Mueller Water Products (MWA)
Profitability ratios
Return on sales
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 34.91% | 29.75% | 29.20% | 32.27% | 34.04% |
| Operating profit margin | 13.82% | 9.99% | 8.95% | 11.85% | 12.11% |
| Pretax margin | 12.43% | 8.54% | 7.90% | 8.54% | 9.76% |
| Net profit margin | 8.82% | 6.70% | 6.14% | 6.34% | 7.47% |
The analysis of Mueller Water Products' profitability ratios over the period from September 2020 to September 2024 reveals notable trends and fluctuations across different metrics.
Gross Profit Margin experienced variability, beginning at 34.04% in September 2020, decreasing to 32.27% in September 2021 and further to 29.20% in September 2022. A slight improvement was observed in September 2023, reaching 29.75%, followed by a significant increase to 34.91% in September 2024. The overall pattern indicates initial compression of gross margins during 2021 and 2022, with a subsequent recovery and expansion in 2024, suggesting improvements in cost management or pricing strategies in the latter period.
Operating Profit Margin showed a decline from 12.11% in September 2020 to 8.95% in September 2022, reflecting increased operating expenses or margin pressures. There was a modest recovery in September 2023 to 9.99%, and a more substantial increase to 13.82% in September 2024. This upward trend in operating margins suggests enhanced operational efficiency or favorable cost control measures undertaken in the recent year.
Pretax Margin followed a similar pattern, decreasing from 9.76% in September 2020 to 7.90% in September 2022, and then gradually recovering to 8.54% in September 2023, culminating in a notable increase to 12.43% in September 2024. The significant rise in pretax margin in 2024 indicates improved earnings before taxes, likely driven by higher operating income, reduced non-operating expenses, or both.
Net Profit Margin reflected a downward trend during the initial years, declining from 7.47% in September 2020 to 6.14% in September 2022. A slight recovery occurred in September 2023 to 6.70%, with a marked increase to 8.82% in September 2024. This overall pattern suggests that despite some margin pressures in 2021 and 2022, the company has managed to enhance its bottom-line profitability in recent periods, particularly in 2024.
In summary, Mueller Water Products experienced a challenging profit environment during 2021 and 2022, with margins contracting across all metrics. However, the subsequent years, especially 2024, show a significant recovery and expansion in profitability ratios, indicating improvements in operational efficiency, cost management, or pricing power contributing to enhanced profitability margins.
Return on investment
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 11.11% | 8.47% | 7.45% | 8.68% | 8.37% |
| Return on assets (ROA) | 7.08% | 5.68% | 5.11% | 4.64% | 5.16% |
| Return on total capital | 14.26% | 18.82% | 19.35% | 17.08% | 18.84% |
| Return on equity (ROE) | 14.31% | 12.02% | 11.44% | 10.13% | 11.24% |
Mueller Water Products' profitability ratios over the period from September 2020 to September 2024 exhibit notable variations that reflect the company's evolving financial performance.
The Operating Return on Assets (Operating ROA) has demonstrated an overall upward trend, increasing from 8.37% in September 2020 to 11.11% in September 2024. This suggests an improvement in the company's efficiency in generating operating income relative to its assets, especially noticeable in the latest period. The modest fluctuations within this span indicate stability with a positive momentum in operational efficiency.
In contrast, the overall Return on Assets (ROA) presents a relatively stable pattern with slight fluctuations, starting at 5.16% in September 2020 and rising to 7.08% by September 2024. This indicates a gradual improvement in the company's ability to generate net income from its total assets; however, the growth pace is moderate compared to Operating ROA.
The Return on Total Capital shows some variability. It was highest at 19.35% in September 2022, then declined to 14.26% by September 2024. This decline may reflect increased capital costs, changes in capital structure, or shifts in overall profitability from invested capital sources. The fluctuation indicates a period of relatively strong performance followed by a contraction in profitability relative to total capital.
Finally, the Return on Equity (ROE) has exhibited a generally upward trajectory, rising from 11.24% in September 2020 to 14.31% in September 2024. The steady increase signifies that shareholders have experienced improved returns over time, possibly due to better net income generation relative to shareholders’ equity, alongside possible improvements in financial leverage or operational efficiencies.
Overall, the analysis reveals a positive trend in operational efficiency and shareholder returns, despite some fluctuations in broader profitability measures relative to total capital and assets. The recent data indicates an improving profitability outlook for Mueller Water Products.