Fluor Corporation (FLR)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 3.52% | 3.08% | 2.58% | 3.31% | 2.46% |
| Operating profit margin | 2.84% | 0.95% | 1.52% | 1.70% | 1.09% |
| Pretax margin | 3.76% | 2.04% | 1.78% | -1.03% | -1.32% |
| Net profit margin | 13.15% | 0.90% | 0.53% | -1.16% | -1.44% |
Fluor Corporation's profitability ratios have shown fluctuations over the years.
1. Gross Profit Margin:
- The gross profit margin has exhibited variability, ranging from 2.46% in 2020 to 3.52% in 2024.
- The margins seem to have an upward trend, with a dip in 2022 followed by an increase in 2023 and 2024.
- This signifies the company's ability to generate profits from its core operations after deducting the cost of goods sold.
2. Operating Profit Margin:
- The operating profit margin has also shown fluctuations, from 1.09% in 2020 to 2.84% in 2024.
- There was a significant increase in the margin from 2023 to 2024, indicating better operational efficiency.
- It represents the company's profitability from its normal business activities before interest and taxes.
3. Pretax Margin:
- The pretax margin reflects fluctuations, ranging from -1.32% in 2020 to 3.76% in 2024.
- The company managed to improve its pre-tax profitability significantly over the years.
- This margin indicates the proportion of earnings relative to total revenue before taxes are deducted.
4. Net Profit Margin:
- The net profit margin also experienced significant variability, from -1.44% in 2020 to 13.15% in 2024.
- There was a remarkable improvement in the net profit margin, showcasing a strong performance in 2024.
- This ratio reveals the percentage of profit a company retains from its revenue after all expenses are deducted, including taxes.
In conclusion, the profitability ratios of Fluor Corporation have shown fluctuations, with an overall improvement in margins from 2020 to 2024. The company has managed to enhance its profitability over the years, as evidenced by the growth in net profit margin. However, it is essential to monitor these ratios continuously to ensure sustained profitability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.06% | 2.11% | 3.06% | 2.91% | 2.33% |
| Return on assets (ROA) | 23.46% | 1.99% | 1.07% | -1.98% | -3.09% |
| Return on total capital | 16.69% | 13.40% | 8.85% | -18.46% | 6.52% |
| Return on equity (ROE) | 54.32% | 7.16% | 4.09% | -10.36% | -21.90% |
Fluor Corporation's profitability ratios for the years 2020 to 2024 depict a mixed performance.
The Operating return on assets (Operating ROA) has shown a gradual increase from 2.33% in 2020 to 5.06% in 2024, indicating improved operational efficiency in utilizing its assets to generate operating income.
However, the Return on assets (ROA) saw a negative trend in the initial years but significantly improved to 23.46% in 2024, signifying a turnaround in the company's ability to generate profits from its total assets.
Return on total capital also displayed fluctuations, with a sharp decline in 2021 but a subsequent recovery and growth thereafter, reaching 16.69% in 2024, reflecting the company's effectiveness in generating profits from both debt and equity.
Return on equity (ROE) experienced negative values in 2020 and 2021, but rebounded strongly in the following years, culminating in an impressive 54.32% in 2024. This indicates that Fluor Corporation's shareholders' equity was efficiently utilized to generate significant returns.
Overall, the increasing trend in most profitability ratios suggests improved financial performance and efficiency in utilizing resources at Fluor Corporation over the years, especially highlighted by the substantial increase in ROA and ROE towards the end of the period.