IDEX Corporation (IEX)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 44.19% | 44.84% | 44.29% | 43.69% | 45.10% |
| Operating profit margin | 22.37% | 23.61% | 23.04% | 22.14% | 23.21% |
| Pretax margin | 23.24% | 23.56% | 20.97% | 20.00% | 21.36% |
| Net profit margin | 18.21% | 18.44% | 16.25% | 16.07% | 17.06% |
Idex Corporation has consistently maintained healthy profitability over the past five years. The gross profit margin has been relatively stable, ranging from 43.69% to 45.10%, with a slight dip in 2021. This indicates efficient cost management in production and sales.
The operating profit margin shows a similar trend, with slight fluctuations but generally staying above 22%. This implies effective control over operating expenses and a strong operational performance.
The pretax margin has shown an overall increasing trend, reaching its peak in 2023 at 23.22%. This suggests that the company has been successful in managing non-operating expenses and maximizing income before taxes.
The net profit margin, a measure of the company's overall profitability, has also been solid, ranging from 16.06% to 18.44%. This indicates that Idex Corporation has been effective in managing its overall expenses, including taxes, interest, and other costs, to generate net income.
Overall, Idex Corporation's profitability ratios reflect a well-managed and financially healthy company that has been able to consistently generate profits over the years.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 12.49% | 13.63% | 12.95% | 11.80% | 15.18% |
| Return on assets (ROA) | 10.16% | 10.65% | 9.14% | 8.56% | 11.16% |
| Return on total capital | 16.70% | 17.53% | 15.55% | 14.37% | 18.55% |
| Return on equity (ROE) | 16.83% | 19.31% | 16.03% | 14.87% | 18.80% |
Idex Corporation's profitability ratios indicate a fluctuating but generally healthy trend over the five-year period from 2019 to 2023.
1. Operating Return on Assets (Operating ROA): The operating ROA measures how effectively the company generates operating income relative to its total assets. Idex Corporation's operating ROA ranged from 12.06% to 15.73% during this period, with a peak in 2019 and a small decline thereafter. This ratio demonstrates that the company efficiently utilizes its assets to generate operating profits.
2. Return on Assets (ROA): The ROA indicates the company's overall ability to generate profits from its assets, including non-operating activities. Idex Corporation's ROA also showed variability, ranging from 8.56% to 11.16%. The company's ability to generate profits from all its assets stayed above 8%, indicating sound asset management and profitability.
3. Return on Total Capital: This ratio measures the profitability of the overall capital invested in the company, including both debt and equity. Idex Corporation consistently maintained a return on total capital above 14%, with a peak of 19.28% in 2019. This suggests that the company efficiently utilizes both debt and equity to generate profits.
4. Return on Equity (ROE): The ROE indicates the return generated on shareholders' equity investment. Idex Corporation's ROE ranged from 14.87% to 19.31% over the period, demonstrating the company's ability to generate a favorable return for its equity investors. A higher ROE indicates better profitability for shareholders.
Overall, Idex Corporation has shown strong profitability ratios over the past five years, with a stable performance in generating returns on assets, capital, and equity. This indicates efficient management of resources and a solid financial performance for the company.