ICU Medical Inc (ICUI)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 34.62% | 32.75% | 30.60% | 37.34% | 36.31% |
| Operating profit margin | 1.80% | 1.01% | -0.38% | 3.98% | 3.29% |
| Pretax margin | -2.77% | -3.47% | -5.02% | 9.36% | 7.67% |
| Net profit margin | -4.94% | -1.31% | -3.26% | 7.84% | 6.83% |
Over the five-year period from 2020 to 2024, ICU Medical Inc has shown fluctuations in its profitability ratios. The gross profit margin has demonstrated variability, starting at 36.31% in 2020 and increasing to 37.34% in 2021 before declining to 30.60% in 2022. However, it then improved to 32.75% in 2023 and further to 34.62% in 2024. This indicates the company's ability to manage its cost of goods sold and generate profit on sales.
In terms of operating profit margin, ICU Medical Inc experienced a positive trend over the period. Starting at 3.29% in 2020, it increased to 3.98% in 2021. Although it declined to -0.38% in 2022, it rebounded to 1.01% in 2023 and further to 1.80% in 2024. This suggests that the company has been effectively controlling its operating expenses to improve profitability.
The pretax margin, on the other hand, has been more volatile for ICU Medical Inc. It started at 7.67% in 2020 and rose to 9.36% in 2021 before turning negative at -5.02% in 2022. Subsequently, it further decreased to -3.47% in 2023 and slightly improved to -2.77% in 2024. This indicates challenges in managing pre-tax income relative to total revenue, possibly due to changes in tax expenses or other factors impacting profitability.
Lastly, the net profit margin also exhibited significant fluctuations for ICU Medical Inc. Starting at 6.83% in 2020, it increased to 7.84% in 2021 before turning negative at -3.26% in 2022. It then declined further to -1.31% in 2023 and -4.94% in 2024. This demonstrates the challenges the company faced in generating profits after accounting for all expenses, including taxes and interest.
Overall, while ICU Medical Inc has shown improvements in some profitability ratios such as gross profit margin and operating profit margin, it has faced challenges in maintaining consistent profitability, as reflected in its pretax and net profit margins over the period under review. Monitoring and managing these ratios will be essential for the company to sustain and enhance its financial performance in the future.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 1.02% | 0.52% | -0.19% | 2.79% | 2.37% |
| Return on assets (ROA) | -2.80% | -0.68% | -1.65% | 5.48% | 4.93% |
| Return on total capital | 2.06% | 1.15% | -3.22% | 7.68% | 6.61% |
| Return on equity (ROE) | -5.99% | -1.40% | -3.55% | 6.38% | 5.78% |
ICU Medical Inc's profitability ratios show fluctuations over the years.
1. Operating Return on Assets (Operating ROA):
- The Operating ROA has improved from 2.37% in 2020 to 2.79% in 2021 before declining to -0.19% in 2022. It then showed a slight recovery to 0.52% in 2023 and further improvement to 1.02% in 2024. The variation in Operating ROA indicates the company's ability to generate earnings from its operational assets.
2. Return on Assets (ROA):
- The ROA increased from 4.93% in 2020 to 5.48% in 2021 before experiencing a significant decline to -1.65% in 2022. This negative trend continued with further decreases in 2023 (-0.68%) and 2024 (-2.8%). The negative ROA values suggest that ICU Medical Inc is facing challenges in generating profits from its total assets.
3. Return on Total Capital:
- The Return on Total Capital rose from 6.61% in 2020 to 7.68% in 2021, then dropped sharply to -3.22% in 2022. However, there was a recovery in 2023 (1.15%) and 2024 (2.06%). This ratio indicates how efficiently the company is utilizing its total capital to generate profits.
4. Return on Equity (ROE):
- The ROE started at 5.78% in 2020, increased to 6.38% in 2021, then declined to -3.55% in 2022. The negative trend continued in 2023 (-1.40%) and 2024 (-5.99%). The declining ROE values suggest that the company's shareholders' returns are diminishing over time.
In conclusion, while there have been fluctuations in ICU Medical Inc's profitability ratios over the years, the negative trends in ROA, Return on Total Capital, and ROE highlight potential areas of concern for the company's overall profitability and financial performance.