NXP Semiconductors NV (NXPI)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 56.44% | 56.89% | 56.93% | 54.84% | 49.18% |
| Operating profit margin | 27.09% | 27.58% | 28.75% | 23.35% | 4.85% |
| Pretax margin | 24.57% | 25.25% | 25.47% | 19.71% | 0.01% |
| Net profit margin | 19.90% | 21.07% | 21.11% | 16.91% | 0.98% |
NXP Semiconductors NV has shown a consistent improvement in its profitability ratios over the years. The gross profit margin has increased from 49.18% in December 2020 to 56.44% in December 2024, indicating the company's ability to generate more profit from sales after accounting for the cost of goods sold.
The operating profit margin has also seen significant growth, rising from 4.85% in December 2020 to 27.09% in December 2024. This shows that the company has been able to control its operating expenses more efficiently and improve its profitability from core business operations.
Similarly, the pretax margin has exhibited a positive trend, increasing from 0.01% in December 2020 to 24.57% in December 2024. This indicates that NXP Semiconductors NV has been able to increase its profitability before accounting for taxes through improved operational efficiency and cost management.
Lastly, the net profit margin, which represents the profitability after all expenses, has shown a consistent rise from 0.98% in December 2020 to 19.90% in December 2024. This suggests that the company has been successful in managing its overall expenses, including taxes, interest, and other costs, to enhance its bottom-line profitability.
Overall, NXP Semiconductors NV has demonstrated a strong improvement in its profitability ratios over the years, indicating effective management of costs and operations to enhance its financial performance.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 14.01% | 15.03% | 16.34% | 12.38% | 2.11% |
| Return on assets (ROA) | 10.29% | 11.49% | 11.99% | 8.97% | 0.42% |
| Return on total capital | 38.08% | 43.85% | 50.88% | 39.05% | 4.06% |
| Return on equity (ROE) | 27.33% | 32.36% | 37.41% | 28.66% | 0.94% |
NXP Semiconductors NV's profitability ratios show a positive trend over the past five years, indicating an improvement in the company's ability to generate profits from its assets and capital.
1. Operating return on assets (Operating ROA) has steadily increased from 2.11% in 2020 to 16.34% in 2022, before slightly decreasing to 14.01% in 2024. This ratio measures the operating income generated per dollar of assets, reflecting the company's operational efficiency and effectiveness in utilizing its assets to generate profits.
2. Return on assets (ROA) also displays a positive trajectory, rising from 0.42% in 2020 to 10.29% in 2024. ROA evaluates the overall profitability of the company by measuring the net income generated relative to the total assets employed. The increase in ROA reflects NXP's enhanced ability to generate profits using its total asset base.
3. Return on total capital has shown a significant improvement, increasing from 4.06% in 2020 to 50.88% in 2022, before declining slightly to 38.08% in 2024. This ratio assesses the efficiency of the company in generating returns for both equity and debt holders, highlighting NXP's effective utilization of capital to generate profits.
4. Return on equity (ROE) has experienced a notable growth pattern, escalating from 0.94% in 2020 to 27.33% in 2024. ROE measures the returns generated for shareholders relative to the equity invested, showcasing NXP's ability to generate higher returns on shareholder investments.
Overall, the positive trend in NXP Semiconductors NV's profitability ratios indicates an improvement in the company's operational efficiency, asset utilization, and ability to generate profits for both equity and debt holders over the analyzed period.