing the efficient use of both debt and equity capital to generate returns for shareholders.
Furthermore, the return on equity (ROE) has seen a notable increase, climbing from -8.12% in 2020 to 18.07% in 2023, indicating a significant improvement in how effectively the company is utilizing shareholder equity to generate profits.
Overall, the upward trend in profitability ratios suggests that DXP Enterprises Inc has made strides in enhancing its operational efficiency, asset utilization, and overall financial performance, which bodes well for its investors and stakeholders.