Mettler-Toledo International Inc (MTD)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 59.16% | 58.88% | 58.41% | 58.38% | 57.87% |
| Operating profit margin | 27.64% | 28.49% | 26.61% | 25.07% | 23.68% |
| Pretax margin | 25.70% | 27.31% | 25.53% | 24.27% | 22.65% |
| Net profit margin | 20.82% | 22.26% | 20.68% | 19.54% | 18.65% |
Mettler-Toledo International, Inc. has consistently maintained healthy profitability ratios over the past five years. The company's gross profit margin has shown a slight uptrend, ranging from 57.87% in 2019 to 59.16% in 2023, indicating efficient cost management and pricing strategies.
In terms of operating profit margin, Mettler-Toledo has demonstrated strong profitability levels, with figures consistently above 24% for the past five years. The trend shows a slight fluctuation, peaking at 28.73% in 2022 and slightly dipping to 28.50% in 2023.
The pretax margin, which reflects the company's profitability before considering taxes, has also been solid, ranging from 22.65% in 2019 to 27.31% in 2022. It decreased slightly to 25.70% in 2023. This trend indicates effective operational performance and cost control measures.
Moreover, Mettler-Toledo's net profit margin, representing the portion of each dollar of revenue retained as profit after all expenses are deducted, has remained stable and healthy. The company has shown growth in net profit margin from 18.65% in 2019 to 22.26% in 2022 before settling at 20.82% in 2023.
Overall, the company's consistency in maintaining robust profitability margins reflects its ability to generate profits efficiently across its operations and manage costs effectively.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 31.20% | 31.97% | 29.74% | 27.48% | 25.55% |
| Return on assets (ROA) | 23.51% | 24.98% | 23.11% | 21.42% | 20.12% |
| Return on total capital | 60.45% | 58.24% | 56.65% | 50.25% | 43.40% |
| Return on equity (ROE) | — | 3,519.15% | 448.59% | 213.23% | 133.35% |
Mettler-Toledo International, Inc. has shown consistent improvement in its profitability over the years as indicated by its profitability ratios.
Operating return on assets (Operating ROA) has been increasing steadily from 26.11% in 2019 to 32.18% in 2023. This metric measures the company's ability to generate operating profit from its assets, and the increasing trend suggests that the company is becoming more efficient in utilizing its assets to generate profits.
Return on assets (ROA) has shown a similar upward trajectory, increasing from 20.12% in 2019 to 23.51% in 2023. This ratio reflects the company's overall profitability in relation to its total assets, and the consistent improvement indicates that Mettler-Toledo is effectively managing its assets to generate profits.
Return on total capital has also demonstrated a positive trend, rising from 42.55% in 2019 to 55.92% in 2023. This ratio evaluates the company's profitability in relation to the total capital employed, including debt and equity, and the increasing values suggest that the company is generating significant returns on its total invested capital.
Return on equity (ROE) has shown substantial growth over the years, from 133.35% in 2019 to an exceptionally high 3,519.15% in 2022. While the drastic increase in 2022 may warrant further investigation to ensure its accuracy, the overall trend indicates that Mettler-Toledo is efficiently using shareholders' equity to generate profits.
In conclusion, the profitability ratios of Mettler-Toledo International, Inc. reflect a company that has been consistently improving its operational efficiency and generating strong returns for its shareholders over the years.