Ichor Holdings Ltd (ICHR)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 12.17% | 12.75% | 16.55% | 16.18% | 13.66% |
| Operating profit margin | -0.90% | -1.34% | 6.70% | 7.39% | 4.54% |
| Pretax margin | -2.13% | -3.83% | 5.88% | 6.72% | 3.53% |
| Net profit margin | -2.45% | -5.30% | 5.69% | 6.46% | 3.64% |
Ichor Holdings Ltd has shown varying levels of profitability over the years. The gross profit margin has generally increased from 13.66% in 2020 to 16.55% in 2022 but then decreased to 12.17% in 2024. This indicates fluctuations in the company's ability to generate profits from its core operations after accounting for the cost of goods sold.
In terms of operating profit margin, the company saw an improvement from 4.54% in 2020 to 7.39% in 2021, but then experienced a decline to negative figures in 2023 and 2024. This suggests that the company's operating expenses have been impacting its profitability negatively in recent years.
The pretax margin also followed a similar pattern, increasing from 3.53% in 2020 to 6.72% in 2021 before experiencing negative margins in 2023 and 2024. This indicates challenges in generating profits before accounting for taxes over the last two years.
Lastly, the net profit margin has shown a similar trend, improving from 3.64% in 2020 to 6.46% in 2021, but then declining to negative figures in 2023 and 2024. This suggests that after accounting for all expenses, including taxes, the company's bottom line profitability has been impacted negatively in the recent years.
In conclusion, while Ichor Holdings Ltd exhibited improvements in profitability margins in the earlier years, there have been significant challenges in maintaining profitability in the most recent financial periods, as evidenced by decreasing margins and even negative profitability indicators in 2023 and 2024.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -0.77% | -1.16% | 7.92% | 7.94% | 5.37% |
| Return on assets (ROA) | -2.09% | -4.58% | 6.72% | 6.94% | 4.30% |
| Return on total capital | -1.26% | -1.93% | 14.70% | 16.02% | 9.96% |
| Return on equity (ROE) | -2.98% | -7.61% | 12.39% | 14.16% | 8.08% |
Ichor Holdings Ltd has shown varying trends in its profitability ratios over the years.
- Operating Return on Assets (Operating ROA):
- The Operating ROA increased from 5.37% in 2020 to 7.94% in 2021, remaining relatively stable at 7.92% in 2022 before declining to -1.16% in 2023 and further to -0.77% in 2024. The negative values in the last two years indicate that the company's operating income might not be effectively generating profits relative to its assets.
- Return on Assets (ROA):
- The ROA also exhibited a similar trend, rising from 4.30% in 2020 to 6.94% in 2021 and 6.72% in 2022. However, it declined to -4.58% in 2023 and further to -2.09% in 2024, suggesting a significant decrease in the company's ability to generate profit from its total assets.
- Return on Total Capital:
- The Return on Total Capital saw an increase from 9.96% in 2020 to 16.02% in 2021, followed by a slight decrease to 14.70% in 2022. However, it turned negative in the subsequent years, indicating that the company's ability to generate profit from its total capital investment deteriorated significantly.
- Return on Equity (ROE):
- The ROE followed a similar pattern, improving from 8.08% in 2020 to 14.16% in 2021 and 12.39% in 2022. However, it then declined to -7.61% in 2023 and further to -2.98% in 2024, indicating a negative return to the equity holders in those years.
Overall, the declining profitability ratios in the later years suggest that Ichor Holdings Ltd faced challenges in generating returns relative to its assets, total capital, and equity, which could be a point of concern for investors and stakeholders. Further analysis and investigation into the company's operational and financial performance would be necessary to understand the reasons behind these deteriorating profitability ratios.