FormFactor Inc (FORM)
Profitability ratios
Return on sales
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 35.32% | 35.62% | 34.17% | 36.71% | 39.71% | 43.32% | 45.09% | 43.68% | 41.99% | 40.81% | 41.00% | 41.32% | 41.53% | 42.21% | 41.34% | 40.94% | 40.44% | 39.91% | 39.92% | 40.29% |
| Operating profit margin | 11.30% | -2.18% | -1.96% | 2.91% | 7.37% | 13.06% | 15.33% | 14.07% | 12.75% | 11.43% | 11.45% | 12.23% | 12.08% | 12.86% | 11.62% | 9.81% | 8.46% | 6.87% | 6.95% | 7.42% |
| Pretax margin | 12.19% | -1.25% | -1.17% | 3.48% | 7.76% | 13.43% | 15.50% | 14.12% | 12.81% | 11.52% | 11.59% | 12.42% | 12.28% | 13.08% | 11.88% | 10.10% | 8.69% | 6.97% | 6.90% | 7.22% |
| Net profit margin | 11.25% | -1.09% | -1.08% | 3.10% | 6.81% | 11.50% | 13.40% | 12.09% | 10.92% | 10.15% | 10.63% | 11.44% | 11.33% | 11.55% | 9.94% | 8.07% | 6.70% | 19.26% | 19.37% | 19.87% |
FormFactor Inc's profitability ratios have shown some fluctuations over the analyzed periods. The gross profit margin, which reflects the company's ability to generate profit from its core business activities, has been trending downwards from 40.29% in Dec 2019 to 35.32% in Dec 2023. This suggests a potential decrease in the efficiency of FormFactor's production and cost management.
The operating profit margin, indicating the proportion of revenue that translates into operating income, has also experienced fluctuations, with a significant decline from 15.33% in Jun 2022 to -2.18% in Sep 2023. This negative figure in Sep 2023 indicates that the company's operating expenses exceeded its operating income, raising concerns about its operational efficiency.
Similarly, the pretax margin has varied over the periods, reaching its lowest point of -1.25% in Sep 2023. This metric highlights the company's ability to generate profit before accounting for income taxes and signifies the impact of operating and non-operating activities on FormFactor's overall profitability.
The net profit margin, representing the percentage of revenue that translates into net income, has shown a downward trend from 19.87% in Jun 2019 to 11.25% in Dec 2023. The substantial decrease in Sep 2019 and Dec 2019 suggests some challenges in controlling expenses relative to revenue during those periods, although the recent positive performance indicates a potential recovery.
In conclusion, while FormFactor Inc has demonstrated periods of healthy profitability, the fluctuations in its profitability ratios raise concerns about the company's efficiency in managing costs and generating sustainable profits over time. Further analysis and investigations into the underlying factors driving these fluctuations may be necessary to assess the company's overall financial health and performance accurately.
Return on investment
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.48% | -1.40% | -1.28% | 2.04% | 5.45% | 10.04% | 11.69% | 10.37% | 9.61% | 8.65% | 8.69% | 8.98% | 8.70% | 9.47% | 8.37% | 7.12% | 5.91% | 4.76% | 4.99% | 5.30% |
| Return on assets (ROA) | 7.44% | -0.70% | -0.70% | 2.18% | 5.03% | 8.84% | 10.22% | 8.91% | 8.22% | 7.68% | 8.06% | 8.39% | 8.15% | 8.51% | 7.16% | 5.86% | 4.68% | 13.33% | 13.89% | 14.19% |
| Return on total capital | 8.97% | -1.62% | -1.27% | 2.87% | 7.10% | 12.90% | 14.65% | 12.83% | 11.92% | 10.99% | 11.08% | 11.41% | 11.19% | 12.04% | 10.69% | 9.40% | 8.07% | 6.59% | 6.49% | 6.81% |
| Return on equity (ROE) | 9.07% | -0.85% | -0.86% | 2.69% | 6.28% | 11.18% | 12.83% | 11.12% | 10.29% | 9.83% | 10.36% | 10.73% | 10.55% | 10.91% | 9.16% | 7.47% | 6.14% | 17.22% | 17.42% | 18.11% |
FormFactor Inc's profitability ratios show variations over the past few quarters. The Operating ROA, which measures the company's operating income relative to its total assets, averaged around 7-8% in recent quarters, with a decline in the most recent quarter from 10.04% to 7.48%. This ratio indicates how efficiently the company generates profits from its assets.
The ROA, a broader measure of profitability, also experienced fluctuations, ranging from negative figures to double-digit percentages. It averaged around 7-8% in recent quarters, signaling the company's ability to generate earnings from its assets, including those financed by debt and equity.
The Return on Total Capital, comparing the company's earnings before interest and taxes (EBIT) and its total capital, exhibited similar trends to ROA, with values around 10-14% in recent quarters. This ratio provides insights into the efficiency of the company in generating profits from its total invested capital.
The Return on Equity (ROE), reflecting the return on shareholders' equity, showed fluctuations ranging from negative values to double-digit percentages. The ROE averaged around 9-11% in recent quarters, indicating the company's ability to generate returns for its shareholders from the equity they have invested.
Overall, FormFactor Inc's profitability ratios demonstrate some variability in recent quarters, suggesting fluctuations in how efficiently the company is utilizing its assets and generating profits for its investors. Monitoring these ratios over time can help assess the company's financial performance and identify areas for improvement.