ITT Inc (ITT)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 34.35% | 33.73% | 30.87% | 32.53% | 31.57% |
| Operating profit margin | 18.62% | 16.09% | 15.66% | 18.24% | 9.14% |
| Pretax margin | 17.74% | 15.70% | 15.33% | 18.30% | 3.54% |
| Net profit margin | 14.28% | 12.50% | 12.28% | 11.44% | 2.93% |
ITT Inc's profitability ratios have shown a positive trend over the years. The gross profit margin has improved steadily from 31.57% in December 2020 to 34.35% in December 2024, indicating the company's ability to generate more revenue after accounting for the cost of goods sold.
The operating profit margin also exhibits a strong performance, more than doubling from 9.14% in December 2020 to 18.62% in December 2024. This suggests that ITT Inc has been effective in managing its operating expenses while increasing its operating income.
Furthermore, the pretax margin has shown consistent growth, starting at 3.54% in December 2020 and reaching 17.74% in December 2024. This indicates the company's ability to generate higher profits before accounting for taxes over the years.
Lastly, the net profit margin has also shown a positive trend, increasing from 2.93% in December 2020 to 14.28% in December 2024. This indicates that ITT Inc has been successful in improving its bottom line profitability, reflecting efficient cost management and revenue generation.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 14.35% | 13.43% | 12.38% | 14.14% | 5.30% |
| Return on assets (ROA) | 11.00% | 10.44% | 9.71% | 8.87% | 1.69% |
| Return on total capital | 22.57% | 20.85% | 20.75% | 22.56% | 10.59% |
| Return on equity (ROE) | 18.76% | 16.24% | 16.32% | 14.21% | 3.41% |
Based on the provided data, let's analyze the profitability ratios of ITT Inc over the period from December 31, 2020, to December 31, 2024:
1. Operating Return on Assets (Operating ROA):
- The Operating ROA has shown a positive trend, increasing from 5.30% in 2020 to 14.35% in 2024.
- This ratio indicates the efficiency of ITT Inc in generating operating income from its assets.
2. Return on Assets (ROA):
- The ROA also reflects a positive trend, rising from 1.69% in 2020 to 11.00% in 2024.
- This ratio measures the overall effectiveness of ITT Inc in utilizing its assets to generate profits.
3. Return on Total Capital:
- The Return on Total Capital demonstrates an increasing trend, from 10.59% in 2020 to 22.57% in 2024.
- This ratio evaluates the company's ability to generate returns from both debt and equity investments.
4. Return on Equity (ROE):
- The ROE has consistently improved over the years, climbing from 3.41% in 2020 to 18.76% in 2024.
- ROE shows how well ITT Inc is generating profits from shareholders' equity.
Overall, ITT Inc has displayed significant improvements in its profitability ratios, indicating enhanced efficiency in generating profits relative to its assets, capital, and equity over the specified period.