LCI Industries (LCII)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 23.51% | 20.51% | 24.45% | 23.32% | 25.25% |
| Operating profit margin | 5.83% | 3.26% | 10.62% | 8.91% | 7.97% |
| Pretax margin | 5.06% | 2.19% | 10.09% | 8.54% | 7.49% |
| Net profit margin | 3.82% | 1.70% | 7.59% | 6.43% | 5.67% |
The profitability ratios of LCI Industries have shown some fluctuations over the past five years. The gross profit margin has ranged from 20.51% to 25.25%, with a slight decrease in 2023 followed by an improvement in 2024.
The operating profit margin has varied more significantly, ranging from 3.26% to 10.62%. There was a notable decrease in 2023, but it rose again in 2024, indicating some volatility in the company's operational efficiency.
The pretax margin has also experienced fluctuations, with the lowest point at 2.19% in 2023 and a peak of 10.09% in 2022. This suggests varying levels of pre-tax profitability over the period.
Lastly, the net profit margin has shown similar trends, ranging from 1.70% to 6.43%. While there was a significant drop in 2023, the margin improved in 2024. Overall, LCI Industries' profitability ratios reflect a mixed performance, indicating the company's ability to generate profits amidst changing market conditions.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.54% | 4.17% | 17.03% | 12.12% | 9.70% |
| Return on assets (ROA) | 4.94% | 2.17% | 12.16% | 8.75% | 6.89% |
| Return on total capital | 0.00% | 9.11% | 40.05% | 36.46% | 24.54% |
| Return on equity (ROE) | 10.30% | 4.74% | 28.60% | 26.33% | 17.44% |
From the provided data, we can analyze the profitability ratios of LCI Industries over the five-year period.
1. Operating Return on Assets (Operating ROA):
- LCI Industries' Operating ROA has shown fluctuations over the years, ranging from a low of 4.17% in 2023 to a high of 17.03% in 2022. This ratio measures the company's operating income generated for each dollar of assets and indicates the efficiency of asset utilization in generating operating profits.
2. Return on Assets (ROA):
- The ROA for LCI Industries has also varied, with a substantial increase from 2.17% in 2023 to 4.94% in 2024. ROA evaluates the company's overall profitability by measuring the return generated on all its assets, providing insights into management's effectiveness in utilizing assets to generate profits.
3. Return on Total Capital:
- The Return on Total Capital shows a notable decrease from 40.05% in 2022 to 0.00% in 2024. This metric assesses the company's efficiency in generating returns for both equity and debt holders, reflecting the overall performance and profitability of the business.
4. Return on Equity (ROE):
- LCI Industries' ROE has exhibited fluctuations, with the highest level at 28.60% in 2022 and the lowest at 4.74% in 2023. ROE measures the return earned on shareholders' equity investment, indicating the company's ability to generate profits from the equity capital invested by shareholders.
In summary, the trend analysis of LCI Industries' profitability ratios highlights the company's varying performance in effectively utilizing assets and generating returns for both shareholders and capital providers. Fluctuations in these ratios indicate changes in operational efficiency and effectiveness in generating profits over the years. Additional analysis would be needed to understand the underlying factors driving these fluctuations and to assess the company's overall profitability and financial health.