Keysight Technologies Inc (KEYS)
Profitability ratios
Return on sales
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 30.31% | 38.85% | 37.80% | 34.12% | 29.14% |
| Operating profit margin | 16.73% | 24.85% | 24.61% | 21.86% | 18.12% |
| Pretax margin | 17.37% | 24.84% | 23.71% | 20.44% | 18.03% |
| Net profit margin | 12.33% | 19.34% | 20.74% | 18.09% | 14.85% |
Keysight Technologies Inc has demonstrated a varying trend in profitability ratios over the past five years. The gross profit margin has fluctuated, starting at 29.14% in 2020, increasing to 38.85% in 2023, and then decreasing to 30.31% in 2024. This indicates the company's ability to generate profit from its core business operations.
The operating profit margin has also experienced fluctuations, with a decreasing trend from 18.12% in 2020 to 16.73% in 2024. This suggests that the company's efficiency in managing operating expenses may have faced challenges during this period.
In terms of pretax margin, there has been variability with a peak of 24.84% in 2023 and then a decline to 17.37% in 2024. This ratio reflects the company's profitability before accounting for taxes and indicates its ability to generate earnings from its operations.
The net profit margin, which represents the final profit after all expenses, has shown a similar trend to the pretax margin, peaking at 20.74% in 2022 and then decreasing to 12.33% in 2024. This indicates that the company's bottom-line profitability has also been impacted by various factors over the years.
Overall, the fluctuating profitability ratios of Keysight Technologies Inc suggest that the company has experienced challenges in maintaining consistent levels of profitability, which may require further analysis and strategic actions to address.
Return on investment
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.99% | 15.64% | 16.47% | 13.88% | 10.60% |
| Return on assets (ROA) | 6.62% | 12.17% | 13.88% | 11.49% | 8.69% |
| Return on total capital | 13.76% | 23.22% | 22.41% | 19.37% | 15.04% |
| Return on equity (ROE) | 12.03% | 22.71% | 27.01% | 23.63% | 19.02% |
In analyzing the profitability ratios of Keysight Technologies Inc over the five-year period from October 31, 2020, to October 31, 2024, several key insights can be gleaned.
1. Operating Return on Assets (Operating ROA):
Operating ROA measures how effectively a company utilizes its assets to generate operating income. Keysight's Operating ROA has shown a fluctuating trend over the period, starting at 10.60% in 2020, peaking at 16.47% in 2022, and then declining to 8.99% in 2024. This suggests that the company's operating efficiency has been somewhat volatile but generally positive.
2. Return on Assets (ROA):
ROA indicates the company's ability to generate profit relative to its total assets. Keysight's ROA has also exhibited a fluctuating pattern, ranging from 8.69% in 2020 to 13.88% in 2022, and then decreasing to 6.62% by 2024. This trend suggests that the company's overall profitability in relation to its assets has been somewhat inconsistent.
3. Return on Total Capital:
Return on Total Capital reflects how well a company generates earnings from its total invested capital. Keysight's Return on Total Capital has shown an upward trajectory over the five-year period, rising from 15.04% in 2020 to 23.22% in 2023, before dipping slightly to 13.76% in 2024. This indicates that the company has been efficiently utilizing its total capital to generate returns, with a notable improvement until 2023.
4. Return on Equity (ROE):
ROE measures the company's ability to generate profit from shareholders' equity. Keysight's ROE has demonstrated a similar upward trend as Return on Total Capital, increasing from 19.02% in 2020 to 27.01% in 2022, then moderating to 12.03% in 2024. This suggests that shareholders' equity has been effectively leveraged to drive profitability, although the ROE metric experienced a decline in the most recent year.
Overall, while Keysight Technologies Inc has shown varying levels of profitability ratios over the five-year period, the company has generally displayed positive trends in terms of operational efficiency and capital utilization. However, the recent declines in some ratios may warrant further investigation to understand the underlying drivers affecting the company's profitability.