National Presto Industries Inc (NPK)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 19.79% | 17.14% | 18.10% | 24.08% | 23.31% |
| Operating profit margin | 10.28% | 6.88% | 8.44% | 15.94% | 15.03% |
| Pretax margin | 12.45% | 8.07% | 9.12% | 17.01% | 17.50% |
| Net profit margin | 10.14% | 6.44% | 7.21% | 13.32% | 13.69% |
National Presto Industries Inc's profitability ratios have shown fluctuations over the past five years.
Starting with the gross profit margin, there has been a gradual improvement from 17.14% in 2022 to 19.79% in 2023. This indicates that the company has been able to control its direct costs involved in producing goods more efficiently in the most recent year.
Moving on to the operating profit margin, there has been a significant improvement from 6.88% in 2022 to 10.28% in 2023. This shows that the company has been able to manage its operating expenses more effectively and generate higher profits from its core business activities.
The pretax margin also experienced a notable increase from 8.07% in 2022 to 12.45% in 2023. This suggests that National Presto Industries Inc has been more successful in managing its overall expenses and generating higher profits before accounting for taxes.
Finally, the net profit margin saw a substantial increase from 6.44% in 2022 to 10.14% in 2023. This improvement indicates that after considering all expenses, including taxes, the company was able to retain a higher percentage of revenue as net profit in the most recent year.
Overall, National Presto Industries Inc's profitability ratios have shown positive trends in 2023 compared to the previous years, indicating improved efficiency in cost management and profitability.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.95% | 5.37% | 7.14% | 12.97% | 11.31% |
| Return on assets (ROA) | 7.84% | 5.03% | 6.10% | 10.84% | 10.29% |
| Return on total capital | 9.83% | 6.36% | 8.40% | 15.01% | 12.60% |
| Return on equity (ROE) | 9.70% | 5.95% | 7.17% | 12.54% | 11.47% |
National Presto Industries Inc has shown consistent profitability over the past five years, as evident from its profitability ratios. The Operating ROA has increased from 5.37% in 2022 to 7.95% in 2023, indicating the company's ability to generate operating income from its assets has improved. ROA has also improved steadily, reaching 7.84% in 2023. This indicates that the company is generating more profit relative to its total assets.
Furthermore, the Return on Total Capital has also exhibited an upward trend, increasing from 6.36% in 2022 to 9.83% in 2023. This indicates that National Presto Industries Inc is effectively utilizing both debt and equity capital to generate returns for its investors. The Return on Equity (ROE) has followed a similar pattern, showing an increase from 5.95% in 2022 to 9.7% in 2023, indicating improved profitability from the shareholders' perspective.
Overall, the profitability ratios suggest that National Presto Industries Inc has been successful in managing its assets and capital to generate increasing returns for its stakeholders. The company's ability to maintain and enhance its profitability ratios over the years reflects positively on its operational efficiency and financial performance.