ITT Inc (ITT)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 33.73% | 30.87% | 32.53% | 31.57% | 31.97% |
| Operating profit margin | 16.09% | 15.66% | 18.24% | 9.14% | 14.45% |
| Pretax margin | 15.70% | 15.33% | 18.30% | 3.54% | 14.58% |
| Net profit margin | 12.50% | 12.28% | 11.44% | 2.93% | 11.42% |
ITT Inc's profitability ratios have shown fluctuations over the past five years. The gross profit margin has generally been stable, ranging between 30.87% to 33.73%. This indicates that the company has been able to effectively manage its production costs relative to its revenue.
The operating profit margin has also demonstrated some variability, with the highest margin observed in 2021 at 18.59% and the lowest in 2020 at 11.45%. This suggests that ITT Inc's operational efficiency has not been consistently improving over the years.
The pretax margin saw a significant increase in 2021 to 18.41%, but experienced a notable decline in 2020 to 3.44%. This could indicate fluctuations in the company's ability to manage its expenses and generate income before taxes.
ITT Inc's net profit margin has generally been moderate, ranging between 11.42% to 12.50%. While the company has been able to maintain a positive net income relative to its total revenue, there is room for improvement to enhance profitability.
Overall, ITT Inc's profitability ratios reflect a mixed performance over the past five years, with some years showing stronger profitability than others. Continuous monitoring and strategic adjustments may be necessary to improve and sustain the company's profitability in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 13.43% | 12.38% | 14.14% | 5.30% | 10.02% |
| Return on assets (ROA) | 10.44% | 9.71% | 8.87% | 1.69% | 7.91% |
| Return on total capital | 20.85% | 20.75% | 22.56% | 10.59% | 19.70% |
| Return on equity (ROE) | 16.24% | 16.32% | 14.21% | 3.41% | 15.67% |
Based on the provided data, ITT Inc has shown varying levels of profitability over the years.
- Operating return on assets (Operating ROA) has fluctuated, with a significant increase from 2019 to 2021 and a slight decrease in 2023 compared to 2022. This ratio indicates the company's ability to generate profit from its assets before interest and taxes.
- Return on assets (ROA) has also shown fluctuations, with a notable increase from 2021 to 2023. ROA reflects the company's overall efficiency in generating profit from its assets.
- Return on total capital has followed a similar trend to Operating ROA, with an increase in 2021 and a slight decrease in 2023 compared to 2022. This ratio measures the company's overall profitability in relation to all forms of capital.
- Return on equity (ROE) has shown mixed results, with a significant increase in 2021 compared to 2020 and a slight decrease in 2023 compared to 2022. ROE evaluates the company's profitability from the perspective of its shareholders' equity.
Overall, the profitability ratios of ITT Inc indicate that the company has been able to generate reasonable returns from its assets and capital over the years, with some fluctuations in performance. The increasing trend in some ratios reflects improvements in the company's efficiency and profitability. Additional analysis and comparison with industry benchmarks would provide further insights into ITT Inc's financial performance.