Entegris Inc (ENTG)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 45.87% | 42.50% | 42.55% | 46.09% | 45.70% |
| Operating profit margin | 16.47% | 14.16% | 14.62% | 24.00% | 21.27% |
| Pretax margin | 9.91% | 4.89% | 7.53% | 20.84% | 19.05% |
| Net profit margin | 9.03% | 5.13% | 6.37% | 17.80% | 15.86% |
Entegris Inc's profitability ratios have shown fluctuations over the years. The gross profit margin has varied from 42.55% in 2022 to a peak of 46.09% in 2021, before settling at 45.87% in 2024. This indicates the company's ability to efficiently manage production costs and generate revenue from its core operations.
The operating profit margin has also displayed variability, with a low of 14.16% in 2023 and a high of 24.00% in 2021. Despite fluctuations, the operating profit margin has generally improved over the years, reaching 16.47% in 2024. This improvement reflects the company's effectiveness in controlling its operating expenses and increasing operational efficiency.
The pretax margin has experienced a significant decline from 20.84% in 2021 to 4.89% in 2023, before rebounding to 9.91% in 2024. This indicates fluctuations in the company's profitability before taxes, which could be influenced by various factors such as changes in taxation policies or one-time expenses.
Similarly, the net profit margin has shown fluctuations, with a substantial decrease from 17.80% in 2021 to 5.13% in 2023, followed by an increase to 9.03% in 2024. This ratio reflects the company's bottom-line profitability after considering all expenses, including taxes and interest payments.
Overall, while Entegris Inc has experienced fluctuating profitability ratios over the years, the company has managed to maintain positive margins in most cases and has shown resilience by improving its profitability margins in recent years. Investors may want to further investigate the reasons behind these fluctuations to assess the company's long-term profitability prospects.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.36% | 5.66% | 4.73% | 17.29% | 13.55% |
| Return on assets (ROA) | 3.49% | 2.05% | 2.06% | 12.82% | 10.11% |
| Return on total capital | 6.99% | 6.07% | 2.92% | 19.63% | 16.34% |
| Return on equity (ROE) | 7.93% | 5.30% | 2.06% | 23.87% | 21.38% |
Entegris Inc's profitability ratios show a mixed performance over the period from 2020 to 2024.
1. Operating return on assets (Operating ROA) has fluctuated during this period, starting at 13.55% in 2020, increasing to 17.29% in 2021, but then dropping to 4.73% in 2022. There was a slight improvement in 2023 to 5.66% and a further increase to 6.36% in 2024. This indicates that the company's operating efficiency in generating profits from its assets has varied over the years.
2. Return on assets (ROA) also shows inconsistency, with a gradual decrease from 10.11% in 2020 to 3.49% in 2024. This suggests that the overall profitability in relation to the total assets employed has been declining, indicating potential inefficiencies in asset utilization or a decrease in profitability.
3. Return on total capital demonstrates a similar trend to the ROA, with a peak at 19.63% in 2021 and then a decline to 6.99% in 2024. This ratio measures the returns generated from all capital invested in the company, indicating that the company's ability to generate profits relative to its total capital has been diminishing over time.
4. Return on equity (ROE) also shows a decreasing trend, with a gradual decline from 21.38% in 2020 to 7.93% in 2024. ROE reflects the return to the shareholders' equity, showing that the company's profitability in relation to the shareholders' investment has been eroding.
In summary, while there have been fluctuations in the profitability ratios of Entegris Inc over the period analyzed, the general trend indicates a decrease in profitability and efficiency in generating returns for both shareholders and capital providers. This trend may raise concerns about the company's operational performance and financial health, requiring further analysis to identify the underlying causes and potential strategies for improvement.