Littelfuse Inc (LFUS)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 35.95% | 38.10% | 40.05% | 37.11% | 34.67% |
| Operating profit margin | 7.25% | 15.27% | 19.92% | 18.54% | 11.23% |
| Pretax margin | 6.93% | 13.91% | 17.62% | 16.40% | 11.15% |
| Net profit margin | 4.57% | 10.98% | 14.85% | 13.64% | 8.99% |
Littelfuse Inc's profitability ratios have shown some fluctuations over the past five years.
- The gross profit margin has generally increased from 34.67% in 2020 to 40.05% in 2022, indicating improved efficiency in production and sales. However, there was a slight dip to 35.95% in 2024, suggesting potential challenges in managing production costs or pricing strategy.
- The operating profit margin experienced significant growth from 11.23% in 2020 to 19.92% in 2022, reflecting effective cost management and operational improvements. However, there was a considerable drop to 7.25% in 2024, signaling potential operational challenges impacting profitability.
- The pretax margin also demonstrated growth from 11.15% in 2020 to 17.62% in 2022 but decreased to 6.93% in 2024. This indicates fluctuations in earnings before tax in relation to revenue, which may be influenced by various factors such as operating expenses and non-operating income.
- The net profit margin showed a similar trend, increasing from 8.99% in 2020 to 14.85% in 2022 before declining to 4.57% in 2024. This implies fluctuating profitability after accounting for all expenses, including taxes, which could be due to changes in cost structures, pricing strategies, or other operational factors.
In summary, while Littelfuse Inc has shown improvements in profitability margins over the years, the declining trend in certain ratios in the most recent year may warrant a closer examination of the company's operations and financial performance.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.08% | 9.03% | 12.83% | 12.24% | 5.91% |
| Return on assets (ROA) | 2.57% | 6.49% | 9.56% | 9.00% | 4.73% |
| Return on total capital | 7.90% | 14.55% | 21.22% | 18.99% | 11.33% |
| Return on equity (ROE) | 4.15% | 10.46% | 16.88% | 14.99% | 8.08% |
Littelfuse Inc's profitability ratios indicate fluctuations over the years. The Operating return on assets (Operating ROA) has shown improvement from 5.91% in 2020 to 12.83% in 2022, before declining to 9.03% in 2023. However, there was a significant drop to 4.08% in 2024, indicating a potential decrease in operational efficiency.
Similarly, the Return on assets (ROA) increased from 4.73% in 2020 to 9.56% in 2022, then decreased to 6.49% in 2023 and further to 2.57% in 2024. This indicates that the company's ability to generate profits from its assets has been volatile.
The Return on total capital improved from 11.33% in 2020 to 21.22% in 2022, before declining to 7.90% in 2024. This metric reflects the company's efficiency in generating returns from its total capital employed.
Lastly, the Return on equity (ROE) experienced a similar trend, increasing from 8.08% in 2020 to 16.88% in 2022, then decreasing to 4.15% in 2024. This ratio measures the return generated on shareholders' equity.
Overall, Littelfuse Inc's profitability ratios show a mix of improvement and decline over the years, suggesting fluctuations in operational efficiency and profitability. Further analysis would be needed to understand the factors driving these changes and to assess the company's long-term financial performance.