NV5 Global Inc (NVEE)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 33.72% | 34.26% | 35.57% | 35.54% | 48.43% |
| Operating profit margin | 4.79% | 5.87% | 6.77% | 4.69% | 6.16% |
| Pretax margin | 3.78% | 5.54% | 6.15% | 3.08% | 5.71% |
| Net profit margin | 3.50% | 4.44% | 4.67% | 2.23% | 4.69% |
The profitability ratios of NV5 Global Inc have been varying over the past five years. The gross profit margin has shown a decreasing trend from 48.43% in 2019 to 33.72% in 2023, indicating a reduction in the percentage of revenue retained after accounting for the cost of goods sold.
Similarly, the operating profit margin has fluctuated, peaking at 6.77% in 2021 but declining to 4.79% in 2023. This suggests that the company's efficiency in controlling operating expenses has been mixed over the years.
The pretax margin, representing the company's profitability before tax, has also shown variability, with a high of 6.15% in 2021 and a low of 3.08% in 2020. This indicates fluctuations in the company's ability to generate profits relative to its total revenue.
The net profit margin, which reflects the company's bottom-line profitability after all expenses are accounted for, has ranged from 2.23% in 2020 to 4.67% in 2021. The downward trend observed in recent years, with a net profit margin of 3.50% in 2023, suggests that NV5 Global Inc may be facing challenges in maximizing its profits.
Overall, the fluctuating profitability ratios of NV5 Global Inc indicate the company's varying success in generating profits and controlling costs over the past five years. Further analysis of the company's financial performance and strategic decisions would be needed to determine the underlying reasons for these trends.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.23% | 7.07% | 7.10% | 5.01% | 3.49% |
| Return on assets (ROA) | 3.81% | 5.34% | 4.90% | 2.39% | 2.66% |
| Return on total capital | 7.89% | 9.53% | 10.94% | 6.52% | 4.53% |
| Return on equity (ROE) | 5.75% | 7.20% | 7.55% | 5.33% | 6.67% |
NV5 Global Inc's profitability ratios have shown a fluctuating trend over the last five years.
Operating return on assets (Operating ROA) has ranged from 3.49% in 2019 to 7.10% in 2021 but decreased slightly to 5.23% in 2023. This ratio indicates that, on average, the company generates around 5.23% of operating income for every dollar of assets.
Return on assets (ROA) has also varied from 2.39% in 2020 to 5.34% in 2022, with a value of 3.81% in 2023. This ratio reflects that NV5 Global Inc earned, on average, approximately 3.81% return on its total assets.
Return on total capital has fluctuated between 4.53% in 2019 and 10.94% in 2021, with a value of 7.89% in 2023. This ratio indicates that the company earned an average of around 7.89% return on the total capital employed in the business.
Return on equity (ROE) has ranged from 5.33% in 2021 to 7.55% in 2019, with a value of 5.75% in 2023. ROE reflects that NV5 Global Inc generated about 5.75% return on equity for its shareholders.
Overall, while the ratios show some variability, NV5 Global Inc has demonstrated an ability to generate reasonable returns on its assets, capital, and equity over the past five years, though there may be room for improvement in certain years.