Enovis Corp (ENOV)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 56.02% | 58.04% | 55.62% | 41.87% | 41.95% |
| Operating profit margin | -36.81% | -3.85% | -5.67% | 6.66% | 5.29% |
| Pretax margin | -39.05% | -3.93% | -0.13% | 4.29% | 1.89% |
| Net profit margin | -39.17% | -1.95% | -2.44% | 2.56% | 2.09% |
Enovis Corp's profitability ratios have shown fluctuating trends over the years. Firstly, the gross profit margin has demonstrated a positive trajectory, increasing from 41.95% in 2020 to 58.04% in 2023 before slightly decreasing to 56.02% in 2024. This indicates that the company has been able to improve its efficiency in production and pricing strategies.
However, the operating profit margin tells a different story. It started at 5.29% in 2020, rose to 6.66% in 2021, but then declined significantly to -36.81% in 2024. This suggests that Enovis Corp's operating expenses have been outweighing its operating income, resulting in operating losses.
The pretax margin also follows a similar declining trend, starting at 1.89% in 2020, reaching 4.29% in 2021, and eventually plummeting to -39.05% in 2024. This shows that the company's pre-tax profitability has worsened over the years, indicating challenges in generating profits before considering taxes.
Lastly, the net profit margin, which reflects the company's bottom line profitability, paints a concerning picture. It started at 2.09% in 2020, increased slightly to 2.56% in 2021, but then turned negative to -39.17% in 2024. This sharp decline indicates that Enovis Corp has been experiencing significant decreases in net income in relation to its revenue, leading to substantial losses in 2024.
Overall, Enovis Corp's profitability ratios highlight mixed performance, with improvements in gross profit margin overshadowed by significant declines in operating, pre-tax, and net profit margins in the later years. This suggests that the company may face challenges in controlling costs and generating sustainable profits, requiring further analysis and strategic adjustments to enhance its overall profitability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -16.44% | -1.46% | -2.07% | 3.01% | 2.21% |
| Return on assets (ROA) | -17.49% | -0.74% | -0.89% | 1.16% | 0.87% |
| Return on total capital | -30.27% | -1.38% | 0.66% | -1.99% | -1.87% |
| Return on equity (ROE) | -32.22% | -0.97% | -1.11% | 2.14% | 1.81% |
Based on the provided data, Enovis Corp's profitability ratios portray a mixed performance over the years:
1. Operating Return on Assets (Operating ROA):
- Enovis Corp's Operating ROA has shown some improvement from 2020 to 2021, indicating better operational efficiency in generating profit per dollar of assets. However, there was a significant decline in 2022 and subsequent years, with negative percentages indicating operational losses relative to assets.
2. Return on Assets (ROA):
- A similar trend can be observed in the overall ROA, with a slight increase in 2021 before experiencing negative percentages from 2022 onwards. This reflects a deteriorating ability to generate profit from its total assets.
3. Return on Total Capital:
- Enovis Corp's Return on Total Capital shows fluctuating performance, turning positive briefly in 2022 before declining sharply in 2024. The negative percentages in most years suggest a struggle to generate returns on the total invested capital.
4. Return on Equity (ROE):
- ROE indicates the return generated for the company's shareholders. Enovis Corp's ROE has been decreasing consistently from 2020 to 2024, with negative figures in the later years indicating a decreasing profitability in relation to shareholders' equity.
Overall, Enovis Corp's profitability ratios suggest a challenging financial performance, characterized by declining returns on assets, total capital, and equity. It may need to address operational inefficiencies and explore strategies to improve profitability and investor confidence.