Insight Enterprises Inc (NSIT)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 20.30% | 18.19% | 15.69% | 15.34% | 15.59% |
| Operating profit margin | 4.47% | 4.58% | 3.97% | 3.52% | 3.26% |
| Pretax margin | 3.83% | 4.12% | 3.59% | 3.10% | 2.74% |
| Net profit margin | 2.87% | 3.07% | 2.69% | 2.32% | 2.07% |
Insight Enterprises Inc's profitability ratios indicate a mixed performance over the period from December 31, 2020, to December 31, 2024.
- The Gross Profit Margin showed an improving trend, increasing from 15.59% in 2020 to 20.30% in 2024. This indicates that the company has been able to control its cost of goods sold and generate more gross profit relative to its revenue.
- The Operating Profit Margin also showed a general increase, starting at 3.26% in 2020, peaking at 4.58% in 2023, and slightly decreasing to 4.47% in 2024. This suggests that the company has been effective in managing its operating expenses while generating profit from its core operations.
- The Pretax Margin showed a slight fluctuation but demonstrated an overall increasing trend from 2.74% in 2020 to 4.12% in 2023 before decreasing to 3.83% in 2024. This indicates that the company's profitability before taxes improved over the period.
- The Net Profit Margin, on the other hand, showed some variability without a clear upward trend, starting at 2.07% in 2020, peaking at 3.07% in 2023, and declining to 2.87% in 2024. This suggests that the company's bottom-line profitability has been somewhat unstable, potentially impacted by various factors such as taxes, interest expenses, or one-time charges.
In summary, while Insight Enterprises Inc's Gross Profit Margin and Operating Profit Margin have generally improved over the period, the Net Profit Margin showed more volatility. It would be important for the company to continue monitoring and analyzing its cost structures and revenue streams to sustain and enhance its 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) | 6.09% | 6.68% | 8.09% | 7.08% | 6.30% |
| Return on assets (ROA) | 3.91% | 4.47% | 5.49% | 4.68% | 4.00% |
| Return on total capital | 22.08% | 24.14% | 25.63% | 21.89% | 21.32% |
| Return on equity (ROE) | 14.10% | 16.21% | 17.13% | 14.53% | 12.86% |
Insight Enterprises Inc's profitability ratios have shown a mixed performance over the years.
1. Operating Return on Assets (Operating ROA):
- The Operating Return on Assets has improved from 6.30% in 2020 to 8.09% in 2022 before slightly declining to 6.09% in 2024. This indicates that the company's operating income generated from its assets increased over the period but experienced a slight dip in 2024.
2. Return on Assets (ROA):
- The Return on Assets increased from 4.00% in 2020 to 5.49% in 2022, then decreased to 3.91% in 2024. This ratio shows the overall profitability of Insight Enterprises Inc in generating profits from its total assets, and the fluctuation suggests varying efficiency in asset utilization.
3. Return on Total Capital:
- The Return on Total Capital increased from 21.32% in 2020 to 25.63% in 2022 before declining to 22.08% in 2024. This ratio indicates the return generated on the total capital invested in the company and reflects a generally positive trend with a slight decrease in 2024.
4. Return on Equity (ROE):
- The Return on Equity increased from 12.86% in 2020 to 17.13% in 2022 before declining to 14.10% in 2024. ROE measures the return generated on shareholders' equity, and the trend suggests an improvement in shareholder value creation initially followed by a slight drop in 2024.
Overall, Insight Enterprises Inc has shown fluctuations in its profitability ratios over the years, with improvements in some ratios and declines in others. It is important to monitor these ratios closely to understand the company's overall profitability and efficiency in utilizing its assets and capital.