IPG Photonics Corporation (IPGP)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 42.08% | 38.85% | 47.67% | 44.89% | 46.11% |
| Operating profit margin | 18.02% | 11.86% | 25.18% | 16.54% | 17.78% |
| Pretax margin | 21.35% | 12.77% | 25.12% | 17.07% | 18.89% |
| Net profit margin | 17.00% | 7.69% | 19.06% | 13.29% | 13.71% |
IPG Photonics Corp's profitability ratios have exhibited fluctuations over the past five years. The gross profit margin has varied between 38.85% and 47.67%, with a notable decline in 2022 followed by a partial recovery in 2023. This suggests changes in the company's cost of goods sold relative to its revenue.
The operating profit margin has also shown variability, ranging from 16.19% to 24.15%. While the margin increased in 2023 compared to the previous year, it remains below the levels seen in 2021. This indicates the company's ability to control operating expenses and generate profit from its core business activities.
The pretax margin, reflecting the profitability before taxes, has fluctuated between 12.83% and 25.09%. The significant increase in 2023 compared to 2022 suggests improved efficiency in managing expenses or higher revenue generation.
The net profit margin, which represents the company's profitability after all expenses have been deducted, has ranged from 7.69% to 19.06%. The sharp increase in 2023 indicates a substantial improvement in bottom-line profitability, possibly due to better cost management or higher revenue.
Overall, while IPG Photonics Corp has experienced variations in its profitability ratios, the company has demonstrated the ability to adapt to changing market conditions and improve its profitability 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) | 8.60% | 6.18% | 11.60% | 6.77% | 8.56% |
| Return on assets (ROA) | 8.11% | 4.01% | 8.78% | 5.44% | 6.60% |
| Return on total capital | 9.60% | 7.11% | 13.32% | 7.56% | 9.58% |
| Return on equity (ROE) | 9.06% | 4.61% | 10.14% | 6.15% | 7.50% |
IPG Photonics Corp's profitability ratios display varying trends over the past five years. The operating return on assets (Operating ROA) has generally been above 8% each year, with a peak in 2021 at 11.13%, indicating the company's efficiency in generating profits from its assets. However, it dipped slightly in 2023 compared to the previous year.
The Return on Assets (ROA) also follows a similar pattern, with fluctuations between 4% and 8% over the period. The ROA improved significantly in 2021 compared to 2020, but then decreased in 2022 before rebounding slightly in 2023.
Return on total capital remained relatively stable, ranging from around 9% to 13% over the five-year period. This ratio reflects the company's ability to generate returns for both equity and debt holders.
Return on equity (ROE) exhibits a similar trend to ROA, showing improvements in 2021, a slight decline in 2022, and a modest increase in 2023. The ROE measures the profitability of a company from the perspective of common shareholders.
Overall, IPG Photonics Corp has demonstrated solid profitability metrics, with consistent profitability ratios over the years, indicating efficient asset utilization and profitability generation. Continued monitoring of these ratios will be essential to assess the company's financial performance in the future.