Flowserve Corporation (FLS)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 29.85% | 27.61% | 30.76% | 30.56% | 32.98% |
| Operating profit margin | 7.80% | 5.48% | 7.94% | 6.85% | 9.89% |
| Pretax margin | 4.80% | 4.03% | 3.62% | 5.25% | 8.04% |
| Net profit margin | 4.37% | 5.24% | 3.69% | 3.57% | 6.11% |
Flowserve Corp.'s profitability ratios exhibit fluctuating trends over the past five years. The gross profit margin has generally declined from 32.84% in 2019 to 29.55% in 2023, indicating a decrease in the company's ability to generate profits after deducting the cost of goods sold. Similarly, the operating profit margin has varied, with a significant drop in 2020 followed by a gradual increase to 7.31% in 2023, reflecting operational efficiency improvements.
The pretax margin shows inconsistent performance, reaching its highest point in 2019 at 8.67% before declining to 3.77% in 2021 and then recovering slightly to 5.18% in 2023. This metric signals the company's ability to generate profits before accounting for taxes. The net profit margin also displays fluctuations, with a notable decrease from 6.43% in 2019 to 4.32% in 2023, indicating a decline in the company's overall profitability after considering all expenses.
Overall, Flowserve Corp.'s profitability ratios suggest a mixed performance in recent years, influenced by factors such as changing cost structures, operational efficiency enhancements, and varying tax implications. Analysis of these ratios provides insights into the company's financial health and its ability to generate sustainable profits.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.53% | 4.12% | 5.70% | 4.71% | 7.83% |
| Return on assets (ROA) | 3.66% | 3.94% | 2.65% | 2.45% | 4.84% |
| Return on total capital | 8.77% | 6.27% | 5.90% | 7.19% | 11.86% |
| Return on equity (ROE) | 9.65% | 10.34% | 6.98% | 7.53% | 13.67% |
Flowserve Corp.'s profitability ratios show varying trends over the past five years.
- Operating return on assets (Operating ROA) has shown inconsistency, improving from 3.73% in 2022 to 6.18% in 2023, but fluctuating in the intervening years.
- Return on assets (ROA) has also been volatile, with a peak of 5.16% in 2019 but declining to 3.66% in 2023.
- Return on total capital has displayed a similar pattern of inconsistency, with a recent high of 10.52% in 2023 but lower than the peak of 12.82% in 2019.
- Return on equity (ROE) has fluctuated over the years, reaching a low of 6.71% in 2023 compared to the high of 14.17% in 2019.
Overall, Flowserve Corp.'s profitability ratios indicate mixed performance with fluctuations in efficiency and profitability over the five-year period. Further analysis would be required to identify the underlying factors influencing these trends.