LCI Industries (LCII)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 20.51% | 24.45% | 23.32% | 25.25% | 22.74% |
| Operating profit margin | 3.26% | 10.62% | 8.91% | 7.97% | 8.44% |
| Pretax margin | 2.19% | 10.09% | 8.54% | 7.49% | 8.07% |
| Net profit margin | 1.70% | 7.59% | 6.43% | 5.67% | 6.18% |
LCI Industries' profitability ratios show varying trends over the past five years. The gross profit margin has fluctuated, declining from 25.25% in 2020 to 20.51% in 2023. This could indicate challenges in maintaining a strong margin on products and services sold.
The operating profit margin saw a significant decrease from 10.62% in 2022 to 3.26% in 2023, suggesting a decline in efficiency in managing operating expenses. This could be a concern for the company's ability to generate profit from its core operations.
Similarly, the pretax margin and net profit margin also decreased over the period, indicating that the company may be facing challenges in controlling costs and increasing profitability. The pretax margin fell from 10.09% in 2022 to 2.19% in 2023, while the net profit margin declined from 7.59% in 2022 to 1.70% in 2023.
Overall, LCI Industries' profitability ratios show a mixed performance, with declines in key margins over the past year. It may be beneficial for the company to closely monitor and possibly reevaluate its cost structure and revenue generation strategies to improve profitability in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.17% | 17.03% | 12.12% | 9.70% | 10.75% |
| Return on assets (ROA) | 2.17% | 12.16% | 8.75% | 6.89% | 7.87% |
| Return on total capital | 5.61% | 22.33% | 17.14% | 13.69% | 14.16% |
| Return on equity (ROE) | 4.74% | 28.60% | 26.33% | 17.44% | 18.30% |
LCI Industries' profitability ratios have shown some fluctuations over the past five years. The Operating return on assets (Operating ROA) has ranged from 4.17% to 17.03% during this period, indicating variability in the company's ability to generate operating profits from its total assets.
Similarly, the Return on assets (ROA) has fluctuated between 2.17% and 12.16%, suggesting inconsistency in the company's overall profitability in relation to its total assets over the years.
The Return on total capital has also displayed a varying trend, with values ranging from 5.60% to 22.12% during the same period. This metric reflects the company's ability to generate returns from both equity and debt capital invested in the business.
Lastly, the Return on equity (ROE) has shown fluctuations between 4.74% and 28.60%, highlighting the company's ability to generate profits for its shareholders from their equity investment.
Overall, the profitability ratios of LCI Industries indicate some level of volatility in its ability to generate returns from assets, total capital, and equity over the past five years. Further analysis and investigation into the company's financial performance and operational efficiency may be warranted to better understand the drivers behind these fluctuations.