Masimo Corporation (MASI)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 49.24% | 48.86% | 51.05% | 65.24% | 64.96% |
| Operating profit margin | -13.07% | 6.65% | 10.13% | 22.26% | 22.37% |
| Pretax margin | -14.97% | 4.29% | 9.33% | 22.15% | 23.06% |
| Net profit margin | -14.95% | 3.97% | 6.92% | 18.53% | 21.01% |
Masimo Corporation's profitability ratios have shown fluctuating trends over the past years, indicating some challenges.
- The Gross Profit Margin, which measures profitability after accounting for the cost of goods sold, has been relatively stable, ranging from 48.86% to 65.24%. However, there was a slight dip from 2022 to 2023, possibly indicating a small decrease in efficiency in generating profits from sales.
- The Operating Profit Margin, reflecting the company's ability to generate profits from its core operations, has shown a significant decline from 22.37% in 2020 to -13.07% in 2024. This trend suggests that Masimo Corporation may be facing operational challenges impacting its profitability.
- The Pretax Margin, indicating the company's profitability before taxes, has fluctuated as well, from a high of 23.06% in 2020 to a negative margin of -14.97% in 2024. This suggests that Masimo Corporation's profitability has been under pressure, possibly due to various factors impacting its pre-tax earnings.
- The Net Profit Margin, which measures the company's bottom-line profitability after all expenses have been deducted, has shown a downward trend from 21.01% in 2020 to -14.95% in 2024. This sharp decline indicates that Masimo Corporation's net profitability has been significantly impacted, possibly due to higher expenses or lower revenues.
Overall, Masimo Corporation's profitability ratios highlight a challenging period for the company, with decreasing margins across various metrics. It may be important for the company to closely analyze its cost structures, revenue streams, and operational efficiency to address these declining profitability trends.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -10.16% | 4.49% | 6.54% | 14.62% | 14.94% |
| Return on assets (ROA) | -11.61% | 2.68% | 4.47% | 12.17% | 14.03% |
| Return on total capital | -14.98% | 6.19% | 9.21% | 17.72% | 18.75% |
| Return on equity (ROE) | -28.99% | 5.97% | 10.72% | 14.81% | 17.07% |
Masimo Corporation's profitability ratios have shown a mixed performance over the period from December 31, 2020, to December 31, 2024.
1. Operating return on assets (Operating ROA) saw a slight decrease from 14.94% in 2020 to 14.62% in 2021, followed by a more significant drop to 6.54% in 2022 and further down to 4.49% in 2023. The ratio took a sharp decline to -10.16% in 2024, indicating a significant decrease in operating income generated from its assets.
2. Return on assets (ROA) also displayed a diminishing trend, starting at 14.03% in 2020 and declining to 12.17% in 2021. The ratio experienced a steeper decline to 4.47% in 2022 and further dropped to 2.68% in 2023. In 2024, ROA turned negative at -11.61%, suggesting the company's profitability from its total assets turned into losses.
3. Return on total capital decreased gradually from 18.75% in 2020 to 17.72% in 2021 before more sharply declining to 9.21% in 2022 and further to 6.19% in 2023. The ratio saw a significant negative turn to -14.98% in 2024, signifying a notable decrease in the return generated from the total invested capital.
4. Return on equity (ROE) followed a similar declining trend, starting at 17.07% in 2020 and falling to 14.81% in 2021. The ratio dropped to 10.72% in 2022 and further down to 5.97% in 2023. ROE experienced a drastic negative tumble to -28.99% in 2024, indicating a substantial decrease in the return to the company's equity holders.
Overall, the declining trend in profitability ratios, with increasing negative values by the end of the period, raises concerns about Masimo Corporation's ability to generate profit from its assets, total capital, and equity, signaling potential financial challenges ahead.