Itron Inc (ITRI)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 32.93% | 29.20% | 30.46% | 29.06% | 30.71% |
| Operating profit margin | 5.94% | -0.42% | -4.21% | -0.50% | 5.42% |
| Pretax margin | 5.81% | -0.89% | -6.74% | -2.79% | 2.84% |
| Net profit margin | 4.47% | -0.54% | -4.32% | -2.80% | 2.00% |
Itron Inc.'s profitability ratios have shown fluctuating trends over the past five years. The gross profit margin has ranged from 27.71% to 32.84%, with the highest margin recorded in 2023. This indicates the company's ability to control production costs and generate profits from its core operations.
The operating profit margin has shown greater variability, ranging from 1.17% to 7.98%. The significant improvement in 2023 suggests better cost management strategies or increased operating efficiency.
The pretax margin has shown inconsistency, with negative margins in 2021 and 2022 but recovering to a positive 5.86% in 2023. This indicates that the company has managed its pre-tax income more effectively in the most recent year.
The net profit margin has also varied significantly, reaching a low of -4.10% in 2021 but rebounding to 4.46% in 2023. This improvement in profitability after facing losses in previous years may show successful cost-cutting measures or revenue enhancements.
Overall, while Itron Inc. has shown improvement in its profitability ratios in 2023 compared to previous years, it still faces challenges in maintaining consistent profitability over the long term. Further analysis of the company's financial performance and strategic initiatives would be necessary to assess its future profitability prospects.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.95% | -0.31% | -3.31% | -0.40% | 4.90% |
| Return on assets (ROA) | 3.72% | -0.41% | -3.39% | -2.22% | 1.81% |
| Return on total capital | 7.61% | -0.57% | -6.26% | -0.80% | 7.14% |
| Return on equity (ROE) | 7.39% | -0.83% | -7.28% | -7.10% | 6.31% |
Itron Inc.'s profitability ratios reflect varying levels of performance over the past five years.
1. Operating return on assets (Operating ROA) has shown improvement from 2019 to 2023, reaching 6.66% in the most recent year. This ratio indicates that the company is generating a positive return from its operational assets.
2. Return on assets (ROA) has also demonstrated improvement, moving from negative territory in 2020 and 2021 to 3.72% in 2023. ROA shows the company's ability to generate profits from its total assets.
3. Return on total capital has shown a similar positive trend, increasing to 9.83% in 2023. This ratio reflects the return generated from both debt and equity capital invested in the company.
4. Return on equity (ROE) has been more volatile, with negative values in 2020 and 2021. However, it rebounded to 7.39% in 2023. ROE measures the return earned on shareholder equity.
Overall, the improving trend in these profitability ratios suggests that Itron Inc. has been able to enhance its operational efficiency and profitability in recent years. However, monitoring these ratios over time will be essential to ensure sustained performance and value creation for investors.