Pentair PLC (PNR)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 40.02% | 38.10% | 33.60% | 35.13% | 35.31% |
| Operating profit margin | 20.12% | 18.54% | 14.66% | 16.96% | 15.41% |
| Pretax margin | 17.99% | 15.52% | 13.50% | 16.61% | 14.48% |
| Net profit margin | 15.65% | 15.62% | 11.84% | 14.73% | 11.97% |
Pentair PLC's profitability ratios show varying levels of performance over the years.
1. Gross Profit Margin: It depicts the efficiency of the company in generating revenue from its cost of goods sold. The Gross Profit Margin has decreased from 35.31% in 2020 to 33.60% in 2022 but then showed an improvement to 40.02% in 2024. This indicates fluctuations in the company's ability to control production costs and pricing strategies.
2. Operating Profit Margin: This ratio measures the company's ability to generate profit from its core operations. Pentair PLC's Operating Profit Margin has shown an upward trend, increasing from 15.41% in 2020 to 20.12% in 2024. This suggests efficiency in managing operating expenses and improving operational performance.
3. Pretax Margin: It reflects the company's profitability before accounting for taxes. The Pretax Margin for Pentair PLC has fluctuated over the years, with a low of 13.50% in 2022 and a high of 17.99% in 2024. This indicates some fluctuations in the company's ability to manage expenses and generate pre-tax profits.
4. Net Profit Margin: This ratio indicates the company's overall profitability after all expenses have been taken into account. Pentair PLC's Net Profit Margin has shown improvement from 11.97% in 2020 to 15.65% in 2024. This suggests effective management of both operating and non-operating expenses to increase bottom-line profitability.
In conclusion, Pentair PLC has exhibited a mixed performance in its profitability ratios over the years, with some ratios showing improvement while others fluctuating. Management should continue to focus on cost controls, operational efficiency, and revenue generation to sustain and enhance overall profitability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 12.47% | 11.26% | 9.23% | 13.40% | 10.99% |
| Return on assets (ROA) | 9.70% | 9.49% | 7.46% | 11.63% | 8.54% |
| Return on total capital | 15.45% | 14.20% | 11.85% | 19.21% | 15.66% |
| Return on equity (ROE) | 17.55% | 19.36% | 17.76% | 22.83% | 17.03% |
Pentair PLC's profitability ratios show a generally positive trend over the five-year period from 2020 to 2024.
- Operating return on assets (Operating ROA) improved from 10.99% in 2020 to 13.40% in 2021 before declining to 9.23% in 2022. However, there was a recovery in 2023 and 2024 with ratios of 11.26% and 12.47% respectively. This indicates that the company's operational efficiency in generating profits from its assets fluctuated but improved overall.
- Return on assets (ROA) also saw an upward trend, increasing from 8.54% in 2020 to 11.63% in 2021. There was a slight dip in 2022 but recovered in the following years to reach 9.70% in 2024. This ratio indicates the company's ability to generate profits relative to its total assets, and the increasing trend suggests better asset utilization over time.
- Return on total capital peaked at 19.21% in 2021, reflecting a strong return on the total invested capital. The ratio then fluctuated in the subsequent years but remained above 11% throughout the period. This indicates that Pentair PLC was able to generate a favorable return for its total capital but experienced some fluctuations in profitability.
- Return on equity (ROE) followed a similar pattern, starting at 17.03% in 2020 and increasing to 22.83% in 2021. The ratio remained relatively stable between 17% and 19% in the later years, indicating that the company was able to generate consistent returns for its shareholders.
Overall, Pentair PLC's profitability ratios demonstrate a positive performance, with improvements in operational efficiency and returns generated from assets, total capital, and equity over the period analyzed. It is essential for the company to continue monitoring and managing these ratios to sustain and enhance its profitability in the future.