Minerals Technologies Inc (MTX)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 24.05% | 22.41% | 24.52% | 26.05% | 25.24% |
| Operating profit margin | 8.15% | 10.35% | 12.95% | 12.07% | 11.95% |
| Pretax margin | 5.11% | 7.44% | 11.04% | 8.79% | 8.91% |
| Net profit margin | 3.99% | 5.89% | 9.03% | 7.22% | 7.60% |
Minerals Technologies, Inc.'s profitability ratios have shown a fluctuating trend over the past five years. The gross profit margin, which measures the percentage of revenue retained after accounting for the cost of goods sold, increased from 24.60% in 2019 to 24.03% in 2021 before experiencing a slight dip to 21.88% in 2022 and then recovering to 23.37% in 2023.
The operating profit margin, indicating the company's ability to generate profit from its core operations, has also varied. It stood at 13.00% in 2019, declined to 11.88% in 2022, and then improved to 12.90% in 2023. Similarly, the pretax margin, reflecting the percentage of profit before taxes earned on each dollar of revenue, fluctuated notably, decreasing from 8.89% in 2019 to 5.16% in 2023 after experiencing fluctuations in between.
The net profit margin, a key measure of overall profitability, displayed a similar trend. It decreased from 7.41% in 2019 to 3.88% in 2023, with fluctuations in between. These margin analyses indicate that while Minerals Technologies has shown some improvements in certain profitability ratios in 2023 compared to the previous years, there are areas that may require further attention to enhance overall profitability and efficiency.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.13% | 6.31% | 6.99% | 5.85% | 6.71% |
| Return on assets (ROA) | 2.51% | 3.59% | 4.87% | 3.50% | 4.26% |
| Return on total capital | 6.52% | 7.90% | 9.62% | 7.31% | 8.92% |
| Return on equity (ROE) | 5.09% | 7.74% | 10.68% | 7.69% | 9.46% |
Minerals Technologies, Inc. has shown a consistent performance in terms of profitability over the past five years, as evidenced by various key profitability ratios.
1. Operating return on assets (Operating ROA) has seen a gradual increase from 7.48% in 2019 to 8.36% in 2023, indicating that the company is generating more operating income per dollar of assets over time.
2. Return on assets (ROA) experienced some fluctuations but shows a declining trend overall, from 4.26% in 2019 to 2.51% in 2023. This suggests that the company's overall efficiency in generating profits from its total assets has decreased slightly.
3. Return on total capital has generally improved from 10.07% in 2019 to 10.66% in 2023, indicating that the company is generating higher returns for all capital invested, including both equity and debt.
4. Return on equity (ROE) has shown a similar trend to ROA, with fluctuations but an overall decline from 9.46% in 2019 to 5.09% in 2023. This indicates that shareholders' returns have decreased over the period.
In summary, Minerals Technologies, Inc. has maintained a solid level of profitability, as reflected in its improved operating return on assets and return on total capital. However, the decline in ROA and ROE signifies a potential efficiency concern and decreasing returns for shareholders, which may warrant further analysis and strategic considerations.