MaxLinear Inc (MXL)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 54.03% | 55.63% | 58.00% | 55.56% | 44.46% |
| Operating profit margin | -61.95% | -5.51% | 16.09% | 7.31% | -21.13% |
| Pretax margin | -66.21% | -9.20% | 15.55% | 5.36% | -24.00% |
| Net profit margin | -68.01% | -10.55% | 11.16% | 4.70% | -20.60% |
MaxLinear Inc has shown an improving trend in its gross profit margin, with an increase from 44.46% in 2020 to 58.00% in 2022, indicating a strong ability to generate profit from its core business activities. However, there was a slight decline to 55.63% in 2023 and 54.03% in 2024.
In terms of operating profit margin, the company experienced significant fluctuations over the years. After a negative margin of -21.13% in 2020, MaxLinear Inc managed to turn this around and achieve positive margins of 7.31% in 2021 and 16.09% in 2022. However, there was a sharp decline to -5.51% in 2023 and a significant drop to -61.95% in 2024, suggesting challenges in controlling operating expenses.
The pretax margin also exhibited volatility, ranging from -24.00% in 2020 to 15.55% in 2022, before plummeting to -66.21% in 2024. This indicates fluctuations in the company's ability to generate profit before accounting for taxes.
In terms of net profit margin, the company struggled with negative margins in 2020 and 2023, with improvements to 4.70% in 2021 and 11.16% in 2022. However, there was a significant decline to -68.01% in 2024, reflecting challenges in maintaining profitability after accounting for all expenses.
Overall, while the company has shown some improvement in gross profit margin and profitability in certain years, the fluctuations in operating profit, pretax profit, and net profit margins indicate a need for better cost management and sustained efforts to enhance overall profitability in the future.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -25.83% | -3.54% | 15.27% | 6.21% | -9.89% |
| Return on assets (ROA) | -28.36% | -6.77% | 10.60% | 4.00% | -9.64% |
| Return on total capital | -34.94% | -6.57% | 23.05% | 7.65% | -13.50% |
| Return on equity (ROE) | -47.49% | -10.66% | 18.49% | 8.58% | -25.21% |
MaxLinear Inc's profitability ratios reflect varying levels of performance over the five-year period from December 31, 2020, to December 31, 2024.
1. Operating return on assets (Operating ROA) improved significantly from -9.89% in 2020 to 15.27% in 2022, indicating that the company generated a higher operating profit relative to its assets during this period. However, a decline was observed in 2023 and 2024, indicating a decrease in operating efficiency.
2. Return on assets (ROA) exhibited a similar trend, starting at -9.64% in 2020, increasing to 10.60% in 2022, and then declining to -28.36% in 2024. This ratio indicates the company's ability to generate profit from its total assets, with fluctuations over the years.
3. Return on total capital peaked at 23.05% in 2022, signifying the highest return relative to the company's total capital during the period. However, a sharp decline to -34.94% in 2024 indicates a substantial decrease in profitability relative to the total capital employed by the company.
4. Return on equity (ROE) demonstrated a similar pattern, with the highest return of 18.49% in 2022. The ROE reflects the return generated for the shareholders' equity investment, with the company experiencing significant fluctuations in profitability over the five-year period.
In summary, MaxLinear Inc's profitability ratios show a mix of improvement and decline over the years, suggesting fluctuations in the company's operational efficiency and profitability performance. Further analysis and investigation would be needed to understand the underlying factors driving these changes and to assess the company's overall financial health.