IPG Photonics Corporation (IPGP)
Profitability ratios
Return on sales
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 36.04% | 36.15% | 41.02% | 41.34% | 42.12% | 36.94% | 36.93% | 37.71% | 38.85% | 45.23% | 46.69% | 47.41% | 47.67% | 47.26% | 46.94% | 46.27% | 44.89% | 44.10% | 43.71% | 44.86% |
| Operating profit margin | -21.05% | -18.27% | 10.69% | 14.77% | 18.06% | 19.48% | 18.42% | 17.91% | 18.86% | 20.54% | 23.59% | 25.06% | 25.18% | 24.31% | 20.97% | 18.71% | 16.54% | 11.42% | 14.08% | 16.84% |
| Pretax margin | -16.57% | -13.61% | 15.19% | 18.89% | 21.35% | 11.55% | 13.28% | 12.36% | 12.83% | 23.82% | 23.64% | 24.96% | 25.09% | 24.25% | 21.03% | 18.98% | 17.13% | 12.22% | 15.06% | 17.95% |
| Net profit margin | -18.58% | -14.20% | 12.67% | 15.34% | 17.00% | 6.40% | 7.73% | 7.14% | 7.69% | 18.34% | 17.91% | 18.84% | 19.06% | 18.33% | 16.24% | 14.75% | 13.29% | 9.04% | 10.79% | 12.93% |
The profitability ratios of IPG Photonics Corporation have shown fluctuations over the periods analyzed.
- Gross Profit Margin: The gross profit margin has been relatively stable in the range of 36.15% to 47.67%, indicating the company's ability to generate profits after accounting for the cost of goods sold.
- Operating Profit Margin: The operating profit margin exhibited greater variability, ranging from -21.05% to 25.18%. This suggests fluctuations in the company's ability to control operating expenses and generate profits from its core business activities.
- Pretax Margin: The pretax margin varied from -16.57% to 25.09%, indicating fluctuations in the company's profitability before accounting for taxes. This ratio provides insight into the overall efficiency of the company in generating profits from its operations.
- Net Profit Margin: The net profit margin showed fluctuations between -18.58% and 19.06%, indicating variability in the company's bottom-line profitability after accounting for all expenses and taxes.
Overall, the profitability ratios of IPG Photonics Corporation reflect the company's performance in managing its costs, generating revenues, and controlling expenses over the periods analyzed. It is important for stakeholders to closely monitor these ratios to assess the company's financial health and performance.
Return on investment
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -8.98% | -8.08% | 4.76% | 6.78% | 8.61% | 9.64% | 9.36% | 9.43% | 9.83% | 10.13% | 11.53% | 12.01% | 11.60% | 11.08% | 9.32% | 8.14% | 6.77% | 4.78% | 6.03% | 7.85% |
| Return on assets (ROA) | -7.93% | -6.28% | 5.64% | 7.04% | 8.11% | 3.16% | 3.92% | 3.76% | 4.01% | 9.04% | 8.76% | 9.03% | 8.78% | 8.35% | 7.22% | 6.41% | 5.44% | 3.78% | 4.62% | 6.03% |
| Return on total capital | 0.72% | 1.41% | 5.01% | 7.37% | 9.59% | 7.77% | 7.53% | 8.37% | 8.81% | 11.81% | 13.36% | 13.24% | 13.11% | 12.88% | 12.17% | 11.19% | 8.93% | 8.54% | 8.67% | 10.45% |
| Return on equity (ROE) | -8.97% | -6.99% | 6.24% | 7.81% | 9.06% | 3.55% | 4.41% | 4.30% | 4.61% | 10.38% | 10.12% | 10.34% | 10.14% | 9.59% | 8.24% | 7.25% | 6.15% | 4.28% | 5.23% | 6.86% |
IPG Photonics Corporation's profitability ratios exhibit varying trends over the reported periods. The Operating return on assets (Operating ROA) increased steadily from 7.85% in March 2020 to a peak of 12.01% in March 2022, before experiencing a slight decline to 8.61% by December 2023. However, there was a significant drop in September 2024 to -8.08%, indicating a sharp decrease in operating efficiency during that period.
Similarly, the Return on assets (ROA) also followed an upward trajectory, reaching a peak of 9.03% in March 2022, before fluctuating and ultimately dropping to -7.93% by December 2024, highlighting potential challenges in generating profits from the company's assets.
The Return on total capital ratio trended upwards initially, peaking at 13.36% in June 2022, but subsequently decreased to 0.72% by December 2024, implying a decline in the company's ability to generate returns from its total capital.
Regarding Return on equity (ROE), the ratio increased from 6.86% in March 2020 to a peak of 10.34% in March 2022. However, the ratio dropped to -8.97% by December 2024, indicating a substantial erosion in shareholder value during that period.
Overall, while IPG Photonics Corporation showed strong profitability metrics in the past, the recent declines in certain ratios, particularly in the latter half of 2024, may suggest challenges impacting the company's operational and financial performance that warrant further investigation and strategic action.