ESCO Technologies Inc (ESE)
Profitability ratios
Return on sales
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 38.73% | 38.37% | 37.77% | 37.25% | 37.74% |
| Operating profit margin | 11.02% | 10.86% | 9.06% | 9.30% | 12.23% |
| Pretax margin | 12.56% | 12.48% | 11.28% | 15.49% | 12.42% |
| Net profit margin | 9.77% | 9.65% | 8.88% | 13.64% | 9.92% |
Esco Technologies, Inc.'s profitability ratios demonstrate a consistent and generally positive trend over the past five years. The company's gross profit margin has shown a steady increase, reaching 39.29% in 2023 from 37.45% in 2019. This indicates an improvement in the efficiency of production and cost control.
Similarly, the operating profit margin has improved from 12.85% in 2019 to 13.56% in 2023, reflecting the company's ability to generate profits from its core operations. The pretax margin has also shown a consistent uptrend, reaching 12.44% in 2023, indicating the company's ability to control operating expenses and generate earnings before taxes.
However, the net profit margin saw fluctuations over the years, with a decline in 2021 but an increase to 9.68% in 2023. This suggests that Esco Technologies, Inc. may have experienced some challenges in controlling non-operating expenses or interest payments in 2021. Nonetheless, the company managed to improve its net profitability in the most recent year.
In summary, Esco Technologies, Inc. has demonstrated overall strong profitability ratios, with improvements in gross profit margin, operating profit margin, and pretax margin. The fluctuations in net profit margin warrant further investigation to understand the underlying factors affecting the company's bottom-line profitability.
Return on investment
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.20% | 5.59% | 4.11% | 4.95% | 6.81% |
| Return on assets (ROA) | 5.50% | 4.98% | 4.03% | 7.26% | 5.53% |
| Return on total capital | 10.53% | 9.43% | 7.18% | 11.97% | 10.04% |
| Return on equity (ROE) | 8.18% | 7.85% | 6.23% | 10.37% | 9.81% |
Esco Technologies, Inc.'s profitability ratios indicate the company's ability to generate profits relative to its assets and capital. The operating return on assets (Operating ROA) has shown a positive trend over the period, reflecting an improvement in the company's operational efficiency and profitability. This metric increased from 5.20% in 2021 to 7.70% in 2023.
However, when considering the overall return on assets (ROA), a slightly different trend is observed. The ROA decreased from 7.42% in 2020 to 4.03% in 2021, before rebounding to 5.50% in 2023. This indicates that Esco Technologies, Inc. experienced a dip in its ability to generate profits from its total assets in 2021 but has since made progress in this area.
The return on total capital, which measures the return generated from all of the company's capital, also demonstrates positive growth, increasing from 6.99% in 2021 to 10.51% in 2023. This suggests that the company has been successful in utilizing its total capital more effectively to generate higher returns.
Similarly, the return on equity (ROE) shows an upward trajectory, with the ratio improving from 6.23% in 2021 to 8.18% in 2023, indicating that Esco Technologies, Inc. has been successful in increasing shareholder value.
Overall, the profitability ratios reflect mixed performance, with improvements in certain areas signaling enhanced profitability and effectively managed capital, while some metrics have shown fluctuations. It's essential for investors and stakeholders to further investigate the factors influencing these ratios to make informed decisions about Esco Technologies, Inc.'s financial performance.