Envista Holdings Corp (NVST)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 54.74% | 56.13% | 57.41% | 56.86% | 54.68% |
| Operating profit margin | -41.40% | 1.23% | 12.42% | 12.20% | 2.25% |
| Pretax margin | -43.25% | -2.14% | 11.25% | 13.21% | -1.51% |
| Net profit margin | -44.60% | -3.90% | 9.46% | 13.57% | 1.73% |
The profitability ratios of Envista Holdings Corp show fluctuating trends over the five-year period.
1. Gross Profit Margin: Envista's gross profit margin has generally improved from 54.68% in 2020 to 57.41% in 2022 but slightly decreased to 54.74% in 2024. This indicates the company's ability to generate profits from its core operations after accounting for the cost of goods sold.
2. Operating Profit Margin: The operating profit margin experienced significant variability, ranging from a low of 2.25% in 2020 to a high of 12.42% in 2022. However, it significantly declined to -41.40% in 2024, suggesting operational challenges or inefficiencies impacting profitability.
3. Pretax Margin: Envista's pretax margin showed a similar trend as operating profit margin, with fluctuations over the years. It increased from -1.51% in 2020 to a peak of 13.21% in 2021 before dropping to -43.25% in 2024. This indicates the impact of various factors on the company's profitability before accounting for taxes.
4. Net Profit Margin: The net profit margin followed a pattern similar to the operating and pretax margins, improving from 1.73% in 2020 to 13.57% in 2021 before declining to -44.60% in 2024. The negative margin in 2024 signifies that the company's net profit after all expenses and taxes exceeded its revenue, indicating potential financial distress.
In summary, Envista Holdings Corp's profitability ratios have shown mixed performance over the period, with improvements in gross profit margin offset by significant declines in operating, pretax, and net profit margins in recent years. This suggests a need for the company to address operational efficiency and cost management to restore profitability and financial stability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -19.40% | 0.48% | 4.85% | 4.66% | 0.63% |
| Return on assets (ROA) | -20.91% | -1.52% | 3.69% | 5.18% | 0.48% |
| Return on total capital | -24.64% | 0.15% | 6.45% | 7.80% | 0.72% |
| Return on equity (ROE) | -38.12% | -2.40% | 5.78% | 8.39% | 0.90% |
Envista Holdings Corp's profitability ratios have shown mixed performance over the past five years.
1. Operating return on assets (Operating ROA) has improved significantly from 0.63% in 2020 to 4.85% in 2022 before dropping to 0.48% in 2023 and further to -19.40% in 2024. This indicates that the company's operating income generated from its assets has fluctuated, with a substantial decline in 2024.
2. Return on assets (ROA) has also displayed fluctuations, with a notable increase from 0.48% in 2020 to 5.18% in 2021, but then dropping to -20.91% in 2024. This suggests that the company's overall profitability in relation to its total assets has been volatile, ending with a significant decline in 2024.
3. Return on total capital reflects a similar trend, with an upward movement from 0.72% in 2020 to 7.80% in 2021, but then declining to -24.64% in 2024. This indicates that the return generated from the company's total capital has been inconsistent, finally showing a substantial negative return in 2024.
4. Return on equity (ROE) has followed a similar pattern, improving from 0.90% in 2020 to 8.39% in 2021, but then decreasing to -38.12% in 2024. This indicates that the return to the shareholders' equity has fluctuated significantly, with a sharp decline in 2024, reflecting a concerning trend for investors.
Overall, Envista Holdings Corp's profitability ratios have shown instability and declining performance in recent years, raising potential concerns about the company's efficiency in generating profits and returns for its stakeholders.