IDEX Corporation (IEX)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 44.21% | 44.19% | 44.84% | 44.29% | 43.69% |
| Operating profit margin | 20.72% | 22.37% | 23.61% | 23.04% | 22.14% |
| Pretax margin | 19.56% | 23.22% | 23.55% | 20.97% | 20.00% |
| Net profit margin | 15.45% | 18.21% | 18.44% | 16.25% | 16.07% |
IDEX Corporation's profitability ratios show a generally positive trend over the years.
- Gross profit margin has shown a steady increase from 43.69% in 2020 to 44.21% in 2024, indicating that the company has been able to improve its efficiency in generating profits after accounting for the cost of goods sold.
- Operating profit margin has also demonstrated an upward trend, reaching 23.61% in 2022 before declining slightly to 20.72% in 2024. This suggests that the company has been effective in managing its operating expenses to generate profits.
- Pretax margin has shown significant fluctuations, with a peak of 23.55% in 2022. However, it decreased to 19.56% in 2024, indicating that the company's pre-tax profitability has fluctuated over the years.
- Net profit margin has shown mixed results, with an increase from 16.07% in 2020 to 18.44% in 2022 before declining to 15.45% in 2024. This suggests that while the company has been able to translate its revenues into profits effectively, there have been fluctuations in its bottom line performance.
Overall, IDEX Corporation has demonstrated improvements in its gross profit margin and operating profit margin over the years, but its pre-tax and net profit margins have shown more variability. Further analysis of the company's cost structure and revenue sources may provide insights into the factors driving these profitability ratios.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 10.04% | 12.49% | 13.63% | 12.95% | 11.80% |
| Return on assets (ROA) | 7.49% | 10.16% | 10.65% | 9.14% | 8.56% |
| Return on total capital | 18.02% | 20.68% | 26.00% | 22.03% | 20.51% |
| Return on equity (ROE) | 13.31% | 16.83% | 19.31% | 16.03% | 14.87% |
Based on the provided data for IDEX Corporation, the profitability ratios show varying trends over the five-year period from December 31, 2020, to December 31, 2024.
1. Operating return on assets (Operating ROA) has been gradually increasing from 11.80% in 2020 to 13.63% in 2022 before experiencing a slight decline to 12.49% in 2023 and further dropping to 10.04% in 2024. This ratio indicates the company's ability to generate operating profits from its assets.
2. Return on assets (ROA) has shown a similar pattern, starting at 8.56% in 2020 and peaking at 10.65% in 2022. However, it declined slightly to 10.16% in 2023 and notably dropped to 7.49% in 2024. ROA reflects the company's overall profitability in relation to its total assets.
3. Return on total capital has seen an overall upward trend, increasing from 20.51% in 2020 to 26.00% in 2022, indicating efficient utilization of both debt and equity capital. However, it then decreased to 18.02% in 2024.
4. Return on equity (ROE) has followed a similar trajectory, rising from 14.87% in 2020 to 19.31% in 2022, before decreasing to 13.31% in 2024. This ratio demonstrates the company's ability to generate profits from shareholders' equity.
In summary, while the profitability ratios of IDEX Corporation displayed positive trends initially, there were fluctuations and declines observed in the later years, indicating potential shifts in the company's operational efficiency and financial performance. Further analysis would be required to determine the underlying factors driving these changes in profitability ratios.