Penumbra Inc (PEN)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 63.20% | 64.49% | 63.18% | 63.59% | 60.34% |
| Operating profit margin | 0.78% | 6.95% | -2.15% | -1.00% | -6.95% |
| Pretax margin | 1.75% | 7.52% | 0.46% | -1.40% | -6.78% |
| Net profit margin | 1.17% | 8.59% | -0.24% | 0.35% | -3.44% |
Penumbra Inc's profitability ratios have shown a positive trend over the years. The gross profit margin has been relatively stable, ranging between 60.34% and 64.49%. This indicates the company's ability to efficiently manage its production costs and generate profit from its core operations.
The operating profit margin, after experiencing negative values in 2020 and 2021, has shown improvement, reaching 0.78% in 2024. This suggests that the company has been able to better control its operating expenses and improve its profitability at the operating level.
The pretax margin has also shown a notable improvement, moving from negative figures in 2020 and 2021 to 1.75% in 2024. This indicates that Penumbra Inc has been able to generate more profit before accounting for taxes, reflecting better operational efficiency and cost management.
Moreover, the net profit margin, which reflects the proportion of revenue that translates into net profit, has seen a significant increase from -3.44% in 2020 to 1.17% in 2024. This highlights the company's ability to enhance its bottom line through effective cost control, revenue growth, and overall improved profitability.
Overall, Penumbra Inc's profitability ratios demonstrate an upward trend, indicating the company's efforts in optimizing its operations and increasing its profitability over the years.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 0.61% | 4.73% | -1.33% | -0.60% | -4.73% |
| Return on assets (ROA) | 0.91% | 5.84% | -0.15% | 0.21% | -2.34% |
| Return on total capital | 1.94% | 6.90% | -2.15% | -0.79% | -6.07% |
| Return on equity (ROE) | 1.22% | 7.71% | -0.20% | 0.27% | -3.00% |
Penumbra Inc's profitability ratios have shown some fluctuations over the years as per the provided data.
1. Operating Return on Assets (Operating ROA):
- In December 2020, the Operating ROA was at -4.73%, indicating that the company generated a negative return on its operating assets.
- By December 2023, the Operating ROA improved significantly to 4.73%, showing the company's ability to generate positive returns from its operating assets.
- However, by December 2024, the Operating ROA decreased slightly to 0.61%.
2. Return on Assets (ROA):
- The ROA was negative in December 2020 at -2.34%, suggesting that the company was not efficiently utilizing its assets to generate profits.
- By December 2023, the ROA increased to 5.84%, indicating improved efficiency in asset utilization.
- The ROA for December 2024 was at 0.91%, showing a slight decline from 2023.
3. Return on Total Capital:
- The Return on Total Capital was negative in December 2020 at -6.07%, indicating that the company was not effectively generating returns on its total capital employed.
- By December 2023, the Return on Total Capital increased to 6.90%, signaling an improvement in capital efficiency.
- In December 2024, the Return on Total Capital was at 1.94%.
4. Return on Equity (ROE):
- The ROE for December 2020 was at -3.00%, implying a negative return for equity holders.
- By December 2023, the ROE improved to 7.71%, indicating better returns for equity investors.
- The ROE for December 2024 was at 1.22%, representing a slight decrease from 2023.
Overall, the trend in profitability ratios shows variability in Penumbra Inc's performance, with improvements in some areas and fluctuations in others. Monitoring these ratios over time can help assess the company's profitability and its ability to generate returns for stakeholders.