Fortune Brands Innovations Inc. (FBIN)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 13.29% | 40.93% | 40.83% | 59.77% | 35.60% |
| Operating profit margin | 13.29% | 16.39% | 16.89% | 15.68% | 12.12% |
| Pretax margin | 11.17% | 17.23% | 19.56% | 18.33% | 9.99% |
| Net profit margin | 8.74% | 14.54% | 16.09% | 15.27% | 7.49% |
Fortune Brands Innovations Inc.'s profitability ratios have shown fluctuations over the past five years. The gross profit margin decreased significantly from 2019 to 2020 but has since stabilized at around 40%. This indicates that the company has been able to manage its cost of goods sold more efficiently in recent years.
The operating profit margin has also shown variability, with an increase from 2019 to 2020 followed by fluctuations around the 16-17% range. This suggests that while the company is generating profits from its core operations, there may be factors impacting profitability.
The pretax margin has generally been on an upward trend, reaching a peak in 2021 before declining slightly in 2022 and 2023. This indicates that the company has been successful in managing its operating expenses but may have experienced fluctuations in its pre-tax profitability.
Similarly, the net profit margin has shown improvement over the years, especially from 2019 to 2021, before declining slightly in 2022 and 2023. This suggests that while the company has been successful in generating profits after accounting for all expenses, there may have been recent challenges impacting its bottom line.
Overall, Fortune Brands Innovations Inc. has demonstrated the ability to adapt to changing market conditions and manage its profitability effectively, despite facing some challenges in recent years.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.37% | 12.65% | 10.22% | 7.71% | 11.10% |
| Return on assets (ROA) | 6.16% | 11.22% | 9.73% | 7.52% | 6.87% |
| Return on total capital | 12.39% | 22.42% | 19.04% | 13.98% | 15.91% |
| Return on equity (ROE) | 17.64% | 32.91% | 25.20% | 19.93% | 17.80% |
Fortune Brands Innovations Inc. has exhibited fluctuating profitability ratios over the past five years. The Operating return on assets (Operating ROA) decreased from 12.65% in 2022 to 9.37% in 2023, indicating a decline in the company's ability to generate operating income from its assets. However, the ROA saw a similar downward trend, albeit with a smaller magnitude, decreasing from 11.22% in 2022 to 6.16% in 2023, suggesting a lower overall profitability on total assets.
On the other hand, the Return on total capital and Return on equity (ROE) ratios both experienced a notable increase from 2022 to 2023. The Return on total capital increased from 22.42% in 2022 to 12.39% in 2023, indicating an improvement in the company's ability to generate returns from its total invested capital. Similarly, the ROE ratio surged from 32.91% in 2022 to 17.64% in 2023, showcasing a more favorable return for the company's equity holders.
Overall, the different profitability ratios paint a mixed picture for Fortune Brands Innovations Inc., with some indicating a decline in profitability while others showing improvements in generating returns on capital and equity. It would be advisable to delve deeper into the company's financial performance and strategy to ascertain the drivers behind these fluctuations in profitability ratios.