Exponent Inc (EXPO)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 34.19% | 42.53% | 35.70% | 32.53% | 33.00% |
| Operating profit margin | 20.74% | 27.44% | 23.36% | 20.82% | 20.40% |
| Pretax margin | 25.32% | 25.76% | 26.99% | 24.24% | 24.97% |
| Net profit margin | 18.69% | 19.94% | 21.70% | 20.64% | 19.77% |
Exponent Inc's profitability ratios display fluctuations over the past five years. The gross profit margin, a measure of efficiency in production, decreased from 2018 to 2019, but has since been gradually increasing. This trend indicates that the company is improving its cost management and/or generating higher revenues.
The operating profit margin reflects the company's ability to control its operating expenses. While there was a noticeable decrease from 2018 to 2019, the margin has been steadily increasing in the following years. This suggests that Exponent has been operating more efficiently and effectively managing its expenses.
The pretax margin, which shows Exponent's profitability before taxes, has varied slightly over the years. Even though there was a slight dip in 2020, the margins have remained relatively stable, indicating consistent performance in generating profits before tax expenses.
The net profit margin, which represents the company's profitability after all expenses have been deducted, also shows some fluctuation over the years. Despite some fluctuations, the net profit margin has generally been within a narrow range, indicating that Exponent has been able to maintain its bottom line profitability relatively well.
Overall, Exponent Inc's profitability ratios demonstrate a trend of improvement in recent years, suggesting that the company is managing its costs effectively and generating profits efficiently.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 17.21% | 24.01% | 15.93% | 14.35% | 15.11% |
| Return on assets (ROA) | 15.51% | 17.44% | 14.80% | 14.23% | 14.64% |
| Return on total capital | 31.26% | 43.91% | 26.12% | 23.03% | 24.30% |
| Return on equity (ROE) | 28.18% | 31.90% | 24.27% | 22.84% | 23.54% |
Exponent Inc's profitability ratios show a generally positive trend over the past five years. Firstly, the operating return on assets (Operating ROA) has ranged from 15.93% to 24.01% during this period, indicating the company's ability to generate profits from its assets used in operations.
The Return on Assets (ROA) has also been consistent, with values between 14.23% and 17.44%. This ratio demonstrates how efficiently the company is utilizing its assets to generate profits.
Moreover, the Return on Total Capital has shown significant variation, ranging from 23.03% to 43.91%. This metric indicates the company's efficiency in generating returns from both debt and equity capital invested in the business.
Lastly, the Return on Equity (ROE) has remained relatively stable, fluctuating between 22.84% and 31.90%. This ratio reflects the company's ability to generate profits from the shareholders' equity, illustrating strong financial performance.
Overall, Exponent Inc has exhibited consistent profitability over the years, with efficiency in asset utilization and capital management, which has translated into healthy returns for its shareholders.