Littelfuse Inc (LFUS)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 38.96% | 40.88% | 37.76% | 34.81% | 37.00% |
| Operating profit margin | 15.62% | 20.33% | 18.86% | 11.28% | 13.06% |
| Pretax margin | 14.22% | 17.99% | 16.68% | 11.20% | 11.24% |
| Net profit margin | 11.23% | 15.15% | 13.88% | 9.03% | 9.42% |
Littelfuse Inc's profitability ratios have shown varying trends over the past five years. The gross profit margin, which reflects the company's ability to generate revenue after accounting for the cost of goods sold, has fluctuated within a range of 34.81% to 40.88%. In recent years, there has been a slight decrease in the gross profit margin, which may indicate challenges in controlling production costs or pricing pressures.
The operating profit margin, a measure of efficiency in managing operating expenses relative to revenue, has also shown fluctuations. While it increased from 2019 to 2022, reaching a peak of 20.33%, there was a slight decline in 2023 to 15.62%. This could suggest changes in the efficiency of the company's operations or the impact of external factors on profitability.
The pretax margin, indicating the company's profitability before taxes, has followed a similar trend to the operating profit margin, with fluctuations between 11.20% and 17.99%. A decrease in 2023 compared to the previous year may imply changes in cost structures or income levels that impacted profitability.
Lastly, the net profit margin, which reflects the percentage of revenue left as profit after all expenses have been deducted, has shown volatility, ranging from 9.03% to 15.15%. Despite fluctuations, the net profit margin has generally been positive, indicating that the company has been able to generate profits from its operations.
Overall, Littelfuse Inc's profitability ratios suggest that the company has experienced fluctuations in its profitability over the past five years, possibly influenced by various internal and external factors. Further analysis of the company's financial performance and industry trends may provide additional insights into its profitability trends.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.03% | 12.83% | 12.24% | 5.91% | 7.53% |
| Return on assets (ROA) | 6.49% | 9.56% | 9.00% | 4.73% | 5.43% |
| Return on total capital | 11.04% | 15.25% | 14.35% | 7.94% | 8.90% |
| Return on equity (ROE) | 10.46% | 16.88% | 14.99% | 8.08% | 9.30% |
Littelfuse Inc's profitability ratios have shown a fluctuating trend over the past five years.
1. Operating return on assets (Operating ROA) indicates how efficiently the company is generating operating income from its assets. The ratio has varied from a low of 5.91% in 2020 to a high of 12.83% in 2022, with a value of 9.03% in 2023. This suggests that the company's ability to generate operating income from its assets has been somewhat inconsistent.
2. Return on assets (ROA) measures the overall profitability of the company in generating net income from its total assets. Littelfuse's ROA has fluctuated between 4.73% in 2020 to 9.56% in 2022, with a value of 6.49% in 2023. The varying ratios indicate that the company's profitability in relation to its total assets has not shown a consistent upward or downward trend.
3. Return on total capital reflects the return the company is generating from all of its capital, including both debt and equity. Littelfuse's return on total capital has ranged from 7.94% in 2020 to 15.25% in 2022, with a value of 11.04% in 2023. This ratio indicates the overall return to both debt and equity holders, and the fluctuating trend suggests varying efficiency in utilizing all capital sources.
4. Return on equity (ROE) measures the return generated on the shareholders' equity investment. Littelfuse's ROE has fluctuated between 8.08% in 2020 to 16.88% in 2022, with a value of 10.46% in 2023. The varying ratios imply different levels of profitability for equity investors over the years.
Overall, the profitability ratios of Littelfuse Inc show inconsistency in performance over the past five years, with fluctuations in the company's ability to generate returns from assets, total capital, and equity. Further analysis into the company's operations and financial management practices may be needed to understand the reasons behind these fluctuations.