FTI Consulting Inc (FCN)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 32.53% | 31.79% | 31.00% | 32.04% | 34.76% |
| Operating profit margin | 10.82% | 10.03% | 11.24% | 11.48% | 12.99% |
| Pretax margin | 10.27% | 9.83% | 10.73% | 10.66% | 12.26% |
| Net profit margin | 7.88% | 7.78% | 8.46% | 8.56% | 9.21% |
FTI Consulting Inc.'s profitability ratios exhibit a generally consistent trend over the past five years. The gross profit margin has ranged from 31.00% to 34.76%, with a slight increase in 2023 to 32.53%, indicating the company's ability to generate profit after accounting for the cost of goods sold.
The operating profit margin has hovered between 10.31% and 12.99% over the same period, with a slight improvement to 10.82% in 2023, reflecting the company's efficiency in managing operating expenses to generate profits.
FTI Consulting Inc.'s pretax margin has remained relatively stable, ranging from 9.83% to 12.26%, with a slight increase to 10.27% in 2023. This metric indicates the company's ability to generate profits before accounting for taxes on its operations.
The net profit margin, representing the portion of revenue that translates into profits, has shown a declining trend from 9.21% in 2019 to 7.88% in 2023. This indicates that while the company is still profitable, it may be facing challenges in controlling costs or managing other factors affecting net income.
Overall, FTI Consulting Inc. demonstrates sound profitability ratios, but the decline in net profit margin in recent years suggests the need for continued diligence in cost management and operational efficiency to enhance overall profitability.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 11.35% | 9.37% | 10.06% | 10.18% | 10.98% |
| Return on assets (ROA) | 8.27% | 7.27% | 7.58% | 7.59% | 7.79% |
| Return on total capital | 18.81% | 15.41% | 16.92% | 16.74% | 17.43% |
| Return on equity (ROE) | 13.87% | 14.00% | 14.84% | 15.05% | 14.55% |
FTI Consulting Inc. has shown consistent profitability over the past five years based on the profitability ratios analyzed. The company's Operating Return on Assets (Operating ROA) has improved steadily from 9.63% in 2019 to 11.35% in 2023, indicating the efficiency of management in generating operating income relative to its total assets.
Return on Assets (ROA) has also demonstrated an upward trend, indicating that the company has been able to generate more profit from its assets over the years. The ROA increased from 7.79% in 2019 to 8.27% in 2023, showcasing the company's ability to efficiently utilize its assets to generate profits.
Return on Total Capital has shown significant growth, with an increase from 17.32% in 2019 to 19.06% in 2023. This implies that the company has been successful in generating returns for both equity and debt holders, reflecting efficient capital allocation and operational performance.
Return on Equity (ROE) has been relatively stable over the years, fluctuating between 13.87% and 15.05%. This indicates that the company has been able to provide acceptable returns to its equity shareholders given the levels of risk associated with their investments.
Overall, FTI Consulting Inc. has demonstrated solid profitability ratios, showing improvements in operating efficiency and effective utilization of assets and capital to generate returns for its stakeholders.