Keysight Technologies Inc (KEYS)
Profitability ratios
Return on sales
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 38.85% | 37.80% | 34.12% | 29.14% | 26.96% |
| Operating profit margin | 24.85% | 24.61% | 21.86% | 18.12% | 16.52% |
| Pretax margin | 24.84% | 23.71% | 20.44% | 18.03% | 16.62% |
| Net profit margin | 19.34% | 20.74% | 18.09% | 14.85% | 14.43% |
The profitability ratios of Keysight Technologies Inc demonstrate a consistent upward trend over the past five years, indicating improved overall profitability. The gross profit margin has increased from 58.89% in 2019 to 64.64% in 2023, reflecting the company's ability to efficiently manage production costs and generate more revenue from sales.
Similarly, the operating profit margin has steadily risen from 16.06% in 2019 to 24.58% in 2023, indicating enhanced efficiency in controlling operating expenses while increasing operating income. The pretax margin has also shown a positive trajectory, reaching 24.84% in 2023, compared to 16.62% in 2019, signifying improved pre-tax profitability.
The net profit margin, a key indicator of the company's bottom-line profitability, has exhibited a consistent growth pattern, reaching 19.34% in 2023 from 14.43% in 2019. This growth reflects the company's ability to effectively manage its costs and generate higher profits from its core business activities.
Overall, the increasing trend in all profitability ratios suggests that Keysight Technologies Inc has achieved greater efficiency in cost management and revenue generation, resulting in improved overall profitability over the past five years.
Return on investment
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 15.64% | 16.47% | 13.88% | 10.60% | 10.74% |
| Return on assets (ROA) | 12.17% | 13.88% | 11.49% | 8.69% | 9.38% |
| Return on total capital | 23.22% | 22.41% | 19.37% | 15.04% | 14.84% |
| Return on equity (ROE) | 22.71% | 27.01% | 23.63% | 19.02% | 20.67% |
Based on the provided data, Keysight Technologies Inc's profitability ratios have displayed fluctuations over the past five years.
Starting with the operating return on assets (Operating ROA), the company's performance has been fairly consistent, with a slight decrease in 2023 compared to the previous year. This ratio suggests that the company generates 15.47% of operating income for every dollar of assets, indicating effective asset utilization to generate operating profits.
The return on assets (ROA) indicates the overall profitability of the company relative to its total assets. The decreasing trend from 13.88% in 2022 to 12.17% in 2023 could imply a decrease in overall asset efficiency in generating profits, potentially due to increased asset base or reduced profitability.
The return on total capital reflects a company's ability to generate earnings from its total capital. The trend shows a decrease in 2023 compared to the previous year, suggesting a potential decrease in the efficiency of the company's capital utilization to generate profits.
Lastly, the return on equity (ROE) portrays how much profit the company generates with the money shareholders have invested. The decreasing trend from 27.01% in 2022 to 22.71% in 2023 indicates a potential reduction in the ability to generate profits from shareholders' equity.
In conclusion, the profitability ratios exhibit fluctuations, indicating a need for further analysis into the company's asset and capital utilization to maintain or improve its profitability.