Insight Enterprises Inc (NSIT)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 18.28% | 15.75% | 15.41% | 15.66% | 14.78% |
| Operating profit margin | 4.60% | 3.98% | 3.53% | 3.27% | 3.12% |
| Pretax margin | 4.14% | 3.60% | 3.11% | 2.75% | 2.75% |
| Net profit margin | 3.08% | 2.70% | 2.33% | 2.08% | 2.07% |
Insight Enterprises Inc. has shown a positive trend in its profitability ratios over the past five years. Starting with the gross profit margin, the company has improved its efficiency in generating revenue after deducting the cost of goods sold, with the margin increasing from 14.72% in 2019 to 18.19% in 2023.
Moving on to the operating profit margin, which reflects the company's ability to control operating expenses, we see a steady increase from 3.33% in 2019 to 4.72% in 2023. This indicates that Insight Enterprises has been able to improve its operational efficiency over the years.
The pretax margin, showing the percentage of each dollar of revenue that translates into pre-tax profit, has also shown a positive trend. The margin increased from 2.74% in 2019 to 4.12% in 2023, demonstrating the company's ability to effectively manage its pre-tax earnings.
Finally, the net profit margin, which indicates the company's profitability after all expenses, including taxes, is taken into account, has also improved steadily over the years. Insight Enterprises' net profit margin increased from 2.06% in 2019 to 3.07% in 2023, highlighting the company's ability to generate profits and improve its bottom line.
Overall, Insight Enterprises Inc. has shown consistent improvement in its profitability ratios, indicating effective cost management, revenue generation, and overall financial performance over the analyzed period.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.68% | 8.09% | 7.08% | 6.30% | 5.76% |
| Return on assets (ROA) | 4.47% | 5.49% | 4.68% | 4.00% | 3.82% |
| Return on total capital | 24.14% | 25.27% | 22.07% | 20.12% | 20.70% |
| Return on equity (ROE) | 16.21% | 17.13% | 14.53% | 12.86% | 13.74% |
Insight Enterprises Inc.'s profitability ratios show a mixed performance over the past five years.
- Operating return on assets (Operating ROA) has been fluctuating, with a slight decline from 8.21% in 2022 to 6.89% in 2023. This ratio indicates the company's ability to generate profits from its assets used in its core operations.
- Return on assets (ROA) has also shown variability, ranging from 3.82% in 2019 to 5.49% in 2022. The ratio increased to 4.47% in 2023, suggesting the efficiency of the company in utilizing its assets to generate profit.
- Return on total capital has generally increased over the years, from 12.74% in 2019 to 16.19% in 2023. This indicates that Insight Enterprises Inc. has been effective in generating returns from both equity and debt sources.
- Return on equity (ROE) has shown some fluctuations, peaking at 17.13% in 2022 but then dropping to 16.21% in 2023. This ratio reflects the company's ability to generate profit from shareholder investments.
Overall, while there have been fluctuations in profitability ratios, Insight Enterprises Inc. has shown a consistent ability to generate returns for its shareholders and investors over the years.