Merit Medical Systems Inc (MMSI)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 47.49% | 47.21% | 45.41% | 45.41% | 42.14% |
| Operating profit margin | 11.49% | 10.02% | 7.66% | 5.70% | -0.16% |
| Pretax margin | 11.07% | 9.06% | 7.23% | 5.04% | -1.39% |
| Net profit margin | 8.88% | 7.63% | 6.52% | 4.53% | -1.03% |
Looking at the profitability ratios of Merit Medical Systems Inc over the five-year period from December 31, 2020, to December 31, 2024, we can observe an overall positive trend in the company's profitability.
1. Gross Profit Margin: The company's gross profit margin has been gradually increasing over the period, from 42.14% in 2020 to 47.49% in 2024. This indicates that Merit Medical has been able to improve its efficiency in producing goods and controlling production costs.
2. Operating Profit Margin: Merit Medical's operating profit margin has shown a significant improvement, starting from -0.16% in 2020 and reaching 11.49% in 2024. This demonstrates the company's ability to effectively manage its operating expenses and generate profits from its core business operations.
3. Pretax Margin: The pretax margin also displays a positive trend, increasing from -1.39% in 2020 to 11.07% in 2024. This ratio reflects the company's ability to generate profits before accounting for taxes, implying improved operational performance and cost management.
4. Net Profit Margin: The net profit margin has shown steady growth, from -1.03% in 2020 to 8.88% in 2024. This ratio indicates Merit Medical's ability to translate its revenue into net income, reflecting the company's overall profitability and efficiency in managing its costs and expenses.
Overall, the increasing trend in all profitability ratios signifies that Merit Medical Systems Inc has been able to enhance its profitability, operational efficiency, and cost control measures over the five-year period, which is a positive indicator for the company's financial health and 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) | 6.44% | 5.33% | 5.26% | 3.70% | -0.09% |
| Return on assets (ROA) | 4.98% | 4.06% | 4.48% | 2.94% | -0.59% |
| Return on total capital | 7.38% | 6.30% | 6.68% | 4.64% | -0.25% |
| Return on equity (ROE) | 8.73% | 7.85% | 6.51% | 4.66% | -1.03% |
Based on the provided data, we can observe an improvement in Merit Medical Systems Inc's profitability ratios over the period from December 31, 2020, to December 31, 2024.
1. Operating return on assets (Operating ROA) increased from -0.09% in 2020 to 6.44% in 2024. This suggests that the company's operating income generated from its assets has been steadily improving.
2. Return on assets (ROA) saw an increase from -0.59% in 2020 to 4.98% in 2024, indicating that the overall profitability generated from all assets has also improved over the period.
3. Return on total capital increased from -0.25% in 2020 to 7.38% in 2024, showing that the return generated from the total capital employed by the company has been increasing.
4. Return on equity (ROE) rose from -1.03% in 2020 to 8.73% in 2024, highlighting an enhancement in the return generated for the shareholders' equity over the years.
Overall, the upward trend in these profitability ratios reflects positively on the company's operational efficiency and its ability to generate profits from its assets and capital.