Flowserve Corporation (FLS)
Profitability ratios
Return on sales
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 31.91% | 31.30% | 30.54% | 29.92% | 29.55% | 29.39% | 29.06% | 28.65% | 27.50% | 27.64% | 28.09% | 28.77% | 29.64% | 29.89% | 30.28% | 29.76% | 29.87% | 30.64% | 31.32% | 32.09% |
| Operating profit margin | 10.54% | 10.24% | 9.59% | 8.90% | 7.72% | 6.68% | 6.64% | 6.03% | 4.72% | 5.71% | 5.82% | 6.13% | 7.65% | 7.79% | 8.48% | 7.63% | 6.73% | 6.90% | 7.34% | 8.62% |
| Pretax margin | 8.47% | 7.75% | 6.91% | 6.49% | 5.18% | 5.17% | 5.49% | 5.28% | 4.27% | 3.16% | 3.14% | 2.91% | 3.77% | 4.83% | 5.59% | 4.63% | 5.03% | 5.59% | 6.10% | 7.69% |
| Net profit margin | 6.20% | 5.90% | 5.67% | 5.29% | 4.32% | 5.85% | 5.98% | 6.13% | 5.28% | 2.47% | 2.80% | 2.80% | 3.56% | 4.61% | 4.70% | 3.68% | 3.25% | 3.51% | 3.54% | 4.74% |
Flowserve Corporation's profitability ratios have shown some fluctuations over the past few years.
1. Gross Profit Margin: This ratio, measuring the percentage of revenue that exceeds the cost of goods sold, has gradually declined from 32.09% on March 31, 2020, to 31.91% on December 31, 2024. The trend indicates a slight decrease in the company's ability to control production costs and achieve profitability on each dollar of sales.
2. Operating Profit Margin: Flowserve's operating profit margin, which indicates the percentage of revenue that translates into operating income, experienced fluctuations but improved from 6.73% on December 31, 2020, to 10.54% on December 31, 2024. This suggests that the company's operational efficiency and cost management have strengthened over the years.
3. Pretax Margin: The pretax margin, showing the proportion of revenue retained as income before taxes, fluctuated over the period but generally increased from 5.03% on December 31, 2020, to 8.47% on December 31, 2024. This indicates an improvement in the company's ability to generate profit before tax expenses.
4. Net Profit Margin: Flowserve's net profit margin, representing the percentage of revenue that remains as net income, varied but generally improved from 3.25% on December 31, 2020, to 6.20% on December 31, 2024. This indicates an enhancement in the company's ability to generate profit after considering all expenses and taxes.
Overall, while the company faced some challenges in maintaining its gross profit margin, its operating profit margin, pretax margin, and net profit margin showed positive trends, suggesting improved operational efficiency and profitability over the years.
Return on investment
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.73% | 8.82% | 8.37% | 7.65% | 6.53% | 5.64% | 5.36% | 4.67% | 3.56% | 4.43% | 4.43% | 4.57% | 5.70% | 5.02% | 6.45% | 5.86% | 4.72% | 5.08% | 6.00% | 7.15% |
| Return on assets (ROA) | 5.14% | 5.08% | 4.95% | 4.55% | 3.66% | 4.94% | 4.83% | 4.74% | 3.98% | 1.91% | 2.13% | 2.09% | 2.65% | 2.97% | 3.58% | 2.82% | 2.28% | 2.59% | 2.89% | 3.93% |
| Return on total capital | 23.98% | 23.24% | 22.21% | 20.06% | 16.77% | 14.94% | 14.61% | 13.60% | 10.99% | 12.22% | 12.21% | 12.32% | 15.82% | 18.20% | 20.48% | 23.05% | 21.08% | 20.95% | 21.92% | 21.00% |
| Return on equity (ROE) | 14.08% | 13.04% | 12.97% | 11.99% | 9.65% | 13.10% | 12.61% | 12.53% | 10.46% | 5.20% | 5.67% | 5.59% | 6.98% | 9.44% | 9.90% | 7.93% | 6.99% | 8.00% | 8.28% | 11.28% |
Flowserve Corporation's profitability ratios show fluctuations over the periods analyzed.
1. Operating return on assets (Operating ROA) declined from 7.15% in March 2020 to 3.56% in December 2022, then increased to 8.73% by December 2024. This ratio indicates the company's ability to generate profits from its operations relative to its total assets.
2. Return on assets (ROA) also followed a fluctuating trend, ranging from 1.91% in September 2022 to 5.14% in December 2024. ROA measures how efficiently the company is utilizing its assets to generate profits.
3. Return on total capital decreased from 21.92% in June 2020 to 10.99% by December 2022, and then improved to 23.98% by December 2024. This ratio reflects the company's ability to generate returns for both equity and debt holders.
4. Return on equity (ROE) experienced ups and downs, with values ranging from 5.20% in September 2022 to 14.08% in December 2024. ROE indicates the profitability of the company from the perspective of its shareholders.
Overall, while there were fluctuations in profitability ratios, there was an improvement towards the end of the period, suggesting potential enhancements in operational efficiency and financial performance for Flowserve Corporation. It is essential for the company to sustain this positive momentum to ensure long-term profitability and shareholder value.