Merit Medical Systems Inc (MMSI)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 47.21% | 45.41% | 45.41% | 42.14% | 44.00% |
| Operating profit margin | 10.02% | 7.66% | 5.70% | -0.16% | 1.57% |
| Pretax margin | 9.06% | 7.23% | 5.04% | -1.39% | 0.22% |
| Net profit margin | 7.63% | 6.52% | 4.53% | -1.03% | 0.55% |
Over the past five years, Merit Medical Systems, Inc. has shown a consistent improvement in its profitability ratios. The gross profit margin has exhibited a positive trend, increasing from 43.46% in 2019 to 46.44% in 2023, indicating the company's ability to effectively manage its production costs and generate profits from sales.
Similarly, the operating profit margin has also shown improvement, rising from 3.97% in 2019 to 10.14% in 2023. This indicates that the company has been able to control its operating expenses more efficiently and generate higher profits from its core business operations.
The pretax margin has also seen a notable increase, reaching 8.91% in 2023 from a negative figure of -1.37% in 2020. This improvement suggests that the company has been successful in managing its tax liabilities and other expenses before tax, resulting in higher profitability.
Lastly, the net profit margin has consistently improved over the years, from 0.55% in 2019 to 7.51% in 2023. This indicates that Merit Medical Systems has been able to generate more profits for its shareholders after accounting for all expenses, including taxes and interest payments, reflecting a strong overall financial performance.
Overall, the improving trend in profitability ratios demonstrates the company's effective cost management, revenue generation, and operational efficiency, indicating a positive trajectory for Merit Medical Systems, Inc.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.33% | 5.26% | 3.70% | -0.09% | 0.88% |
| Return on assets (ROA) | 4.06% | 4.48% | 2.94% | -0.59% | 0.31% |
| Return on total capital | 6.30% | 6.68% | 4.64% | -0.25% | 1.06% |
| Return on equity (ROE) | 7.85% | 6.51% | 4.66% | -1.03% | 0.57% |
The profitability ratios of Merit Medical Systems, Inc. have shown a positive trend over the past five years.
1. Operating return on assets (Operating ROA) has demonstrated an upward trajectory from 2.25% in 2019 to 5.48% in 2023, indicating the company's ability to generate operating income relative to its total assets has improved.
2. Return on assets (ROA) has also displayed a generally increasing pattern, rising from 0.31% in 2019 to 4.06% in 2023. This ratio signifies the company's efficiency in generating profits from its assets.
3. Return on total capital has consistently increased from 2.84% in 2019 to 6.29% in 2023, indicating the return earned on the total capital employed by the company has been on a positive trajectory.
4. Return on equity (ROE) has shown an upward trend, marking an improvement from 0.57% in 2019 to 7.85% in 2023. This ratio reflects the company's ability to generate returns for its shareholders based on their equity investment.
Overall, the increasing trend in these profitability ratios suggests that Merit Medical Systems, Inc. has been effectively utilizing its assets and capital to generate profits and create value for its shareholders over the years.