Impinj Inc (PI)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 51.59% | 50.18% | 54.10% | 52.18% | 48.11% |
| Operating profit margin | -1.93% | -14.36% | -7.64% | -19.64% | -34.76% |
| Pretax margin | 11.20% | -14.43% | -9.46% | -26.95% | -38.28% |
| Net profit margin | 11.16% | -14.32% | -9.54% | -27.03% | -38.34% |
Impinj Inc's gross profit margin has shown a consistent upward trend over the years, increasing from 48.11% in December 2020 to 51.59% in December 2024. This indicates the company's ability to control its production costs and generate more profitability from its core operations.
However, the operating profit margin, pretax margin, and net profit margin all depict a fluctuating pattern with some improvements in certain years. The operating profit margin improved from -34.76% in December 2020 to -1.93% in December 2024, which suggests a reduction in operating expenses and losses over the period. The pretax margin also showed improvement, moving from -38.28% in December 2020 to 11.20% in December 2024, indicating better management of expenses and higher pre-tax profitability.
Similarly, the net profit margin has shown a significant positive shift from -38.34% in December 2020 to 11.16% in December 2024, reflecting a substantial enhancement in overall profitability after considering all expenses and tax obligations.
Overall, while the gross profit margin demonstrates strong performance in generating profits from sales, the improvements in the operating profit margin, pretax margin, and net profit margin over the years indicate progress in managing costs and enhancing overall profitability for Impinj Inc.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -1.45% | -12.10% | -5.57% | -11.80% | -22.67% |
| Return on assets (ROA) | 8.35% | -12.07% | -6.95% | -16.25% | -25.01% |
| Return on total capital | 30.61% | -12.29% | -6.49% | -18.15% | -28.36% |
| Return on equity (ROE) | 27.25% | -127.06% | -155.87% | — | -47.58% |
Impinj Inc's profitability ratios show a fluctuating performance over the years, indicating some challenges in generating profits relative to its assets and capital structure.
- Operating return on assets (Operating ROA) has improved gradually from -22.67% in 2020 to -1.45% in 2024. Despite the improvement, the company still struggles to generate operating income efficiently from its total assets.
- Return on assets (ROA) also shows an improving trend, moving from -25.01% in 2020 to 8.35% in 2024. This indicates an increase in the company's ability to generate profits relative to its assets over the years.
- Return on total capital demonstrates a volatile pattern, decreasing from -28.36% in 2020 to -12.29% in 2023 before surging to 30.61% in 2024. The significant improvement in 2024 suggests a positive turnaround in utilizing the total capital more effectively to generate returns.
- Return on equity (ROE) has been notably negative, reaching as low as -155.87% in 2022. However, there is a significant improvement in 2024 with a ROE of 27.25%, indicating that the company is gradually turning around its ability to generate profits for its equity shareholders.
Overall, while there are signs of improvement in profitability ratios over the years, Impinj Inc still faces challenges in optimizing its assets and capital to generate consistent and sustainable returns for its stakeholders.