Fortune Brands Innovations Inc. (FBIN)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 16.01% | 13.29% | 40.93% | 40.83% | 59.77% |
| Operating profit margin | 16.01% | 13.29% | 16.39% | 16.89% | 15.68% |
| Pretax margin | 13.14% | 11.17% | 17.23% | 19.56% | 18.33% |
| Net profit margin | 10.24% | 8.74% | 14.54% | 16.09% | 15.27% |
Fortune Brands Innovations Inc.'s profitability ratios have shown fluctuations over the years based on the provided data. The gross profit margin decreased from 59.77% in December 31, 2020, to 40.83% in December 31, 2021, and remained relatively stable around 40% for the next two years, but saw a significant drop to 13.29% by December 31, 2023, before slightly improving to 16.01% by December 31, 2024.
Operating profit margin, on the other hand, experienced a slight increase from 15.68% in December 31, 2020, to 16.89% in December 31, 2021, and then remained fairly consistent around the 16% range, mirroring the trend of gross profit margin.
Pretax margin also followed a similar pattern, starting at 18.33% in December 31, 2020, peaking at 19.56% in December 31, 2021, and then gradually decreasing to 13.14% by December 31, 2024.
Net profit margin showed a declining trend across the years, decreasing from 15.27% in December 31, 2020, to 10.24% by December 31, 2024, with the most significant drop occurring in December 31, 2023, when it fell to 8.74%.
Overall, the declining trend in net profit margin, coupled with fluctuations in gross profit margin and pretax margin, indicates potential challenges in managing costs and maintaining profitability for Fortune Brands Innovations Inc.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 11.25% | 9.37% | 12.65% | 10.22% | 7.71% |
| Return on assets (ROA) | 7.19% | 6.16% | 11.22% | 9.73% | 7.52% |
| Return on total capital | 16.06% | 12.39% | 22.42% | 19.04% | 13.98% |
| Return on equity (ROE) | 19.48% | 17.64% | 32.91% | 25.20% | 19.93% |
Fortune Brands Innovations Inc. has shown a positive trend in its profitability ratios over the past five years. The Operating Return on Assets (Operating ROA) has consistently improved from 7.71% in 2020 to 11.25% in 2024, indicating the company's ability to generate operating profits relative to its asset base has been strengthening.
Return on Assets (ROA) also exhibited an upward trajectory, increasing from 7.52% in 2020 to 7.19% in 2024, which signifies the effectiveness of Fortune Brands Innovations Inc. in utilizing its assets to generate profits.
Return on Total Capital has shown significant growth, rising from 13.98% in 2020 to 16.06% in 2024. This metric reflects the company's ability to generate returns for both debt and equity holders.
Return on Equity (ROE) has generally increased over the period, reaching 19.48% in 2024 from 19.93% in 2020. The ROE indicates the company's efficiency in generating profits from shareholder equity and its shareholders' overall return on investment.
Overall, these profitability ratios suggest that Fortune Brands Innovations Inc. has been successful in enhancing its operational efficiency and generating satisfactory returns for its investors over the analyzed period.