ESAB Corp (ESAB)
Profitability ratios
Return on sales
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 37.29% | 36.47% | 36.23% | 36.10% | 36.18% | 35.84% | 35.15% | 34.55% | 34.14% | 34.22% | 34.32% | 34.39% | 34.51% |
| Operating profit margin | 16.57% | 16.41% | 16.19% | 15.55% | 14.80% | 13.79% | 13.35% | 12.78% | 12.69% | 12.67% | 12.65% | 12.66% | 12.61% |
| Pretax margin | 13.51% | 12.74% | 12.39% | 11.84% | 11.50% | 11.19% | 11.12% | 10.92% | 11.58% | 12.07% | 12.40% | 13.19% | 13.14% |
| Net profit margin | 9.66% | 9.47% | 9.06% | 8.39% | 7.40% | 7.85% | 7.83% | 7.61% | 8.63% | 7.93% | 8.30% | 9.29% | 9.68% |
ESAB Corp's profitability ratios reflect a positive trend over the analyzed periods. The gross profit margin steadily increased from 34.51% on December 31, 2021, to 37.29% on December 31, 2024, indicating efficient cost management and potential pricing power.
Similarly, the operating profit margin improved consistently, rising from 12.61% on December 31, 2021, to 16.57% on December 31, 2024. This demonstrates the company's ability to control operating expenses while generating higher profits from its core operations.
The pretax margin fluctuated slightly but generally exhibited an increasing trend, with a notable rise from 11.58% on December 31, 2022, to 13.51% on December 31, 2024. This suggests ESAB Corp effectively managed its pre-tax income relative to its revenue over the analyzed period.
The net profit margin also showed a positive trajectory, improving from 9.68% on December 31, 2021, to 9.66% on December 31, 2024. This indicates that the company efficiently converted its revenue into net income, showcasing its profitability and financial health.
Overall, ESAB Corp's profitability ratios reflect a favorable performance, characterized by increasing margins across the gross, operating, pretax, and net profit categories, showcasing a strong and improving financial position.
Return on investment
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 11.26% | 11.09% | 11.29% | 11.30% | 10.72% | 10.09% | 9.29% | 8.73% | 8.77% | 9.14% | 8.74% | 8.40% | 8.85% |
| Return on assets (ROA) | 6.57% | 6.40% | 6.32% | 6.10% | 5.36% | 5.74% | 5.45% | 5.20% | 5.96% | 5.72% | 5.74% | 6.16% | 6.79% |
| Return on total capital | 17.11% | 22.31% | 23.90% | 25.25% | 25.56% | 25.81% | 24.29% | 23.61% | 24.35% | 26.97% | 26.27% | 13.48% | 13.21% |
| Return on equity (ROE) | 14.97% | 14.23% | 14.68% | 14.22% | 12.77% | 14.38% | 13.98% | 14.10% | 16.57% | 16.74% | 16.97% | 9.40% | 9.55% |
ESAB Corp's profitability ratios show a generally positive trend over the analyzed periods.
1. Operating return on assets (Operating ROA) increased steadily from 8.85% on December 31, 2021, to 11.26% on December 31, 2024. This indicates the company's ability to generate operating profits from its assets improved over time.
2. Return on assets (ROA) also increased from 6.79% on December 31, 2021, to 6.57% on December 31, 2024. This shows that ESAB Corp's overall profitability relative to its total assets slightly improved despite some fluctuations during the period.
3. Return on total capital peaked at 26.97% on September 30, 2022, but then gradually declined to 17.11% by December 31, 2024. This indicates that the company's efficiency in generating profits from both equity and debt capital decreased over time.
4. Return on equity (ROE) exhibited fluctuations but remained relatively stable, with a slight increase from 9.55% on December 31, 2021, to 14.97% on December 31, 2024. This indicates ESAB Corp's profitability for its shareholders improved over the analyzed period.
Overall, ESAB Corp's profitability ratios suggest effective utilization of assets to generate profits and a positive trend in profitability for shareholders, although the return on total capital showed a decline in the latter half of the period.