FormFactor Inc (FORM)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 40.33% | 39.00% | 39.58% | 41.94% | 41.51% |
| Operating profit margin | 8.48% | 12.48% | 7.34% | 12.74% | 12.08% |
| Pretax margin | 10.40% | 13.46% | 7.74% | 12.80% | 12.28% |
| Net profit margin | 9.12% | 12.42% | 6.78% | 10.90% | 11.32% |
FormFactor Inc's profitability ratios paint a picture of the company's ability to generate profits relative to its revenue.
1. Gross Profit Margin: The company's gross profit margin has been relatively stable over the years, ranging from 39.58% in 2022 to 41.94% in 2021. The slight decline in 2023 and subsequent increase in 2024 indicate efficient management of production costs.
2. Operating Profit Margin: FormFactor Inc's operating profit margin has shown some fluctuations, with a noticeable drop in 2022 to 7.34% before recovering to 8.48% in 2024. This suggests that the company has faced some challenges in managing its operating expenses efficiently.
3. Pre-tax Margin: The pretax margin has also varied over the years, reaching a low of 7.74% in 2022 and peaking at 13.46% in 2023. This metric reflects the company's ability to control costs and generate profits before taking into account taxes.
4. Net Profit Margin: FormFactor Inc's net profit margin has similarly fluctuated, with a notable decrease in 2022 to 6.78% before rebounding to 9.12% in 2024. This metric indicates the company's bottom-line profitability after all expenses, including taxes, have been accounted for.
In summary, while FormFactor Inc has demonstrated the ability to maintain relatively healthy profitability margins over the years, there have been some fluctuations that suggest the need for continued focus on cost management and operational efficiency to sustain and improve profitability in the future.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.65% | 7.48% | 5.45% | 9.61% | 8.70% |
| Return on assets (ROA) | 6.07% | 7.44% | 5.03% | 8.22% | 8.15% |
| Return on total capital | 8.42% | 9.11% | 7.23% | 12.15% | 11.56% |
| Return on equity (ROE) | 7.35% | 9.07% | 6.28% | 10.29% | 10.55% |
FormFactor Inc's profitability ratios show fluctuating performance over the years analyzed.
1. Operating return on assets (Operating ROA) increased from 8.70% in December 2020 to 9.61% in December 2021, indicating effective utilization of assets. However, there was a decline in 2022 to 5.45%, followed by a slight improvement to 7.48% in 2023 before falling again to 5.65% in 2024.
2. Return on assets (ROA) remained relatively stable, ranging from 5.03% in December 2022 to 8.22% in December 2021, but slightly decreased to 6.07% by December 2024.
3. Return on total capital shows a gradual decrease from 12.15% in December 2021 to 8.42% in December 2024. These figures indicate a diminishing return on the capital employed by the company over the analyzed periods.
4. Return on equity (ROE) follows a similar trend, declining from 10.55% in December 2020 to 7.35% in December 2024. This suggests that FormFactor Inc's ability to generate profits from shareholders' equity has weakened over the years.
Overall, the analysis of profitability ratios highlights fluctuations in FormFactor Inc's performance, indicating the need for the company to focus on improving operational efficiency and maximizing returns on assets and capital to enhance shareholder value.