Chart Industries Inc (GTLS)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 34.32% | 25.56% | 24.93% | 23.90% | 23.35% |
| Operating profit margin | 12.89% | 9.50% | 6.81% | 6.63% | 4.08% |
| Pretax margin | 1.66% | 2.50% | 5.58% | 23.24% | 3.86% |
| Net profit margin | 1.56% | 1.51% | 4.55% | 22.17% | 3.64% |
Chart Industries Inc has shown fluctuations in its profitability ratios over the past five years. The gross profit margin has generally improved from 2019 to 2023, indicating that the company has been able to effectively manage its production costs and generate more revenue from its core operations.
The operating profit margin has also shown an increasing trend, suggesting that Chart Industries has been successful in controlling its operating expenses and improving its operational efficiency over the years.
However, there is a noticeable decline in the pretax margin from 2020 to 2023, indicating that the company's profitability before taxes has decreased in recent years. This could be attributed to various factors such as increased operating costs, changes in tax regulations, or other external economic conditions affecting the company.
The net profit margin, which reflects the final profitability of the company after all expenses including taxes, has also decreased significantly from 26.17% in 2020 to 0.60% in 2023. This sharp decline may raise concerns about the company's overall profitability and financial health in the most recent period.
In summary, while Chart Industries has shown improvements in its gross and operating profit margins, the decline in pretax and net profit margins in recent years may indicate potential challenges facing the company that require further analysis and attention.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.29% | 2.57% | 2.91% | 3.59% | 2.10% |
| Return on assets (ROA) | 0.52% | 0.41% | 1.94% | 11.99% | 1.87% |
| Return on total capital | 6.14% | 3.21% | 3.99% | 5.14% | 3.75% |
| Return on equity (ROE) | 1.70% | 0.90% | 3.66% | 19.59% | 3.78% |
Chart Industries Inc's profitability ratios show a mixed trend over the past five years.
The Operating return on assets (Operating ROA) increased from 2.57% in 2022 to 4.29% in 2023, indicating an improvement in the company's ability to generate operating profits from its assets. However, the Operating ROA is still relatively low compared to previous years.
The Return on assets (ROA) decreased significantly from 11.99% in 2020 to 0.22% in 2023, which suggests a decline in the company's overall ability to generate profits from its total assets. This decrease may indicate inefficiencies or financial challenges impacting the company's performance.
The Return on total capital also showed a mixed trend, with the ratio fluctuating over the years. While it increased to 5.94% in 2023 from 3.04% in 2022, it remains lower than the ratios observed in previous years. This ratio reflects the company's ability to generate returns for all its capital providers, including debt and equity holders.
The Return on equity (ROE) has been relatively low, with a slight increase from 0.84% in 2022 to 0.72% in 2023. This ratio indicates the company's efficiency in generating profits relative to its shareholders' equity. The declining trend in ROE over the years suggests that the company may be struggling to generate satisfactory returns for its shareholders.
In summary, while there have been improvements in some profitability ratios such as Operating ROA and Return on total capital, the overall profitability of Chart Industries Inc appears to have declined over the past few years as indicated by the decreasing trends in ROA and ROE. It may be important for the company to closely evaluate its operational efficiency and financial management to enhance profitability in the future.