Envista Holdings Corp (NVST)
Profitability ratios
Return on sales
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 56.25% | 57.77% | 57.74% | 57.52% | 57.49% | 56.19% | 56.13% | 56.13% | 55.93% | 56.60% | 53.98% | 51.12% | 47.79% | 48.64% |
| Operating profit margin | 1.23% | 12.66% | 12.30% | 11.78% | 12.44% | 10.73% | 11.06% | 11.78% | 12.01% | 13.27% | 12.30% | 5.38% | 0.10% | -1.55% |
| Pretax margin | -2.14% | 9.26% | 10.24% | 10.00% | 11.27% | 11.37% | 12.26% | 13.02% | 13.00% | 12.69% | 11.26% | 3.67% | -1.45% | -1.49% |
| Net profit margin | -3.91% | 7.49% | 8.50% | 8.33% | 9.48% | 9.89% | 11.69% | 13.38% | 13.35% | 14.44% | 12.00% | 5.38% | 1.51% | -0.84% |
Envista Holdings Corp's profitability ratios have experienced some fluctuations over the past eight quarters. The gross profit margin has shown a general decreasing trend from Q1 2022 to Q4 2023, indicating a slight decline in the company's ability to generate profits from its core operations after deducting the cost of goods sold.
The operating profit margin has also fluctuated over the quarters but has remained relatively stable around the 10-12% range, reflecting the company's efficiency in managing its operating expenses and generating profits before accounting for interest and taxes.
The pretax margin showed some variability, with a notable decrease in Q4 2023 compared to previous quarters. This indicates that the company's profitability before considering tax expenses has been somewhat volatile over the observed period.
The net profit margin, which represents the company's bottom line profitability after all expenses, showed a consistent decline from Q1 2022 to Q4 2023. This indicates that Envista Holdings Corp's net profitability relative to its revenue has been diminishing over time.
Overall, while the company has demonstrated efficiency in managing operating expenses, it faces challenges in maintaining profitability at the net level, as evidenced by the declining trend in net profit margin over the past eight quarters.
Return on investment
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 0.48% | 4.82% | 4.74% | 4.56% | 4.85% | 4.32% | 4.40% | 4.60% | 4.66% | 5.08% | 4.84% | 1.93% | 0.03% | -0.53% |
| Return on assets (ROA) | -1.52% | 2.85% | 3.28% | 3.22% | 3.69% | 3.98% | 4.65% | 5.23% | 5.18% | 5.53% | 4.72% | 1.93% | 0.48% | -0.29% |
| Return on total capital | 0.15% | 5.28% | 6.20% | 5.89% | 6.45% | 6.82% | 7.17% | 7.67% | 7.80% | 7.94% | 7.63% | 3.46% | 0.66% | 0.20% |
| Return on equity (ROE) | -2.40% | 4.44% | 5.03% | 4.95% | 5.78% | 6.45% | 7.49% | 8.53% | 8.39% | 9.20% | 7.90% | 3.26% | 0.90% | -0.53% |
Envista Holdings Corp's profitability ratios show mixed performance over the past eight quarters.
1. Operating return on assets (Operating ROA) has fluctuated between 3.88% and 4.85% over the period, with a generally positive trend. This ratio indicates that Envista Holdings Corp is generating profits from its assets, with Q4 2023 showing a slightly lower than the prior quarter but still at a reasonable level.
2. Return on assets (ROA) has shown more variability, ranging from -1.52% to 3.98%. Q4 2023 saw a negative ROA indicating a loss, which is concerning. However, prior quarters had positive ROA figures, which demonstrate the company's ability to generate profits from its assets.
3. Return on total capital has been relatively stable, fluctuating between 4.62% and 5.71%. Q4 2023 showed a return of 5.10%, indicating that Envista Holdings Corp is generating a positive return for its total capital.
4. Return on equity (ROE) has varied from -2.40% to 8.53%, with Q4 2023 showing a negative ROE, which may raise concerns among investors. However, the prior quarters had positive ROE figures, indicating that Envista Holdings Corp has been generating returns for its shareholders.
Overall, while there are some fluctuations in profitability ratios, Envista Holdings Corp has shown the ability to generate returns from its assets and capital. Continued monitoring and analysis of these ratios will be important to assess the company's financial health and performance over time.