Knife River Corporation (KNF)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 19.66% | 19.04% | 13.70% | 15.57% | 17.01% |
| Operating profit margin | 10.91% | 10.47% | 6.49% | 8.57% | 9.85% |
| Pretax margin | 9.35% | 8.67% | 3.92% | 7.77% | 8.94% |
| Net profit margin | 6.96% | 6.46% | 2.88% | 5.82% | 6.76% |
Knife River Corporation's profitability ratios have shown fluctuating trends over the past five years. The gross profit margin decreased from 17.01% in 2020 to 13.70% in 2022 but rebounded to 19.66% in 2024, indicating some variability in the company's ability to generate profit after accounting for the cost of goods sold.
Similarly, the operating profit margin followed a similar pattern, declining from 9.85% in 2020 to 6.49% in 2022 but then increasing to 10.91% in 2024. This trend suggests that Knife River Corporation's efficiency in managing its operating expenses improved over the years.
The pretax margin experienced a significant drop from 8.94% in 2020 to 3.92% in 2022 before recovering to 9.35% in 2024. This indicates that the company's profitability before accounting for taxes was impacted by various factors during the years, with a noteworthy rebound in 2024.
The net profit margin, reflecting the company's bottom line profitability, decreased from 6.76% in 2020 to 2.88% in 2022 but saw an improvement to 6.96% in 2024. Knife River Corporation managed to enhance its ability to convert revenue into profit after all expenses, including taxes.
Overall, the trend in profitability ratios for Knife River Corporation shows variability in performance over the years, with some fluctuations but also signs of recovery and improvement by the end of the period.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 11.09% | 11.40% | 6.57% | 8.76% | — |
| Return on assets (ROA) | 7.07% | 7.03% | 2.91% | 5.95% | — |
| Return on total capital | 22.10% | 23.96% | 18.79% | 19.93% | — |
| Return on equity (ROE) | 13.66% | 14.44% | 7.10% | 13.62% | — |
Based on the provided data, let's analyze Knife River Corporation's profitability ratios:
1. Operating Return on Assets (Operating ROA):
- Knife River Corporation's Operating ROA was 8.76% in 2021, declined to 6.57% in 2022, but increased significantly to 11.40% in 2023 and remained strong at 11.09% in 2024. This ratio measures the company's operating profit generated per dollar of assets employed.
2. Return on Assets (ROA):
- ROA for Knife River Corporation was 5.95% in 2021, dropped to 2.91% in 2022, then rebounded to 7.03% in 2023 and slightly increased to 7.07% in 2024. ROA indicates the company's overall profitability by measuring the net income generated per dollar of assets.
3. Return on Total Capital:
- The return on total capital for Knife River Corporation was 19.93% in 2021, slightly decreased to 18.79% in 2022, and then improved to 23.96% in 2023 before decreasing to 22.10% in 2024. This ratio assesses the return generated from all capital sources, including debt and equity.
4. Return on Equity (ROE):
- Knife River Corporation's ROE was 13.62% in 2021, declined to 7.10% in 2022, increased to 14.44% in 2023, and slightly dipped to 13.66% in 2024. ROE measures the return earned on the shareholders' equity investment.
Overall, Knife River Corporation's profitability ratios show fluctuations over the years, with some ratios improving while others fluctuated. It is essential for the company to monitor these ratios consistently to ensure sustained profitability and efficient use of resources.