GE HealthCare Technologies Inc. (GEHC)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | |
|---|---|---|---|
| Gross profit margin | 42.94% | 41.80% | 39.45% |
| Operating profit margin | 13.74% | 12.85% | 13.86% |
| Pretax margin | 13.21% | 12.19% | 13.62% |
| Net profit margin | 10.43% | 8.27% | 10.53% |
Based on the provided data, GE HealthCare Technologies Inc.'s profitability ratios show improving trends over the three-year period from December 31, 2022, to December 31, 2024.
1. Gross Profit Margin:
- The gross profit margin increased from 39.45% in 2022 to 42.94% in 2024, indicating the company's ability to control production costs and increase profitability on sales.
2. Operating Profit Margin:
- The operating profit margin fluctuated slightly, from 13.86% in 2022 to 13.74% in 2024. This margin measures how efficiently the company managed its operating expenses relative to its revenue.
3. Pretax Margin:
- The pretax margin decreased from 13.62% in 2022 to 13.21% in 2024. This ratio indicates the company's ability to generate profits before accounting for taxes, with a lower ratio possibly reflecting higher tax expenses or other costs.
4. Net Profit Margin:
- The net profit margin increased from 10.53% in 2022 to 10.43% in 2024, after a dip in 2023 to 8.27%. This ratio reflects the company's overall profitability after accounting for all expenses, including taxes, interest, and other costs.
Overall, the improvements in gross profit margin and net profit margin suggest that GE HealthCare Technologies Inc. was able to enhance its operational efficiency and profitability over the period, despite some fluctuations in the operating profit margin and pretax margin.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | |
|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.93% | 7.50% | 9.16% |
| Return on assets (ROA) | 6.02% | 4.83% | 6.96% |
| Return on total capital | 16.51% | 15.64% | 14.34% |
| Return on equity (ROE) | 23.60% | 21.98% | 20.48% |
The profitability ratios of GE HealthCare Technologies Inc. show a positive trend over the three years analyzed.
1. Operating Return on Assets (Operating ROA): The Operating ROA decreased slightly from 9.16% in 2022 to 7.50% in 2023, then recovered to 7.93% in 2024. This ratio indicates how efficiently the company is generating operating profits relative to its total assets.
2. Return on Assets (ROA): The ROA also followed a similar pattern, starting at 6.96% in 2022, declining to 4.83% in 2023, and then increasing to 6.02% in 2024. This ratio reflects the company's ability to generate profits from its total assets.
3. Return on Total Capital: The Return on Total Capital showed consistent growth, reaching 16.51% in 2024 from 14.34% in 2022. This ratio measures the overall profitability of the company's total capital, including debt and equity.
4. Return on Equity (ROE): The ROE demonstrated a steady increase over the three years, indicating efficient utilization of shareholders' equity. The ROE rose from 20.48% in 2022 to 23.60% in 2024.
Overall, GE HealthCare Technologies Inc. maintained profitability and efficiency in generating returns for its assets, capital, and equity over the period analyzed.