Knowles Cor (KN)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 42.42% | 44.61% | 36.13% | 41.41% | 35.48% |
| Operating profit margin | 9.36% | 9.50% | -54.24% | 13.34% | 3.82% |
| Pretax margin | -40.92% | 9.85% | -54.69% | 12.07% | 1.96% |
| Net profit margin | -42.96% | 15.85% | -56.24% | 17.33% | 0.86% |
Knowles Cor has shown variations in its profitability ratios over the years. The Gross Profit Margin increased from 35.48% in 2020 to 44.61% in 2023, indicating an improvement in the company's ability to generate revenue after accounting for the cost of goods sold. However, there was a slight decline to 42.42% in 2024.
The Operating Profit Margin improved significantly from 3.82% in 2020 to 13.34% in 2021, but experienced a sharp decline to -54.24% in 2022 before stabilizing around 9% in 2023 and 2024. The negative margin in 2022 indicates that the company's operating expenses exceeded its operating income for that year.
Similarly, the Pretax Margin saw a notable increase from 1.96% in 2020 to 12.07% in 2021 but dropped significantly to -54.69% in 2022. Despite recovering to 9.85% in 2023, it declined to -40.92% in 2024, reflecting challenges in generating profits before accounting for taxes.
The Net Profit Margin also exhibited fluctuation, with a substantial increase from 0.86% in 2020 to 17.33% in 2021. However, the margin turned negative in 2022 at -56.24%, signifying a net loss for that year. While improving to 15.85% in 2023, the margin decreased to -42.96% in 2024, indicating that the company experienced losses after considering all expenses and taxes.
Overall, Knowles Cor's profitability ratios reflect a mix of positive and negative trends, highlighting the company's financial performance and challenges in different years.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.63% | 2.97% | -35.04% | 6.69% | 1.76% |
| Return on assets (ROA) | -21.27% | 4.95% | -36.33% | 8.69% | 0.40% |
| Return on total capital | 5.82% | 4.06% | -39.97% | 7.57% | 2.24% |
| Return on equity (ROE) | -31.46% | 7.00% | -43.32% | 10.30% | 0.51% |
Knowles Cor's profitability ratios show significant fluctuations over the years:
1. Operating Return on Assets (Operating ROA):
- It increased from 1.76% in 2020 to 6.69% in 2021, indicating improved operational efficiency.
- However, it sharply declined to -35.04% in 2022, reflecting potential operational challenges.
- Subsequently, it recovered to 2.97% in 2023 and further improved to 4.63% in 2024.
2. Return on Assets (ROA):
- ROA was low at 0.40% in 2020 and significantly improved to 8.69% in 2021.
- However, it dropped to -36.33% in 2022, indicating potential issues with asset utilization.
- ROA recovered to 4.95% in 2023 but declined again to -21.27% in 2024, suggesting challenges in generating profits from assets.
3. Return on Total Capital:
- It started at 2.24% in 2020, increased to 7.57% in 2021, and then sharply decreased to -39.97% in 2022, signaling difficulties in generating returns relative to total capital.
- Return on total capital improved to 4.06% in 2023 and further to 5.82% in 2024.
4. Return on Equity (ROE):
- ROE was 0.51% in 2020, increased to 10.30% in 2021, but then dropped to -43.32% in 2022, indicating a substantial decline in profitability relative to shareholders' equity.
- It improved to 7.00% in 2023 but decreased again to -31.46% in 2024, suggesting challenges in delivering returns to equity holders.
Overall, the profitability ratios of Knowles Cor show volatility and highlight the company's varying success in generating profits from assets, operational efficiency, utilizing capital effectively, and delivering returns to shareholders.