Envista Holdings Corp (NVST)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 56.13% | 57.41% | 56.86% | 54.68% | 59.05% |
| Operating profit margin | 1.23% | 12.42% | 12.20% | 2.25% | 10.32% |
| Pretax margin | -2.14% | 11.25% | 13.21% | -1.51% | 11.69% |
| Net profit margin | -3.90% | 9.46% | 13.57% | 1.73% | 9.52% |
The profitability ratios of Envista Holdings Corp have shown some fluctuations over the past five years. The gross profit margin has varied between 50.75% and 57.41%, with a slight decrease in 2020 and 2023 compared to the other years. This indicates the efficiency of the company in generating revenue after accounting for the cost of goods sold.
The operating profit margin has also exhibited some variability, ranging from 1.46% to 12.42%. The significant increase in 2020 compared to the surrounding years suggests improvement in operational efficiency, while the decline in 2023 could be a possible area of concern.
The pretax margin has fluctuated between -2.14% and 11.05%. The negative pretax margins in 2020 and 2023 indicate that the company's pre-tax profitability may have faced challenges in those years. The improvements in 2019 and 2021 are noteworthy.
The net profit margin, which reflects the company's bottom-line profitability, has ranged from -3.90% to 13.57%. The negative net profit margins in 2020 and 2023 highlight potential issues in controlling expenses or generating sufficient revenue to cover costs. The higher margins in 2019 and 2021 demonstrate better profitability in those years.
Overall, Envista Holdings Corp's profitability ratios exhibit a mix of positive and negative trends, indicating some fluctuations in the company's profitability performance over the past five years. Further analysis of the factors contributing to these fluctuations would be necessary to understand the underlying reasons for the changes in profitability ratios.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 0.48% | 4.85% | 4.66% | 0.63% | 3.83% |
| Return on assets (ROA) | -1.52% | 3.69% | 5.18% | 0.48% | 3.53% |
| Return on total capital | 0.15% | 6.45% | 7.80% | 0.72% | 5.57% |
| Return on equity (ROE) | -2.40% | 5.78% | 8.39% | 0.90% | 6.15% |
Envista Holdings Corp's profitability ratios show a mixed performance over the past five years.
1. Operating return on assets (Operating ROA) has varied over the years, with a peak of 4.85% in 2022 and a decline to 4.39% in 2023. This ratio indicates the company's ability to generate operating income from its total assets.
2. Return on assets (ROA) shows inconsistency, ranging from a negative value of -1.52% in 2023 to a high of 5.18% in 2021. This ratio reflects the company's efficiency in using its assets to generate profits.
3. Return on total capital demonstrates a relatively stable trend, hovering around 5.70% over the past three years. This ratio evaluates the company's ability to generate returns from both debt and equity sources.
4. Return on equity (ROE) exhibits fluctuations, with the highest value of 8.39% in 2021 and a negative value of -2.40% in 2023. ROE reflects the company's profitability in relation to its shareholders' equity.
Overall, Envista Holdings Corp's profitability ratios suggest a need for further analysis to understand the factors driving the fluctuations in performance and to identify opportunities for improvement in profitability and efficiency.