Materion Corporation (MTRN)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 21.37% | 19.81% | 18.86% | 16.40% | 22.21% |
| Operating profit margin | 8.35% | 6.90% | 5.13% | 0.70% | 5.96% |
| Pretax margin | 6.60% | 5.94% | 5.14% | 0.70% | 5.54% |
| Net profit margin | 5.86% | 4.95% | 4.82% | 1.32% | 4.51% |
Materion Corp's profitability has shown a positive trend over the past five years based on the analysis of key profitability ratios. The gross profit margin has been fluctuating, but increased to 20.96% in 2023 from 18.78% in 2021. This indicates the company's ability to generate profits from its core operations after accounting for the cost of goods sold.
The operating profit margin has also been on an upward trajectory, reaching 8.41% in 2023 compared to 5.17% in 2021. This indicates Materion's efficiency in managing its operating expenses and converting revenue into operating profit.
Moreover, the pretax margin, which reflects the company's profitability before accounting for taxes, has steadily increased over the years, reaching 6.48% in 2023 from 5.12% in 2021. This shows an improvement in Materion's overall profitability performance.
Finally, the net profit margin, which measures the company's bottom-line profitability after all expenses, including taxes, has shown consistent improvement, reaching 5.75% in 2023 compared to 4.80% in 2021. This suggests that Materion Corp has been able to effectively control costs and enhance its profitability.
Overall, Materion Corp's profitability ratios indicate a positive trend, demonstrating the company's ability to enhance operational efficiency and generate higher profits over the years.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.74% | 7.08% | 4.80% | 0.78% | 7.85% |
| Return on assets (ROA) | 5.43% | 5.08% | 4.51% | 1.46% | 5.94% |
| Return on total capital | 10.72% | 9.89% | 6.68% | 1.19% | 10.90% |
| Return on equity (ROE) | 10.81% | 10.75% | 10.06% | 2.36% | 8.27% |
Materion Corp's profitability ratios show a mixed performance over the past five years. The operating return on assets (Operating ROA) has been steadily increasing from 2.59% in 2020 to 7.95% in 2023, indicating that the company is generating more operating income from its assets. This is a positive sign as it shows improved operational efficiency.
Similarly, the return on assets (ROA) has also shown a generally upward trend, reaching 5.43% in 2023. This ratio reflects the company's ability to generate profits from its total assets. The improvement in ROA suggests that Materion Corp is becoming more effective in utilizing its assets to generate earnings.
The return on total capital has also increased over the years, reaching 10.58% in 2023. This ratio indicates the company's overall profitability in relation to its total capital, including debt and equity. The rising trend suggests that Materion Corp is generating higher returns relative to the total capital invested in the business.
Finally, the return on equity (ROE) has shown fluctuation but has generally improved, reaching 10.81% in 2023. ROE measures the return on shareholders' equity, indicating how well the company is utilizing shareholders' funds to generate profits. The increasing trend in ROE implies that Materion Corp is delivering better returns to its equity investors.
Overall, Materion Corp's profitability ratios demonstrate a positive trend over the years, indicating improving efficiency and profitability in utilizing assets and capital to generate returns for both investors and shareholders.