Materion Corporation (MTRN)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 19.77% | 21.37% | 19.81% | 18.86% | 16.40% |
| Operating profit margin | 2.86% | 8.35% | 6.90% | 5.13% | 0.70% |
| Pretax margin | 0.90% | 6.60% | 5.94% | 5.14% | 0.70% |
| Net profit margin | 0.36% | 5.86% | 4.95% | 4.82% | 1.32% |
Materion Corporation has exhibited an improving trend in terms of profitability ratios over the past five years.
- The Gross Profit Margin has increased steadily from 16.40% in December 2020 to 19.77% in December 2024, indicating the company's ability to generate more profit from its revenue after accounting for the cost of goods sold.
- The Operating Profit Margin also shows an upward trajectory, rising from 0.70% in December 2020 to 2.86% in December 2024. This indicates that Materion has been able to improve its efficiency in managing operating expenses and generate more profit from its core business operations.
- The Pretax Margin has shown fluctuations over the years but has generally increased from 0.70% in December 2020 to 0.90% in December 2024. This ratio reflects Materion's ability to control expenses before accounting for taxes and shows the company's performance in terms of profitability.
- The Net Profit Margin has also witnessed growth, climbing from 1.32% in December 2020 to 0.36% in December 2024. This ratio indicates the portion of revenue that translates into net income after deducting all expenses, including taxes, and shows Materion's overall profitability performance.
Overall, Materion Corporation has shown improvements in its profitability margins over the years, which is a positive indicator of the company's financial performance and efficiency in managing its operations.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 2.78% | 7.74% | 7.08% | 4.80% | 0.78% |
| Return on assets (ROA) | 0.35% | 5.43% | 5.08% | 4.51% | 1.46% |
| Return on total capital | 3.70% | 10.72% | 9.89% | 6.68% | 1.19% |
| Return on equity (ROE) | 0.68% | 10.81% | 10.75% | 10.06% | 2.36% |
Materion Corporation's profitability ratios show varying trends over the years.
1. Operating return on assets (Operating ROA) has shown an increasing trend from 0.78% in 2020 to 7.74% in 2023, indicating the company's ability to generate operating profits relative to its total assets. However, there was a slight dip to 2.78% in 2024.
2. Return on assets (ROA) has also displayed an upward trend, increasing from 1.46% in 2020 to 5.43% in 2023, before dropping significantly to 0.35% in 2024. This metric measures the company's overall profitability in utilizing its assets.
3. Return on total capital has shown a similar trend to ROA, with an increase from 1.19% in 2020 to 10.72% in 2023, followed by a decrease to 3.70% in 2024. This ratio reflects the company's ability to generate returns for both equity and debt holders.
4. Return on equity (ROE) has exhibited an upward trajectory from 2.36% in 2020 to 10.81% in 2023, before dropping sharply to 0.68% in 2024. ROE indicates the company's profitability in relation to shareholders' equity.
Overall, Materion Corporation has shown positive profitability trends in the analyzed years, with some fluctuations in the most recent period. It is important for the company to assess the causes of these fluctuations and take appropriate measures to sustain and improve profitability in the future.