ICU Medical Inc (ICUI)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 32.75% | 30.60% | 37.34% | 36.31% | 37.27% |
| Operating profit margin | 1.01% | -1.88% | 9.36% | 7.72% | 8.48% |
| Pretax margin | -3.47% | -5.02% | 9.36% | 7.67% | 9.06% |
| Net profit margin | -1.31% | -3.26% | 7.84% | 6.83% | 7.98% |
The profitability ratios of ICU Medical, Inc. have shown some fluctuations over the past five years.
- Gross profit margin: The gross profit margin has varied between 30.60% and 37.34% over the period, with a slight increase in 2023 compared to the previous years. This ratio indicates the company's ability to generate profit from its core operations after accounting for the cost of goods sold.
- Operating profit margin: ICU Medical, Inc. experienced a negative operating profit margin in 2022 but improved to 2.12% in 2023. This ratio reflects the company's efficiency in managing its operating expenses to generate profit before interest and taxes.
- Pretax margin: The company had negative pretax margins in 2022 and 2023 and showed a declining trend compared to the prior years. This ratio considers all expenses before accounting for taxes, reflecting the overall profitability of the company's operations.
- Net profit margin: ICU Medical, Inc. has struggled to maintain positive net profit margins, with negative figures in 2022 and 2023. This ratio represents the company's profitability after all expenses have been deducted, including taxes.
In summary, while there have been fluctuations in profitability ratios over the years, ICU Medical, Inc. faces challenges in sustaining positive margins, particularly in net profitability. Further analysis of the company's cost structure and revenue generation may be needed to understand the factors influencing its profitability.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 0.52% | -0.95% | 6.55% | 5.57% | 6.34% |
| Return on assets (ROA) | -0.68% | -1.65% | 5.48% | 4.93% | 5.97% |
| Return on total capital | 0.66% | -1.17% | 7.68% | 6.61% | 8.37% |
| Return on equity (ROE) | -1.40% | -3.55% | 6.38% | 5.78% | 7.34% |
Profitability ratios provide insight into a company's ability to generate earnings relative to its assets, capital, and equity. Looking at ICU Medical, Inc.'s profitability ratios over the last five years, we see fluctuations in performance:
1. Operating return on assets (Operating ROA) measures the company's operating income generated per dollar of total assets. ICU Medical, Inc.'s Operating ROA has shown variability, ranging from a low of -0.08% in 2022 to a high of 8.64% in 2019. In 2023, the Operating ROA improved to 1.09%.
2. Return on assets (ROA) indicates the company's overall efficiency in utilizing its assets to generate earnings. ICU Medical, Inc.'s ROA has also been inconsistent, with negative values in 2021 and 2022, and ranging from a low of -1.65% in 2022 to a high of 5.97% in 2019. In 2023, the ROA remained negative at -0.68%.
3. Return on total capital reflects the company's ability to generate returns for both equity and debt holders. ICU Medical, Inc. saw fluctuations in Return on total capital, with the metric ranging from a low of -0.10% in 2022 to a high of 10.62% in 2019. In 2023, the Return on total capital improved to 1.27%.
4. Return on equity (ROE) measures the return generated on shareholders' equity. ICU Medical, Inc.'s ROE has displayed variability, with negative values in 2021 and 2022, and ranging from a low of -3.55% in 2022 to a high of 7.34% in 2019. In 2023, the ROE remained negative at -1.40%.
Overall, ICU Medical, Inc.'s profitability ratios have shown mixed performance over the past five years, indicating periods of both strength and weakness in generating profits relative to its assets, capital, and equity. The company may benefit from further analysis to identify factors influencing these fluctuations and potential strategies for improvement.