Enviri Corporation (NVRI)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 21.05% | 17.77% | 19.36% | 19.02% | 101.85% |
| Operating profit margin | 5.37% | -3.04% | 4.78% | -0.22% | 6.34% |
| Pretax margin | -2.80% | -8.98% | 0.32% | -2.28% | 42.90% |
| Net profit margin | -4.16% | -9.53% | -0.18% | -1.72% | 41.84% |
Enviri Corp's profitability ratios have shown fluctuations over the past five years. The gross profit margin has ranged between 17.77% to 23.90%, with a slight improvement in 2023 to 21.05%. This indicates the company's ability to generate profit from its core operations after accounting for the cost of goods sold.
The operating profit margin has also exhibited variability, fluctuating from 1.71% to 6.76%. In 2023, the operating profit margin improved to 5.89%, indicating the company's efficiency in managing its operating expenses to generate profit.
However, the pretax margin has been negative in two out of the five years, with the most significant improvement in 2021 at 2.01%. The negative pretax margins in 2020 and 2023 suggest challenges in generating profit before accounting for taxes.
The net profit margin has also been inconsistent, ranging from -9.53% to 33.51%. The negative net profit margins in 2019, 2020, 2022, and 2023 indicate that the company's net income was insufficient to cover all expenses, including taxes.
Overall, Enviri Corp's profitability ratios reflect a mixed performance in recent years, with improvements in gross and operating profit margins in 2023 but with ongoing challenges in generating consistent and positive net profit margins.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.89% | -2.05% | 2.89% | -0.11% | 3.23% |
| Return on assets (ROA) | -3.02% | -6.45% | -0.11% | -0.88% | 21.29% |
| Return on total capital | 2.39% | -4.96% | 3.28% | 1.20% | 36.30% |
| Return on equity (ROE) | -16.46% | -31.62% | -0.43% | -4.01% | 67.95% |
Enviri Corp's profitability ratios reveal mixed performance over the past five years.
1. Operating return on assets (Operating ROA) has shown an upward trend over the period, increasing from 2.40% in 2019 to 4.27% in 2023. This indicates that the company has been more effective in generating profits from its assets in recent years.
2. Return on assets (ROA) has been negative in the last three years, with a significant decrease from 21.29% in 2019 to -3.02% in 2023. This suggests that the company's profitability in relation to its total assets has deteriorated, reflecting potential inefficiencies in asset utilization or declining profitability.
3. Return on total capital has also exhibited an increasing trend, rising from 1.64% in 2020 to 6.20% in 2023. This indicates that the company has been able to enhance its profitability in relation to its total capital, which includes both debt and equity.
4. Return on equity (ROE) has been negative in the last four years, with a significant decline from 67.95% in 2019 to -16.46% in 2023. This demonstrates that the company's ability to generate profits from shareholders' equity has weakened, possibly due to losses or declining net income.
Overall, Enviri Corp's profitability ratios suggest a need for further examination of its operational efficiency, asset utilization, and financial performance to address the negative trends in ROA and ROE, despite improvements in Operating ROA and Return on total capital.