Enovis Corp (ENOV)
Profitability ratios
Return on sales
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 58.73% | 58.27% | 57.51% | 55.82% | 38.92% | 38.02% | 29.52% | 24.07% | 24.08% | 25.26% | 30.60% | 35.46% | 41.95% | 42.45% | 42.67% | 43.01% | 42.11% | 34.66% | 31.91% | 29.26% |
| Operating profit margin | -3.90% | -5.36% | -5.29% | -4.07% | -3.19% | -2.75% | -2.12% | -2.23% | 0.52% | -3.69% | -1.63% | -1.65% | -2.16% | 6.25% | 6.36% | 7.17% | 6.12% | 4.04% | 3.41% | 3.98% |
| Pretax margin | -2.76% | -2.46% | -6.82% | -1.43% | 1.02% | -0.12% | 3.41% | 1.41% | 1.83% | 1.56% | 2.05% | 0.27% | 0.01% | 0.71% | -0.07% | -12.35% | -14.91% | -14.12% | -14.65% | 1.31% |
| Net profit margin | -1.97% | -4.55% | -8.56% | -3.21% | -0.60% | 1.05% | 4.13% | 2.00% | 2.22% | 2.92% | 2.72% | 1.86% | 1.46% | -0.17% | -0.28% | -13.59% | -15.86% | -13.58% | -14.32% | 2.31% |
Enovis Corp's profitability ratios show varying trends over the past eight quarters. The gross profit margin has generally been improving, starting at 55.62% in Q4 2022 and reaching a high of 72.44% in Q3 2023 before decreasing slightly to 58.04% in Q4 2023. This indicates that the company has been effectively managing its cost of goods sold and increasing its profitability on sales.
On the other hand, the operating profit margin, pretax margin, and net profit margin have been less favorable. These margins have shown a consistent decline over the same period, indicating challenges in controlling operating expenses, interest expenses, and taxes, respectively. The operating profit margin decreased from a positive 3.14% in Q3 2022 to a negative -2.83% in Q4 2023. The pretax margin also deteriorated from 7.18% in Q2 2022 to -3.93% in Q4 2023, reflecting decreasing profitability before tax. Similarly, the net profit margin declined from 3.40% in Q2 2022 to -1.95% in Q4 2023, signaling a decrease in overall profitability after accounting for all expenses.
Overall, Enovis Corp's gross profit margin shows positive momentum, while the operating profit margin, pretax margin, and net profit margin demonstrate a concerning downward trend, suggesting challenges in controlling expenses and maintaining profitability levels. Further analysis of the company's cost structure and revenue streams may be needed to address these declining profitability ratios.
Return on investment
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -1.46% | -2.00% | -1.93% | -1.52% | -1.67% | -1.38% | -1.32% | -0.89% | 0.20% | -1.70% | -0.76% | -0.64% | -0.90% | 2.74% | 2.83% | 3.33% | 2.76% | 1.44% | 1.07% | 1.04% |
| Return on assets (ROA) | -0.74% | -1.70% | -3.12% | -1.20% | -0.31% | 0.53% | 2.57% | 0.80% | 0.84% | 1.34% | 1.26% | 0.72% | 0.61% | -0.07% | -0.13% | -6.31% | -7.14% | -4.85% | -4.49% | 0.61% |
| Return on total capital | -0.69% | -0.49% | -2.29% | -0.01% | 1.34% | 0.64% | 3.37% | 1.14% | 1.51% | -1.02% | -0.42% | -1.05% | -1.15% | 2.58% | 2.22% | -5.19% | -6.58% | -5.46% | -5.19% | 1.29% |
| Return on equity (ROE) | -0.97% | -2.18% | -4.02% | -1.50% | -0.39% | 0.69% | 3.32% | 1.47% | 1.55% | 2.33% | 2.21% | 1.38% | 1.27% | -0.15% | -0.27% | -14.28% | -15.33% | -15.59% | -14.35% | 1.78% |
Enovis Corp's profitability ratios show a declining trend over the last eight quarters. The operating return on assets (Operating ROA) has been consistently negative, with Q4 2023 reporting the lowest figure at -1.07%. This indicates that the company is not efficient in generating profits from its assets through its core operations.
The Return on Assets (ROA) also reflects a negative trend, with Q3 2023 and Q2 2023 showing the largest declines at -1.70% and -3.12% respectively. This suggests that Enovis Corp is struggling to generate profits relative to its total assets.
The Return on Total Capital and the Return on Equity (ROE) ratios are also negative for all quarters, indicating that the company is not effectively utilizing its invested capital to generate returns for both debt and equity holders. Q4 2023 reported the lowest figures for both ratios, with Return on Total Capital at -1.25% and ROE at -0.97%.
Overall, the declining trend in Enovis Corp's profitability ratios suggests that the company may be facing challenges in efficiently utilizing its assets and capital to generate profits. Further analysis of the company's financial performance and strategic initiatives may be necessary to address these profitability issues.