KBR Inc (KBR)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 14.23% | 14.30% | 12.75% | 11.12% | 11.55% |
| Operating profit margin | 8.54% | 6.56% | 5.28% | 3.19% | 0.99% |
| Pretax margin | 6.52% | -2.49% | 4.34% | 1.90% | -0.61% |
| Net profit margin | 4.84% | -3.88% | 2.92% | 0.37% | -1.09% |
Based on the provided data for KBR Inc's profitability ratios, several key observations can be made:
1. Gross Profit Margin:
- The Gross Profit Margin has shown a general increasing trend over the years, starting at 11.55% in 2020 and reaching 14.23% in 2024.
- This indicates that KBR Inc has been able to improve its efficiency in generating profits from its revenue after accounting for the cost of goods sold.
2. Operating Profit Margin:
- The Operating Profit Margin has also demonstrated a consistent upward trajectory, rising from 0.99% in 2020 to 8.54% in 2024.
- This suggests that KBR Inc has effectively managed its operating expenses and operational costs to enhance profitability.
3. Pretax Margin:
- The Pretax Margin has shown fluctuations over the years, with a significant improvement from -0.61% in 2020 to 6.52% in 2024.
- Despite some volatility, the positive trend indicates that KBR Inc has been successful in managing its pre-tax earnings in relation to its total revenue.
4. Net Profit Margin:
- The Net Profit Margin has experienced fluctuations but has generally improved from -1.09% in 2020 to 4.84% in 2024.
- This metric reflects the overall efficiency of KBR Inc in generating profits after accounting for all expenses, including taxes and interest.
Overall, KBR Inc has shown positive trends in its profitability ratios over the years, indicating effective cost management, improved operational efficiency, and better overall financial performance. It is essential for the company to continue monitoring and optimizing these ratios to sustain and further enhance its profitability in the future.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.94% | 8.05% | 6.16% | 3.72% | 1.00% |
| Return on assets (ROA) | 5.63% | -4.76% | 3.41% | 0.44% | -1.10% |
| Return on total capital | 16.61% | -1.73% | 12.32% | 6.15% | 1.17% |
| Return on equity (ROE) | 25.81% | -19.16% | 11.73% | 1.62% | -3.99% |
KBR Inc's profitability ratios have shown a positive trend over the past five years.
1. Operating return on assets (Operating ROA) has improved consistently from 1.00% in 2020 to 9.94% in 2024, indicating the company's ability to generate profit from its operations relative to its total assets.
2. Return on assets (ROA) has also shown improvement, with a fluctuation in 2020 and 2023 but a significant increase to 5.63% in 2024. This ratio reflects the company's efficiency in generating profits from its assets.
3. Return on total capital has displayed a similar positive trajectory, escalating from 1.17% in 2020 to 16.61% in 2024. This metric highlights the company's profitability in relation to its total capital invested.
4. Return on equity (ROE) exhibited a noteworthy improvement, rebounding from negative values in 2020 and 2023 to reach 25.81% in 2024. ROE signifies the return generated for shareholders relative to their equity investment.
Overall, the upward trend in these profitability ratios indicates KBR Inc's enhanced efficiency and effectiveness in generating profits over the evaluated period.