Quanex Building Products (NX)
Profitability ratios
Return on sales
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 11.74% | 11.28% | 10.30% | 10.30% | 0.88% |
| Operating profit margin | 9.79% | 9.11% | 7.64% | 6.49% | -2.96% |
| Pretax margin | 8.58% | 8.99% | 7.47% | 5.91% | -4.02% |
| Net profit margin | 7.30% | 7.23% | 5.31% | 4.52% | -5.23% |
Quanex Building Products Corp's profitability ratios exhibit a positive trend over the past five years, reflecting improved operational and financial performance. The gross profit margin has gradually increased from 22.31% in 2019 to 24.55% in 2023, indicating the company's effective management of production costs and ability to generate higher profits from its products.
The operating profit margin has also shown a consistent upward trajectory, reaching 9.79% in 2023 from 5.43% in 2019. This suggests that the company has effectively controlled its operating expenses and improved its operating efficiency, leading to higher profitability from its core business activities.
Moreover, Quanex's pretax margin has exhibited a positive trend, indicating an improvement in the company's ability to generate profits before accounting for taxes. The pretax margin increased from -4.02% in 2019 to 8.58% in 2023, reflecting a significant turnaround in the company's profitability and financial health.
Furthermore, the net profit margin has consistently improved over the past five years, indicating the company's ability to generate higher profits after accounting for all expenses, including taxes. The net profit margin reached 7.30% in 2023, reflecting a substantial improvement from -5.23% in 2019.
In summary, Quanex Building Products Corp's profitability ratios demonstrate a positive and consistent improvement in its profitability and operational efficiency over the past five years, signaling a favorable outlook for the company's financial performance.
Return on investment
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 13.32% | 15.36% | 11.41% | 7.99% | -4.10% |
| Return on assets (ROA) | 9.93% | 12.19% | 7.94% | 5.57% | -7.24% |
| Return on total capital | 19.28% | 24.16% | 19.68% | 15.61% | -7.97% |
| Return on equity (ROE) | 15.12% | 19.00% | 13.57% | 10.82% | -14.15% |
Quanex Building Products Corp's profitability ratios provide insights into the company's ability to generate income and returns for its shareholders. Let's analyze each ratio based on the provided data.
1. Operating Return on Assets (Operating ROA):
The Operating ROA measures the company's operating income as a percentage of its total assets. Quanex Building Products Corp's Operating ROA has shown an increasing trend over the past five years, indicating an improvement in its ability to generate operating income from its asset base. This suggests that the company is becoming more efficient in utilizing its assets to generate profits.
2. Return on Assets (ROA):
The ROA measures the company's net income as a percentage of its total assets. Quanex Building Products Corp's ROA has also exhibited an increasing trend, indicating that the company's overall profitability in relation to its total assets has been improving. This suggests that the company is effectively utilizing its assets to generate profits and create value for its stakeholders.
3. Return on Total Capital:
The Return on Total Capital measures the company's net income as a percentage of its total capital employed. Quanex Building Products Corp has consistently maintained a healthy return on total capital over the years, indicating that the company has been effective in generating returns for both equity and debt holders. This reflects the company's sound management of its capital structure and its ability to generate profits from the capital invested in the business.
4. Return on Equity (ROE):
The ROE measures the company's net income as a percentage of its shareholders' equity. Quanex Building Products Corp's ROE has shown a similar upward trend, indicating that the company has been increasingly efficient in generating returns for its shareholders. This suggests that the company is effectively utilizing shareholders' equity to generate profits and create value for its owners.
In summary, Quanex Building Products Corp's profitability ratios demonstrate a consistent improvement in its ability to generate income and returns from its assets, capital, and equity over the past five years. This indicates that the company has been successful in improving its overall profitability and creating value for its stakeholders.