KBR Inc (KBR)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 14.30% | 12.75% | 11.12% | 11.55% | 11.58% |
| Operating profit margin | 6.56% | 5.28% | 3.19% | 0.99% | 6.42% |
| Pretax margin | -2.49% | 4.34% | 1.90% | -0.61% | 4.63% |
| Net profit margin | -3.88% | 2.92% | 0.37% | -1.09% | 3.58% |
KBR Inc's profitability ratios have shown some variability over the past five years. The gross profit margin has generally been increasing, indicating that the company is becoming more efficient in generating revenue after accounting for the cost of goods sold. The operating profit margin has also been on an upward trend, suggesting that KBR Inc has been able to control its operating expenses more effectively in recent years.
However, the pretax margin has been fluctuating, with negative values in 2020 and 2023. This indicates that the company's profitability before taxes has been inconsistent and may be impacted by factors such as non-operating expenses or changes in tax liabilities. The net profit margin has followed a similar pattern, with negative values in 2020 and 2023, reflecting challenges in generating net income after all expenses.
Overall, while KBR Inc has shown improvements in its gross and operating profit margins, the variability in pretax and net profit margins suggests that the company may face challenges in sustaining profitability levels consistently. Further analysis of the factors influencing these margins would be necessary to better understand KBR Inc's profitability performance.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.05% | 6.16% | 3.72% | 1.00% | 6.75% |
| Return on assets (ROA) | -4.76% | 3.41% | 0.44% | -1.10% | 3.77% |
| Return on total capital | -1.73% | 12.32% | 6.15% | 1.17% | 11.91% |
| Return on equity (ROE) | -19.16% | 11.73% | 1.62% | -3.99% | 10.98% |
KBR Inc's profitability ratios have seen fluctuations over the past five years. In terms of operating profitability, the operating return on assets (Operating ROA) has shown a positive trend, improving from 3.72% in 2021 to 8.05% in 2023. This indicates that the company has been able to generate more operating income relative to its assets in recent years.
However, when looking at the overall profitability, the return on assets (ROA) has been negative in 2023 at -4.76%, which indicates that the company may be experiencing challenges in generating profits from its total assets. The return on total capital has also shown a declining trend, with -1.73% in 2023, compared to 6.15% in 2021. This suggests that the company may not be efficiently utilizing its total capital to generate returns.
Furthermore, the return on equity (ROE) has been negative in 2023 at -19.16%, indicating that the company is facing challenges in generating profits for its shareholders relative to the equity invested. It is worth noting that in 2022, the ROE was positive at 11.73%, but it has since declined.
Overall, KBR Inc's profitability ratios show mixed performance, with improvements in operating profitability but challenges in generating overall profitability and returns for both total capital and equity holders. The company may need to focus on optimizing its asset utilization and capital structure to enhance its overall profitability in the future.