ESAB Corp (ESAB)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 37.85% | 36.61% | 34.14% | 34.51% | 35.00% |
| Operating profit margin | 16.33% | 14.57% | 12.69% | 12.61% | 10.37% |
| Pretax margin | 13.51% | 11.50% | 11.58% | 13.14% | 10.56% |
| Net profit margin | 9.66% | 7.34% | 8.63% | 9.68% | 8.07% |
ESAB Corp's profitability ratios indicate a fluctuating performance over the years. The gross profit margin has shown a slight decrease from 35.00% in 2020 to 34.51% in 2021 and further to 34.14% in 2022. However, there was a significant improvement in 2023 and 2024, reaching 36.61% and 37.85%, respectively.
In terms of operating profit margin, ESAB Corp experienced a steady increase from 10.37% in 2020 to 16.33% in 2024. This indicates an improvement in operational efficiency and cost management over the years.
The pretax margin has shown volatility, with fluctuations between 10.56% in 2020 and 13.51% in 2024. This suggests that ESAB Corp may have experienced varied levels of pre-tax profitability during this period.
Similarly, the net profit margin exhibited variability, starting at 8.07% in 2020, peaking at 9.68% in 2021, then declining to 7.34% in 2023, and finally rebounding to 9.66% in 2024. This trend indicates changes in net income relative to total revenue.
Overall, ESAB Corp's profitability ratios reflect a mixed performance, with improvements in certain years and challenges in others. Further analysis of the company's financial statements and operating activities may provide insights into the factors driving these fluctuations and help in evaluating the overall financial health of the company.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 11.09% | 10.56% | 8.77% | 8.85% | 5.97% |
| Return on assets (ROA) | 6.57% | 5.32% | 5.96% | 6.79% | 4.65% |
| Return on total capital | 24.61% | 24.60% | 26.15% | 12.97% | 8.97% |
| Return on equity (ROE) | 14.97% | 12.67% | 16.57% | 9.55% | 6.29% |
ESAB Corp's profitability ratios demonstrate a positive trend over the years, indicating an improvement in the company's ability to generate profits from its assets and capital.
- Operating return on assets (Operating ROA) has shown a consistent increase, rising from 5.97% in 2020 to 11.09% in 2024. This indicates that ESAB Corp's operating income generated from its assets has been gradually improving.
- Return on assets (ROA) has also exhibited an upward trajectory, with a slight dip in 2023 but rebounding in 2024. This ratio reflects ESAB Corp's overall profitability in relation to its total assets, showcasing a positive performance overall.
- Return on total capital has significantly increased from 8.97% in 2020 to 24.61% in 2024, demonstrating the company's enhanced efficiency in generating returns for both equity and debt holders.
- Return on equity (ROE) has displayed a similar upward trend, indicating a significant improvement in the company's profitability specifically for its shareholders. ESAB Corp has shown steady growth in generating profits in relation to shareholders' equity over the years.
Overall, ESAB Corp's profitability ratios reflect a positive outlook, showcasing an efficient utilization of assets and capital to generate increasing returns for its stakeholders.