Kadant Inc (KAI)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 14.62% | 16.06% | 14.88% | 12.46% | 44.17% |
| Operating profit margin | 16.29% | 17.44% | 19.11% | 14.92% | 12.92% |
| Pretax margin | 14.47% | 16.65% | 18.39% | 14.22% | 11.65% |
| Net profit margin | 10.62% | 12.21% | 13.49% | 10.75% | 8.79% |
Kadant Inc's gross profit margin has shown fluctuations over the past five years, ranging from a high of 44.17% in December 2020 to a low of 12.46% in December 2021. However, there has been some recovery with the margin improving to 16.06% in December 2023. In December 2024, the gross profit margin decreased slightly to 14.62%.
The operating profit margin for Kadant Inc has generally been increasing over the same period, starting at 12.92% in December 2020 and reaching a peak of 19.11% in December 2022. There was a slight decline to 16.29% in December 2024 from the previous year.
The pretax margin, which indicates the company's profitability before taxes, has shown an upward trend for Kadant Inc, increasing from 11.65% in December 2020 to 18.39% in December 2022. However, there was a decrease in December 2024 to 14.47%.
Lastly, the net profit margin, representing the company's profitability after all expenses have been deducted, has shown a similar pattern to the pretax margin, with an increase from 8.79% in December 2020 to 13.49% in December 2022, followed by a decline to 10.62% in December 2024.
Overall, Kadant Inc has demonstrated improving profitability, as seen in the upward trends of the operating, pretax, and net profit margins over the analyzed period, despite fluctuations in the gross profit margin. It is essential for investors to closely monitor these margins to assess the company's financial health and operational efficiency.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 11.97% | 14.10% | 14.90% | 10.31% | 8.75% |
| Return on assets (ROA) | 7.80% | 9.87% | 10.52% | 7.42% | 5.95% |
| Return on total capital | 20.22% | 21.54% | 26.20% | 20.58% | 16.26% |
| Return on equity (ROE) | 13.17% | 15.00% | 18.49% | 14.90% | 11.14% |
Kadant Inc's profitability ratios have shown fluctuations over the years based on the provided data.
1. Operating return on assets (Operating ROA) has seen a positive trend, increasing from 8.75% in 2020 to 14.10% in 2023 before slightly decreasing to 11.97% in 2024. This indicates that the company's operational efficiency in generating profit from its assets has been improving overall.
2. Return on assets (ROA) has also shown an upward trend, starting at 5.95% in 2020 and reaching 10.52% in 2022 before decreasing to 7.80% in 2024. This ratio shows the company's effectiveness in generating profits from its total assets, also reflecting an improvement in performance over the years.
3. Return on total capital has demonstrated growth, increasing from 16.26% in 2020 to 26.20% in 2022, then declined to 20.22% in 2024. This ratio indicates the company's ability to generate profits from its total invested capital, including debt and equity, showing a generally positive performance.
4. Return on equity (ROE) has followed a similar pattern, starting at 11.14% in 2020 and peaking at 18.49% in 2022, then slightly declining to 13.17% in 2024. ROE measures the return generated on shareholder equity, and the company has maintained a satisfactory level of return to its equity investors over the years.
Overall, Kadant Inc has shown improvements in its operational efficiency, asset utilization, and capital management, contributing to its overall profitability performance during the period under review.