NXP Semiconductors NV (NXPI)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 56.89% | 56.93% | 54.84% | 49.18% | 52.02% |
| Operating profit margin | 27.58% | 28.75% | 23.35% | 4.85% | 7.22% |
| Pretax margin | 25.01% | 25.11% | 19.37% | -0.36% | 2.96% |
| Net profit margin | 21.07% | 21.11% | 16.91% | 0.60% | 2.74% |
NXP Semiconductors NV's profitability ratios have shown a generally positive trend over the past five years.
The gross profit margin has remained relatively stable, fluctuating between 49.18% and 56.93%. This indicates consistent control over production costs and pricing strategies, leading to a healthy level of profitability after accounting for the cost of goods sold.
The operating profit margin has experienced significant improvement, increasing from 3.53% in 2020 to 27.69% in 2023. This suggests that the company has been able to effectively manage its operating expenses, resulting in higher profits from core business operations.
The pretax margin, which reflects the company's profitability before accounting for taxes, has shown a similar positive trend. After reaching a low of -0.03% in 2020, the margin has steadily increased to 25.20% in 2023, indicating improved efficiency in generating profits from total revenues.
The net profit margin, a key indicator of overall profitability, has also demonstrated substantial growth over the period. Starting from 0.60% in 2020, the margin has increased to 21.07% in 2023. This signifies the company's ability to generate higher profits after accounting for all expenses, including interest and taxes.
In conclusion, NXP Semiconductors NV has shown consistent improvement in its profitability ratios over the past five years, reflecting effective cost management and operational efficiency.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 15.03% | 16.34% | 12.38% | 2.11% | 3.20% |
| Return on assets (ROA) | 11.49% | 11.99% | 8.97% | 0.26% | 1.21% |
| Return on total capital | 43.48% | 50.25% | 38.48% | 3.70% | 6.70% |
| Return on equity (ROE) | 32.36% | 37.41% | 28.66% | 0.58% | 2.57% |
NXP Semiconductors NV's profitability ratios have shown fluctuating trends over the past five years.
1. Operating return on assets (Operating ROA) has ranged from 1.53% in 2020 to a peak of 16.33% in 2022. In 2023, the Operating ROA was 15.09%, indicating the company generated $0.151 in operating income for every dollar of assets.
2. Return on assets (ROA) has also varied, with a low of 0.26% in 2020 and a high of 11.99% in 2022. In 2023, the ROA was 11.49%, highlighting the company's ability to generate profits from its total assets.
3. Return on total capital has fluctuated as well, ranging from 1.81% in 2020 to 20.38% in 2022. In 2023, it stood at 18.51%, indicating the company's efficiency in generating returns for both debt and equity investors.
4. Return on equity (ROE) has displayed a similar pattern, varying from 0.58% in 2020 to 37.41% in 2022. In 2023, the ROE was 32.36%, illustrating the company's ability to generate profit for its shareholders.
Overall, NXP Semiconductors NV has shown solid profitability ratios, with improvements in recent years. However, investors should be mindful of the fluctuating nature of these ratios and consider other factors when evaluating the company's overall financial health and performance.