IDEXX Laboratories Inc (IDXX)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 61.04% | 59.82% | 59.52% | 58.76% | 58.04% |
| Operating profit margin | 28.95% | 29.97% | 26.69% | 28.99% | 25.66% |
| Pretax margin | 28.48% | 28.99% | 25.54% | 28.07% | 24.46% |
| Net profit margin | 22.78% | 23.08% | 20.17% | 23.17% | 21.49% |
IDEXX Laboratories Inc has shown steady improvement in its profitability ratios over the years based on the provided data. The gross profit margin has increased from 58.04% in December 2020 to 61.04% in December 2024, indicating the company's ability to efficiently manage its production costs while generating higher revenues.
The operating profit margin also demonstrates positive growth, reaching a peak of 29.97% in December 2023, before slightly dropping to 28.95% in December 2024. This suggests that IDEXX Laboratories Inc effectively controls its operating expenses to generate profits from its core business operations.
The pretax margin has steadily increased from 24.46% in December 2020 to 28.48% in December 2024, reflecting the company's ability to generate income before accounting for taxes. This improvement signifies operational efficiency and effective financial management by IDEXX Laboratories Inc.
Lastly, the net profit margin, which represents the percentage of revenue that translates into net income, has also shown positive trends. It increased from 21.49% in December 2020 to 23.08% in December 2023, remaining relatively stable at 22.78% in December 2024. This indicates that the company is effectively managing its expenses and maximizing profitability for its shareholders.
Overall, IDEXX Laboratories Inc's profitability ratios depict a strong and consistent performance over the years, showcasing the company's ability to maintain and enhance its profitability levels.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 34.26% | 33.66% | 32.72% | 38.24% | 30.27% |
| Return on assets (ROA) | 26.96% | 25.92% | 24.72% | 30.56% | 25.35% |
| Return on total capital | 71.52% | 73.90% | 147.64% | 135.08% | 109.88% |
| Return on equity (ROE) | 55.65% | 56.92% | 111.56% | 107.95% | 92.04% |
Based on the provided data, IDEXX Laboratories Inc has demonstrated strong profitability over the past five years based on various key ratios:
1. Operating return on assets (Operating ROA) has shown a consistent improvement from 30.27% in 2020 to 34.26% in 2024, indicating the company's ability to generate profit from its operating activities relative to its total assets.
2. Return on assets (ROA) has also exhibited an upward trend, increasing from 25.35% in 2020 to 26.96% in 2024, reflecting the company's efficiency in utilizing its assets to generate earnings.
3. Return on total capital has shown fluctuations over the years, with a notable peak in 2022 at 147.64%, suggesting the company's ability to generate returns from both equity and debt investments. However, the ratio decreased significantly in 2023 and 2024, indicating potential challenges in capital efficiency.
4. Return on equity (ROE) has demonstrated a similar trend to return on total capital, with a peak of 111.56% in 2022, followed by a decline in subsequent years. This ratio indicates how effectively the company is generating returns for its shareholders based on the equity invested.
In summary, IDEXX Laboratories Inc has showcased strong profitability performance, particularly in terms of operating efficiency and asset utilization. However, the fluctuating trends in return on total capital and return on equity signal the need for continuous monitoring and strategic management of capital resources to sustain and improve profitability levels in the future.