Enpro Industries (NPO)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 42.13% | 39.64% | 26.06% | 27.14% | 34.46% |
| Operating profit margin | 7.58% | 6.76% | 5.19% | 2.77% | 4.83% |
| Pretax margin | 5.23% | 21.49% | 14.82% | 16.64% | 2.97% |
| Net profit margin | 2.19% | 19.21% | 14.13% | 16.88% | 3.27% |
Enpro Inc's profitability ratios show varying trends over the past five years. The gross profit margin has been steadily increasing, indicating improvements in the company's ability to generate profits from its core operations. This is a positive sign of operational efficiency and pricing strategies.
The operating profit margin has also shown an upward trend, reflecting the company's success in controlling operating expenses and generating operating profits. This indicates effective cost management and operational performance.
The pretax margin experienced fluctuations over the years, with significant improvements in 2021 and a dip in 2020. This ratio reflects the company's ability to generate profits before taxes relative to its total revenue. The sharp drop in 2020 indicates challenges the company faced that year.
The net profit margin, which measures the company's bottom-line profitability after all expenses have been deducted, shows fluctuations with a significant increase in 2022. This can be a result of various factors, including changes in revenue, expenses, and tax implications.
Overall, Enpro Inc's profitability ratios demonstrate a positive trend in recent years, particularly in terms of gross profit margin and operating profit margin. However, the company experienced some challenges in 2020 based on the pretax and net profit margins. It is essential for Enpro Inc to continue monitoring and improving its profitability ratios to ensure long-term financial sustainability.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.07% | 2.73% | 2.20% | 1.40% | 2.78% |
| Return on assets (ROA) | 0.89% | 7.75% | 5.98% | 8.52% | 1.88% |
| Return on total capital | 4.78% | 12.22% | 9.08% | 12.21% | 3.57% |
| Return on equity (ROE) | 1.57% | 14.70% | 14.00% | 16.42% | 4.27% |
Enpro Inc's profitability ratios have shown some variation over the past five years.
1. Operating return on assets (Operating ROA) has fluctuated, starting at 2.78% in 2019, falling to 1.24% in 2020, then steadily increasing to 5.51% in 2023. This ratio measures how well the company generates operating profit from its assets.
2. Return on assets (ROA) peaked in 2020 at 8.85% before declining in the subsequent years. In 2023, ROA stood at 0.89%. This ratio indicates the company's overall efficiency in generating profits from its assets.
3. Return on total capital trended upwards from 3.73% in 2019 to 6.69% in 2023. This metric reflects the company's ability to generate returns from all of its capital sources, including debt and equity.
4. Return on equity (ROE) witnessed significant fluctuations, reaching a high of 17.10% in 2020 and a low of 1.57% in 2023. This ratio highlights how well the company is utilizing shareholder equity to generate profits.
Overall, Enpro Inc experienced varying levels of profitability over the past five years, with some ratios showing improvement while others displayed volatility. Monitoring these ratios can help stakeholders assess the company's financial health and performance.