IDEXX Laboratories Inc (IDXX)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 59.82% | 59.52% | 58.76% | 58.04% | 56.73% |
| Operating profit margin | 29.97% | 26.69% | 28.99% | 25.66% | 22.97% |
| Pretax margin | 28.99% | 25.54% | 28.07% | 24.44% | 21.69% |
| Net profit margin | 23.08% | 20.17% | 23.17% | 21.49% | 17.77% |
Idexx Laboratories, Inc. has shown consistent improvement in its profitability ratios over the past five years. The gross profit margin has gradually increased from 56.73% in 2019 to 59.82% in 2023, indicating the company's ability to effectively manage its cost of goods sold and generate profits from its core operations.
The operating profit margin has also demonstrated positive growth, reaching 29.97% in 2023 from 22.97% in 2019. This indicates that Idexx Laboratories has been successful in controlling its operating expenses and maximizing operating income relative to its revenue.
Furthermore, the pretax margin has shown steady improvement, increasing from 21.70% in 2019 to 28.99% in 2023. This suggests that the company has been efficient in managing its pre-tax income and controlling non-operating expenses over the years.
Lastly, the net profit margin, which reflects the company's bottom-line profitability, has consistently increased from 17.77% in 2019 to 23.08% in 2023. This indicates that Idexx Laboratories has been effective in controlling its interest expenses, taxes, and other costs to generate higher net income relative to its revenue.
Overall, the increasing trend in all profitability ratios demonstrates a positive financial performance for Idexx Laboratories, Inc., showcasing its ability to drive profitability and deliver value to its shareholders.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 33.66% | 32.72% | 38.24% | 30.27% | 30.17% |
| Return on assets (ROA) | 25.92% | 24.72% | 30.56% | 25.35% | 23.34% |
| Return on total capital | 52.33% | 69.05% | 63.64% | 46.61% | 63.12% |
| Return on equity (ROE) | 56.92% | 111.56% | 107.95% | 92.04% | 241.01% |
Idexx Laboratories, Inc. has demonstrated strong and consistent profitability over the past five years based on its key profitability ratios.
1. Operating return on assets (Operating ROA): This ratio indicates the company's ability to generate operating income from its assets. Idexx's Operating ROA has remained relatively stable over the years, ranging from 30.17% in 2019 to 38.24% in 2021, and reaching 33.66% in 2023. This reflects the company's effective management of its assets to generate operating profits.
2. Return on assets (ROA): The ROA measures the company's overall efficiency in generating profits from its total assets. Idexx's ROA has consistently been above 20% in the past five years, indicating its ability to generate strong returns relative to its asset base. The ROA increased from 23.34% in 2019 to 30.56% in 2021, and stood at 25.92% in 2023.
3. Return on total capital: This ratio reflects the company's ability to generate returns for both equity and debt investors. Idexx's return on total capital has been healthy, ranging from 45.08% in 2020 to 57.76% in 2021. The company has effectively utilized its capital to generate returns for its investors, with the ratio being 45.10% in 2023.
4. Return on equity (ROE): The ROE measures the company's profitability in relation to shareholders' equity. Idexx's ROE has varied over the years, from 241.01% in 2019 to 56.92% in 2023. The significant fluctuation in ROE may be attributed to changes in the company's capital structure and profitability performance.
Overall, Idexx Laboratories, Inc. has shown consistent profitability and efficient management of its assets and capital, as evidenced by its strong performance in various profitability ratios over the past five years.