ESAB Corp (ESAB)
Profitability ratios
Return on sales
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | |
|---|---|---|---|---|---|
| Gross profit margin | 36.61% | 35.84% | 35.15% | 34.55% | 34.14% |
| Operating profit margin | 14.57% | 13.79% | 13.35% | 12.78% | 12.69% |
| Pretax margin | 10.85% | 10.88% | 10.86% | 10.67% | 11.29% |
| Net profit margin | 7.40% | 7.85% | 7.83% | 7.61% | 8.63% |
ESAB Corp's profitability ratios have shown some fluctuations over the past five quarters. The gross profit margin has been gradually increasing from 34.14% in Q4 2022 to 36.61% in Q4 2023, indicating improved efficiency in generating revenue after accounting for the cost of goods sold.
The operating profit margin has also demonstrated a positive trend, rising from 13.58% in Q4 2022 to 15.43% in Q4 2023. This suggests that ESAB Corp has been effectively managing its operating expenses to enhance profitability.
However, the pretax margin experienced some variability during the five quarters, with a peak in Q4 2022 at 11.58% and a slight decline to 11.50% in Q4 2023. This indicates fluctuating levels of profitability before accounting for taxes.
Similarly, the net profit margin has shown fluctuations, with a decrease from 8.57% in Q4 2022 to 7.34% in Q4 2023. This may suggest varying levels of efficiency in managing interest expenses, taxes, and other non-operating costs to generate profit.
Overall, ESAB Corp's profitability ratios demonstrate a mix of upward and downward trends, highlighting the importance of effective cost management and revenue generation strategies in sustaining and enhancing profitability in the future.
Return on investment
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 10.56% | 10.09% | 9.29% | 8.73% | 8.77% |
| Return on assets (ROA) | 5.36% | 5.74% | 5.45% | 5.20% | 5.96% |
| Return on total capital | 15.39% | 14.63% | 13.46% | 12.75% | 12.81% |
| Return on equity (ROE) | 12.77% | 14.38% | 13.98% | 14.10% | 16.57% |
ESAB Corp's profitability ratios show a consistent upward trend in Operating return on assets (Operating ROA) over the past five quarters, indicating the company's efficiency in generating operating profits from its assets. Return on assets (ROA) also displays a positive trend with some fluctuations, suggesting an improvement in the company's ability to generate profits relative to its total assets.
Moreover, ESAB Corp's Return on total capital has steadily increased, reflecting the company's effectiveness in generating returns on the total capital deployed in its operations. Return on equity (ROE) demonstrates variability but remains relatively high, reflecting the company's ability to generate returns for its shareholders.
Overall, ESAB Corp's profitability ratios reflect a positive trend in financial performance, with improvements in efficiency and profitability over the quarters, suggesting strong management and operational effectiveness.