PHINIA Inc. (PHIN)
Profitability ratios
Return on sales
| Dec 31, 2024 | Sep 30, 2024 | Mar 31, 2024 | |
|---|---|---|---|
| Gross profit margin | 21.89% | 21.24% | 21.01% |
| Operating profit margin | 7.81% | 7.56% | 7.17% |
| Pretax margin | 6.15% | 6.10% | 6.10% |
| Net profit margin | 2.84% | 2.63% | 2.71% |
PHINIA Inc.'s profitability ratios for the periods ending March 31, 2024, September 30, 2024, and December 31, 2024, indicate consistent performance in managing its profitability.
1. Gross Profit Margin: The company maintained a stable gross profit margin of around 21% throughout the year-end periods. This shows that PHINIA Inc. efficiently controls its production costs and pricing strategies to generate profits after accounting for the cost of goods sold.
2. Operating Profit Margin: The operating profit margin also remained steady, ranging from 7.17% to 7.81%. This indicates that the company effectively manages its operating expenses relative to its revenue, resulting in a consistent level of profitability from its core business operations.
3. Pretax Margin: The pretax margin remained relatively flat, ranging from 6.10% to 6.15%, showcasing PHINIA Inc.'s ability to control its pre-tax expenses and generate profits before accounting for taxes.
4. Net Profit Margin: The net profit margin saw a slight increase from 2.71% to 2.84% between March and December 2024, indicating the company's ability to efficiently manage its overall expenses, including taxes, and generate net income for its shareholders.
Overall, PHINIA Inc.'s profitability ratios demonstrate a stable and efficient operational performance, with a focus on managing costs effectively to ensure sustained profitability over the periods analyzed.
Return on investment
| Dec 31, 2024 | Sep 30, 2024 | Mar 31, 2024 | |
|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.14% | 6.56% | 6.39% |
| Return on assets (ROA) | 2.60% | 2.29% | 2.41% |
| Return on total capital | 10.60% | 16.20% | 14.38% |
| Return on equity (ROE) | 6.23% | 5.40% | 5.19% |
Based on the provided data, we can see the following profitability ratios for PHINIA Inc.:
1. Operating return on assets (Operating ROA):
- March 31, 2024: 6.39%
- September 30, 2024: 6.56%
- December 31, 2024: 7.14%
The trend indicates an improvement in the company's operating return on assets over the year, reflecting the efficiency of the company in generating operating income from its assets.
2. Return on assets (ROA):
- March 31, 2024: 2.41%
- September 30, 2024: 2.29%
- December 31, 2024: 2.60%
The return on assets shows a moderate fluctuation over the periods provided, indicating the company's ability to generate profits relative to its total assets.
3. Return on total capital:
- March 31, 2024: 14.38%
- September 30, 2024: 16.20%
- December 31, 2024: 10.60%
The return on total capital has experienced variability, with a significant increase in the second quarter followed by a decrease in the fourth quarter of 2024. This ratio indicates the company's overall profitability in relation to its total capital employed.
4. Return on equity (ROE):
- March 31, 2024: 5.19%
- September 30, 2024: 5.40%
- December 31, 2024: 6.23%
The return on equity demonstrates a steady growth trend, indicating the company's ability to generate profits for its shareholders in relation to their equity investment.
Overall, PHINIA Inc. has shown relatively stable or improving profitability ratios across the Operating ROA, ROA, return on total capital, and ROE over the periods provided, with some fluctuations in the return on total capital. This analysis suggests that the company is efficiently utilizing its assets and capital to generate returns for its stakeholders.