Everus Construction Group Inc (ECG)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|
| Gross profit margin | 11.91% | 11.29% | 10.23% | 12.08% |
| Operating profit margin | 6.66% | 6.31% | 6.10% | 7.10% |
| Pretax margin | 6.34% | 5.48% | 5.92% | 7.02% |
| Net profit margin | 5.03% | 4.16% | 4.62% | 5.33% |
Everus Construction Group Inc's profitability ratios have shown some fluctuations over the years.
- The Gross Profit Margin decreased from 12.08% in December 31, 2021, to 10.23% in December 31, 2022, but then slightly recovered to 11.29% in December 31, 2023, and further increased to 11.91% in December 31, 2024. This indicates that the company's ability to generate profits from its revenue improved in the later years.
- The Operating Profit Margin followed a similar trend, declining from 7.10% in December 31, 2021, to 6.10% in December 31, 2022, before experiencing a modest increase to 6.31% in December 31, 2023, and 6.66% in December 31, 2024. This suggests that the company managed its operating expenses more effectively over time.
- The Pretax Margin showcased a drop from 7.02% in December 31, 2021, to 5.92% in December 31, 2022, and then to 5.48% in December 31, 2023, before rebounding to 6.34% in December 31, 2024. This indicates fluctuations in the company's profitability before an improvement in the latest year.
- Lastly, the Net Profit Margin declined from 5.33% in December 31, 2021, to 4.62% in December 31, 2022, and further to 4.16% in December 31, 2023, before recovering to 5.03% by December 31, 2024. This reflects the company's ability to control costs and improve overall profitability towards the end of the period.
In conclusion, while Everus Construction Group Inc experienced some variability in its profitability margins over the years, there were signs of improvement in the later periods. It's essential for the company to continue monitoring and managing its profitability ratios to ensure sustainable growth and performance.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 14.74% | 16.22% | 14.50% | — |
| Return on assets (ROA) | 11.13% | 10.70% | 10.99% | — |
| Return on total capital | 0.00% | 41.07% | 43.43% | — |
| Return on equity (ROE) | 33.94% | 26.46% | 32.64% | — |
Everus Construction Group Inc's profitability ratios reflect a generally positive trend over the years analyzed.
1. Operating return on assets (Operating ROA) has shown a consistent increase from 14.50% in December 31, 2022, to 16.22% in December 31, 2023, before slightly decreasing to 14.74% in December 31, 2024. This indicates the company's efficiency in generating operating profit relative to its total assets during the period.
2. Return on assets (ROA) remained relatively stable, starting at 10.99% in December 31, 2022, dipping slightly to 10.70% in December 31, 2023, and then increasing to 11.13% in December 31, 2024. This ratio measures the company's ability to generate profit from its total assets without considering the impact of interest and taxes.
3. Return on total capital was high at 43.43% in December 31, 2022, then decreased to 41.07% in December 31, 2023. Significantly, it dropped to 0.00% in December 31, 2024, indicating the company may not have been effectively utilizing its total capital to generate returns during this period.
4. Return on equity (ROE) showed a positive trend, starting at 32.64% in December 31, 2022, dropping to 26.46% in December 31, 2023, and then increasing to 33.94% in December 31, 2024. This ratio demonstrates the company's ability to generate profit from shareholders' equity.
Overall, while the company's operating profitability ratios have demonstrated strong performance in terms of efficiency and return on equity, the decline in return on total capital in December 31, 2024, requires further investigation to understand the factors impacting the company's capital utilization and return generation.