JBTMarel Corp (JBTM)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 36.51% | 35.19% | 33.29% | 34.42% | 30.89% |
| Operating profit margin | 6.90% | 9.90% | 8.34% | 8.97% | 9.44% |
| Pretax margin | 5.56% | 9.20% | 7.55% | 8.53% | 8.42% |
| Net profit margin | 4.98% | 35.00% | 8.64% | 8.50% | 6.30% |
The analysis of JBTMarel Corp's profitability ratios over the indicated period reveals a dynamic performance pattern across various metrics.
The gross profit margin shows a general upward trend, rising from 30.89% at the end of 2020 to 36.51% in 2024. This improvement indicates enhanced efficiency in production or sourcing costs, leading to higher profitability on sales before operating expenses.
The operating profit margin experienced fluctuations, decreasing slightly from 9.44% in 2020 to a low of 8.34% in 2022, before increasing again to 9.90% in 2023. However, in 2024, it declined to 6.90%. The variability suggests periods of operational challenges or increased operating expenses amidst generally stable core profitability.
Pre-tax margins followed a similar pattern, starting at 8.42% in 2020, peaking at 9.20% in 2023, and then decreasing to 5.56% in 2024. The decline in 2024 impacts overall pre-tax profitability, possibly reflecting increased costs, higher interest expenses, or other non-operating charges.
The net profit margin demonstrates significant fluctuation, with an initial increase from 6.30% in 2020 to 8.50% in 2021 and a slight rise to 8.64% in 2022. Notably, there is a substantial spike to 35.00% in 2023, suggesting a one-time gain, extraordinary item, or exceptional operational performance during that year. However, in 2024, the net margin declines sharply to 4.98%, approaching levels similar to those of 2020, indicating a potential return to more typical profitability levels or increased costs eroding margins.
Overall, while gross profitability has generally improved, margins at the operating, pre-tax, and net levels exhibit volatility, with notable peaks in 2023 and significant declines in 2024. This pattern suggests periods of exceptional performance interwoven with challenges that impacted overall profitability in the most recent year.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.47% | 6.08% | 5.02% | 5.87% | 9.03% |
| Return on assets (ROA) | 2.50% | 21.49% | 5.20% | 5.56% | 6.02% |
| Return on total capital | 7.43% | 11.91% | 15.05% | 17.42% | 25.02% |
| Return on equity (ROE) | 5.53% | 39.13% | 15.18% | 15.88% | 17.08% |
The profitability ratios for JBTMarel Corp over the period from December 31, 2020, to December 31, 2024, reveal significant fluctuations and trends in the company's financial performance.
The Operating Return on Assets (Operating ROA) exhibited a decline from 9.03% in 2020 to the lowest point of 3.47% in 2024. This indicates a decreasing efficiency in generating operating income from the company's underlying assets, with the most notable drop occurring between 2023 and 2024. Despite a moderate recovery from 5.87% in 2021 to 5.02% in 2022, the overall trend suggests deteriorating operational efficiency in recent years.
The Return on Assets (ROA), which considers net income in relation to total assets, followed a relatively stable pattern with values around 6.02% to 5.56% between 2020 and 2021, and slightly declining to 5.20% in 2022. However, an anomalous spike occurred in 2023, where ROA sharply increased to 21.49%, before collapsing to 2.50% in 2024. The 2023 spike likely reflects exceptional earnings or one-time gains, which are not sustained in subsequent periods, indicating volatility in net profitability.
Return on Total Capital displayed a consistent downward trend from 25.02% in 2020 to 7.43% in 2024. This steady decline suggests the company's ability to generate returns from both equity and debt capital has been weakening over time, possibly due to increased capital costs or declining operational effectiveness.
Return on Equity (ROE) demonstrated a similar pattern, declining from 17.08% in 2020 to 15.88% in 2021, and to 15.18% in 2022. A notable spike occurred in 2023, where ROE surged to 39.13%, possibly driven by extraordinary earnings activities or equity restructuring. Nonetheless, the ratio fell sharply in 2024 to 5.53%, reflecting a substantial decrease in shareholder returns and potentially indicating challenges in sustaining high profitability levels.
Overall, the data indicates that JBTMarel Corp experienced periods of high profitability, particularly in 2023, likely driven by exceptional factors. However, the trend over the broader timeframe points to weakening operational and overall profitability, especially in the most recent year, which warrants further analysis of underlying causes such as operational challenges, market conditions, or accounting effects.