Everus Construction Group Inc (ECG)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|
| Gross profit margin | 11.29% | 10.23% | 12.08% |
| Operating profit margin | 6.31% | 6.10% | 7.10% |
| Pretax margin | 5.48% | 5.92% | 7.02% |
| Net profit margin | 4.16% | 4.62% | 5.33% |
Everus Construction Group Inc's profitability ratios have experienced fluctuations over the past three years. The gross profit margin, which shows the percentage of revenue remaining after deducting the cost of goods sold, has shown a slight increase from 10.23% in 2022 to 11.29% in 2023, although it was higher at 12.08% in 2021.
The operating profit margin, indicating the company's ability to generate profit from its core operations, has also shown improvement, rising from 6.10% in 2022 to 6.31% in 2023, but lower than the 7.10% reported in 2021.
The pretax margin, which reflects the company's efficiency in managing operating expenses and interest payments, decreased from 5.92% in 2022 to 5.48% in 2023. This is notably lower than the 7.02% reported in 2021.
Lastly, the net profit margin, representing the company's overall profitability after all expenses have been deducted, declined from 4.62% in 2022 to 4.16% in 2023, with a more significant drop from 5.33% in 2021.
Overall, Everus Construction Group Inc's profitability has shown mixed results, with improvements in gross profit and operating profit margins, but declining pretax and net profit margins. Further analysis and monitoring of the company's financial performance may be necessary to identify the reasons behind these fluctuations and to ensure sustainable profitability in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|
| Operating return on assets (Operating ROA) | 16.22% | 14.50% | — |
| Return on assets (ROA) | 10.70% | 10.99% | — |
| Return on total capital | 41.07% | 43.43% | — |
| Return on equity (ROE) | 26.46% | 32.64% | — |
Everus Construction Group Inc's profitability ratios show a positive trend overall.
The operating return on assets (Operating ROA) has been consistently improving from 14.50% in 2022 to 16.22% in 2023, indicating that the company is generating more operating income relative to its total assets each year.
Return on assets (ROA) has slightly decreased from 10.99% in 2022 to 10.70% in 2023. This ratio signifies the company's ability to generate profit from its total assets, and although it decreased slightly, the company is still effectively utilizing its assets to generate earnings.
Return on total capital has also experienced a slight decline from 43.43% in 2022 to 41.07% in 2023, but it remains at a high level. This ratio indicates the overall profitability of the company relative to its total capital employed, including both debt and equity.
Return on equity (ROE) has decreased from 32.64% in 2022 to 26.46% in 2023, showing a decline in the profitability of the company from the perspective of its shareholders. However, the ROE is still at a respectable level, indicating that the company is generating a decent return on the shareholders' equity.
Overall, Everus Construction Group Inc's profitability ratios demonstrate a positive trend, with the company efficiently utilizing its assets and generating satisfactory returns for its shareholders and total capital employed.