FormFactor Inc (FORM)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 35.26% | 39.74% | 42.08% | 41.53% | 40.48% |
| Operating profit margin | 11.28% | 7.37% | 12.78% | 12.09% | 8.47% |
| Pretax margin | 12.17% | 7.77% | 12.84% | 12.29% | 8.70% |
| Net profit margin | 11.23% | 6.81% | 10.94% | 11.33% | 6.71% |
FormFactor Inc's profitability ratios have shown fluctuations over the past five years. The gross profit margin has declined steadily from 42.08% in 2021 to 35.26% in 2023. This indicates a decrease in the percentage of revenue remaining after deducting the cost of goods sold.
The operating profit margin has exhibited variability, with a significant increase in 2023 to 11.28% compared to 7.37% in 2022. This reflects the company's ability to control operating expenses more effectively to generate profit from its core business activities.
The pretax margin has also shown fluctuations, with a notable jump to 12.17% in 2023 from 7.77% in 2022. This indicates an improvement in the company's ability to generate profit before accounting for taxes.
The net profit margin, representing the percentage of revenue that translates into net income, has also experienced fluctuations. It increased to 11.23% in 2023 from 6.81% in 2022. This suggests that FormFactor Inc has been able to improve its bottom line profitability by managing costs and expenses more efficiently.
In summary, FormFactor Inc's profitability ratios demonstrate a mixed performance over the analyzed period, with improvements in operating profit margin, pretax margin, and net profit margin in 2023 compared to previous years. Continued monitoring of these ratios will be essential to assess the company's financial health and sustainability.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.48% | 5.45% | 9.61% | 8.70% | 5.91% |
| Return on assets (ROA) | 7.44% | 5.03% | 8.22% | 8.15% | 4.68% |
| Return on total capital | 9.73% | 7.10% | 11.92% | 11.19% | 8.07% |
| Return on equity (ROE) | 9.07% | 6.28% | 10.29% | 10.55% | 6.14% |
FormFactor Inc's profitability ratios reflect its ability to generate returns for its stakeholders over the past five years.
- Operating return on assets (Operating ROA) has shown a moderate increase from 5.91% in 2019 to 7.48% in 2023, indicating a positive trend in the company's operational efficiency in utilizing its assets to generate operating profits.
- Return on assets (ROA) has also been on an upward trajectory, reaching 7.44% in 2023 from 4.68% in 2019, demonstrating an improvement in the company's overall profitability in relation to its total assets.
- Return on total capital has experienced growth, climbing to 9.73% in 2023 from 8.07% in 2019, suggesting that FormFactor Inc is effectively generating returns on both equity and debt capital invested in the business.
- Return on equity (ROE) has exhibited a similar upward trend, with an increase from 6.14% in 2019 to 9.07% in 2023, signifying enhanced profitability from the shareholder's perspective.
Overall, the profitability ratios of FormFactor Inc have demonstrated positive momentum over the analyzed period, indicating the company's successful management of assets, efficient operations, and ability to provide returns to its investors and creditors.