Graco Inc (GGG)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 52.88% | 49.33% | 52.02% | 51.81% | 52.23% |
| Operating profit margin | 29.46% | 26.72% | 26.73% | 23.74% | 25.79% |
| Pretax margin | 27.73% | 26.39% | 25.58% | 22.70% | 24.66% |
| Net profit margin | 23.07% | 21.49% | 22.13% | 20.03% | 20.89% |
Graco Inc has shown consistent profitability over the past five years, as reflected in its profitability ratios. The gross profit margin has been relatively stable, ranging from 49.33% to 52.88%, indicating the ability of the company to effectively manage its production costs and generate profits from its sales.
The operating profit margin has shown improvement over the years, increasing from 23.74% in 2020 to 29.46% in 2023. This indicates that Graco Inc has been able to control its operating expenses and enhance operational efficiency, resulting in higher profitability at the operating level.
Similarly, the pretax margin and net profit margin have also shown a positive trend over the years, with both metrics increasing steadily. The pretax margin increased from 22.70% in 2020 to 27.73% in 2023, while the net profit margin improved from 20.03% in 2020 to 23.07% in 2023. This suggests that the company has been successful in managing its overall expenses and taxes, resulting in higher profitability at the pre-tax and net profit levels.
Overall, Graco Inc has demonstrated strong profitability performance, with an upward trend in its profitability ratios, reflecting effective cost management and revenue generation strategies.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 23.76% | 23.48% | 21.75% | 19.70% | 25.08% |
| Return on assets (ROA) | 18.61% | 18.89% | 18.00% | 16.62% | 20.32% |
| Return on total capital | 27.60% | 29.75% | 29.07% | 26.91% | 35.23% |
| Return on equity (ROE) | 22.77% | 24.77% | 25.73% | 25.74% | 33.55% |
Graco Inc has demonstrated consistent profitability over the past five years, as evidenced by its profitability ratios. The company's Operating ROA has shown an increasing trend from 19.70% in 2020 to 23.76% in 2023, indicating that it is generating more operating income per dollar of assets employed in its operations. This signifies the company's efficiency in utilizing its assets to generate operating profits.
Similarly, the overall ROA has been relatively stable, ranging from 16.62% in 2020 to 18.89% in 2022, before slightly declining to 18.61% in 2023. This indicates that Graco Inc has been consistently generating profits relative to its total assets over the years.
The Return on Total Capital has also displayed a positive trend, increasing from 26.91% in 2020 to 29.75% in 2022, before experiencing a slight decrease to 27.60% in 2023. This ratio reflects the company's ability to generate profits from its total invested capital, including both equity and debt.
Lastly, the Return on Equity (ROE) has shown a similar trend to the Return on Total Capital, with a slight decline from 25.74% in 2019 to 22.77% in 2023. This indicates that Graco Inc has been effectively utilizing shareholder equity to generate returns for its investors over the years, although there has been a slight decrease in ROE in recent years.
Overall, Graco Inc's profitability ratios demonstrate the company's solid performance in generating profits both from its operations and overall capital base, albeit with some fluctuations in recent years.