NV5 Global Inc (NVEE)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 100.00% | 49.94% | 49.06% | 50.84% | 50.74% |
| Operating profit margin | 8.99% | 7.10% | 8.41% | 9.67% | 6.70% |
| Pretax margin | 5.43% | 5.59% | 7.93% | 8.79% | 4.39% |
| Net profit margin | 5.79% | 5.18% | 6.35% | 6.67% | 3.19% |
Based on the provided data, we can analyze the profitability ratios of NV5 Global Inc over the past five years.
1. Gross Profit Margin: The gross profit margin remained relatively stable, ranging from 49.06% to 100.00% over the period. The high value in 2024 may indicate an improvement in the company's ability to generate profits from its core business activities.
2. Operating Profit Margin: The operating profit margin also showed consistency, with fluctuations between 6.70% and 9.67%. This indicates the company's efficiency in controlling operating expenses while generating profits from its operations.
3. Pretax Margin: The pretax margin varied from 4.39% to 8.79% over the years, demonstrating the company's ability to manage pre-tax earnings relative to its total revenue. The significant increase in 2021 compared to 2020 is noteworthy.
4. Net Profit Margin: The net profit margin ranged from 3.19% to 6.67%, with a slight decrease in 2024 from the previous year. This ratio indicates the company's overall profitability after accounting for all expenses and taxes.
In general, NV5 Global Inc has maintained healthy profitability ratios over the analyzed period, showing consistent performance in generating profits relative to its revenue. It will be important to monitor these ratios in the future to assess the company's continued financial health and profitability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.30% | 5.23% | 7.07% | 7.10% | 5.01% |
| Return on assets (ROA) | 2.13% | 3.81% | 5.34% | 4.90% | 2.39% |
| Return on total capital | 5.21% | 7.89% | 9.53% | 10.94% | 11.20% |
| Return on equity (ROE) | 3.36% | 5.75% | 7.20% | 7.55% | 5.33% |
Based on the provided data, let's analyze the profitability ratios of NV5 Global Inc:
1. Operating return on assets (Operating ROA):
- The Operating ROA for NV5 Global Inc has shown a slight increase from 5.01% in 2020 to 7.10% in 2021, and then a relatively stable range around 7% in the following years. This indicates that the company is generating operating income more efficiently relative to its assets.
2. Return on assets (ROA):
- The ROA has also displayed an upward trend, improving from 2.39% in 2020 to 4.90% in 2021, but then fluctuating slightly around 4% in the subsequent years. This ratio signifies the company's ability to generate profits from its total assets.
3. Return on total capital:
- The Return on Total Capital has been decreasing over the years, declining from 11.20% in 2020 to 5.21% in 2024. This decrease suggests that the company's efficiency in generating returns from its total capital has been reducing.
4. Return on equity (ROE):
- The ROE has followed a similar pattern to the ROA, with an increase from 5.33% in 2020 to 7.55% in 2021, then stabilizing around 7% in the subsequent years before dropping to 3.36% in 2024. The ROE measures the profitability of the company with respect to its equity shareholders.
Overall, NV5 Global Inc has shown improvements in its Operating ROA, ROA, and ROE initially, but a decline in Return on Total Capital over the years, indicating a need for the company to focus on managing its capital more effectively to enhance overall profitability.