Exponent Inc (EXPO)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 100.00% | 92.26% | 93.17% | 93.01% | 100.00% |
| Operating profit margin | 21.41% | 20.74% | 27.44% | 23.36% | 20.82% |
| Pretax margin | 26.39% | 25.32% | 25.76% | 26.99% | 24.24% |
| Net profit margin | 19.52% | 18.69% | 19.94% | 21.70% | 20.64% |
Exponent Inc's profitability ratios demonstrate its ability to generate profits relative to its revenue across the years. The gross profit margin remained stable around the high 90% range, indicating efficient cost management and pricing strategies. The operating profit margin showed improvement from 2020 to 2022 before fluctuating slightly, indicating effective control over operating expenses and strong operational performance. The pretax margin remained relatively consistent, showing the company's ability to manage its pre-tax earnings effectively. Furthermore, the net profit margin, although slightly declining from 2021 to 2023, remained within a reasonable range, reflecting the company's ability to translate revenue into net profits after accounting for all expenses. Overall, Exponent Inc has maintained healthy profitability levels over the years, suggesting sound financial health and operational efficiency.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 15.38% | 17.21% | 24.01% | 15.93% | 14.35% |
| Return on assets (ROA) | 14.02% | 15.51% | 17.44% | 14.80% | 14.23% |
| Return on total capital | 28.39% | 31.26% | 43.91% | 26.12% | 23.03% |
| Return on equity (ROE) | 25.89% | 28.18% | 31.90% | 24.27% | 22.84% |
Exponent Inc's profitability ratios demonstrate a consistent performance over the years, with some variability in specific metrics.
1. Operating return on assets (Operating ROA) increased from 14.35% in December 2020 to 15.93% in December 2021, significantly rose to 24.01% in December 2022, then decreased to 17.21% by December 2023, and slightly declined further to 15.38% in December 2024.
2. Return on assets (ROA) saw a slight increase from 14.23% in December 2020 to 14.80% in December 2021, followed by a more noticeable rise to 17.44% in December 2022. However, it dropped to 15.51% in December 2023 and further declined to 14.02% by December 2024.
3. Return on total capital exhibited a positive trend, starting at 23.03% in December 2020, increasing to 26.12% in December 2021, then substantially climbing to 43.91% in December 2022. However, it decreased to 31.26% in December 2023 and further dropped to 28.39% in December 2024.
4. Return on equity (ROE) also showed growth, starting at 22.84% in December 2020, then rising to 24.27% in December 2021, further increasing to 31.90% in December 2022. However, it declined to 28.18% in December 2023 and dropped slightly to 25.89% by December 2024.
Overall, Exponent Inc's profitability ratios suggest a solid performance, with fluctuations in specific periods. The company's ability to generate profits from its assets, total capital, and equity indicates efficient management and potential for sustained financial success. Further analysis of the underlying factors driving these changes would be necessary to assess the company's long-term profitability outlook.