IPG Photonics Corporation (IPGP)
Profitability ratios
Return on sales
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 42.08% | 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% | 46.11% | 48.49% | 50.62% | 52.71% |
| Operating profit margin | 18.02% | 8.68% | 11.11% | 10.79% | 11.86% | 23.47% | 23.59% | 25.06% | 25.18% | 24.31% | 20.97% | 18.71% | 16.54% | 11.42% | 14.08% | 16.84% | 17.78% | 24.63% | 27.78% | 31.84% |
| Pretax margin | 21.35% | 11.55% | 13.25% | 12.30% | 12.77% | 23.75% | 23.64% | 25.00% | 25.12% | 24.28% | 21.01% | 18.95% | 17.07% | 12.17% | 15.01% | 17.90% | 18.89% | 25.90% | 29.08% | 32.85% |
| Net profit margin | 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% | 13.71% | 19.45% | 22.23% | 24.94% |
IPG Photonics Corp's profitability ratios have shown fluctuations over the past eight quarters.
Starting with the gross profit margin, the company experienced a gradual decline from Q4 2022 to Q2 2023 before showing a slight improvement in Q4 2023. The gross profit margin stood at 42.08% in Q4 2023, indicating that the company retains $0.42 from each dollar of revenue after accounting for the cost of goods sold.
Moving on to the operating profit margin, there was a similar downward trend from Q4 2022 to Q2 2023, followed by a marginal increase in Q4 2023. The operating profit margin was at 17.99% in Q4 2023, reflecting the company's ability to generate profits from its core operations.
The pretax margin, which represents the percentage of each dollar of revenue that turns into profit before taxes, also showed fluctuations during the period. While Q4 2023 saw a substantial improvement compared to the previous quarter, the pretax margin was at 21.35%.
Lastly, the net profit margin, which indicates the company's overall profitability after all expenses have been deducted, exhibited significant variability. Notably, Q4 2023 saw a notable increase compared to the previous quarter, with a net profit margin of 17.00%.
Overall, IPG Photonics Corp's profitability ratios have displayed variability over the analyzed period, with improvements in profitability margins in Q4 2023 compared to the previous quarters. Monitoring these ratios can provide insights into the company's operational efficiency and financial health.
Return on investment
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.60% | 4.29% | 5.64% | 5.68% | 6.18% | 11.57% | 11.53% | 12.01% | 11.60% | 11.08% | 9.32% | 8.14% | 6.77% | 4.78% | 6.03% | 7.85% | 8.56% | 12.07% | 13.86% | 17.14% |
| Return on assets (ROA) | 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% | 6.60% | 9.53% | 11.09% | 13.42% |
| Return on total capital | 9.60% | 4.81% | 6.34% | 6.45% | 7.11% | 13.28% | 13.32% | 13.67% | 13.32% | 12.64% | 10.51% | 9.08% | 7.56% | 5.34% | 6.73% | 8.79% | 9.58% | 13.63% | 15.76% | 19.52% |
| Return on equity (ROE) | 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% | 7.50% | 10.93% | 12.82% | 15.56% |
IPG Photonics Corp's profitability ratios show fluctuating trends over the past eight quarters.
Operating return on assets (Operating ROA) has ranged from 6.93% to 11.57% with a recent uptick to 8.58% in Q4 2023. This ratio indicates that the company is generating a positive return on its assets through operations, although there may be room for improvement in efficiency.
Return on assets (ROA) has ranged from 3.16% to 9.04% with a significant decrease to 3.16% in Q3 2023, followed by a slight recovery to 8.11% in Q4 2023. This ratio reflects overall profitability relative to total assets, suggesting that IPG Photonics Corp has faced challenges in generating profits compared to the size of its asset base.
Return on total capital has varied from 7.77% to 13.20%, showing a downward trend in recent quarters to 9.59% in Q4 2023. This ratio evaluates the company's ability to earn a return on the total capital employed, including both debt and equity. The decreasing trend may indicate a need to improve capital utilization efficiency.
Return on equity (ROE) has experienced fluctuations from 3.55% to 10.38%, with a recent increase to 9.06% in Q4 2023. ROE measures the return generated on shareholders' equity, showing the company's ability to generate profits from shareholders' investments. The varying ROE highlights the company's performance in generating returns for its equity holders.
In conclusion, while IPG Photonics Corp has demonstrated profitability through its operations and capital structure, the variations in the profitability ratios suggest that there may be areas for improvement in managing assets, capital, and equity to enhance overall financial performance.