Fluor Corporation (FLR)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 3.08% | 2.58% | 3.21% | 2.60% | -1.33% |
| Operating profit margin | 0.95% | 1.52% | -1.93% | -1.47% | -5.36% |
| Pretax margin | 2.42% | 2.30% | -2.97% | -2.61% | -6.73% |
| Net profit margin | 0.90% | 1.06% | -3.11% | -2.76% | -9.85% |
Fluor Corporation's profitability ratios have shown fluctuations over the past five years. The gross profit margin has ranged from -2.98% in 2019 to a peak of 3.31% in 2021, with a value of 3.08% in 2023. The operating profit margin has also varied, from a low of -4.09% in 2019 to a high of 1.58% in 2023. The pretax margin has shown a mix of negative and positive values, with the highest being 2.04% in 2023 and the lowest at -8.90% in 2019.
The net profit margin has also fluctuated, with a widening loss in 2019 at -10.61%, improving to -3.54% in 2021, and further improving to 0.54% in 2023. Overall, while there have been improvements in profitability ratios in recent years, there are still areas that may require attention to sustain and further enhance 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) | 2.11% | 3.06% | -3.85% | -3.17% | -10.40% |
| Return on assets (ROA) | 1.99% | 2.12% | -6.21% | -5.95% | -19.11% |
| Return on total capital | 14.04% | 13.57% | -12.86% | -12.45% | -31.07% |
| Return on equity (ROE) | 7.16% | 8.12% | -31.59% | -42.22% | -102.31% |
Fluor Corporation's profitability ratios have shown varying trends over the past five years.
1. Operating return on assets (Operating ROA) has improved from 1.98% in 2020 to 3.51% in 2023, indicating that the company has become more efficient in generating operating profits from its assets.
2. Return on assets (ROA) was negative in 2019 and 2020, but turned positive in the following years, with a significant increase from -6.05% in 2021 to 1.19% in 2023. This suggests that Fluor is generating a modest profit relative to its total assets.
3. Return on total capital has shown a consistent upward trend, increasing from 5.23% in 2020 to 7.91% in 2023. This indicates that the company is generating higher returns in relation to its total capital employed.
4. Return on equity (ROE) has also demonstrated improvements over the years, recovering from substantial negative figures in 2019 and 2020. The ROE increased from -42.23% in 2020 to 4.28% in 2023, although it has not yet reached the levels seen in 2019.
Overall, Fluor Corporation's profitability ratios reflect a positive trend in recent years, with improvements in operating efficiency and returns generated on assets and capital. However, the company still faces challenges in returning value to its shareholders, as seen in the ROE figures which are yet to fully recover from previous lows.