Pentair PLC (PNR)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 38.10% | 33.60% | 35.13% | 35.31% | 35.56% |
| Operating profit margin | 18.54% | 14.66% | 16.96% | 15.41% | 14.63% |
| Pretax margin | 15.52% | 13.50% | 16.61% | 14.48% | 13.58% |
| Net profit margin | 15.62% | 11.84% | 14.73% | 11.97% | 12.03% |
Pentair plc has shown a consistent improvement in its profitability ratios over the past five years. The gross profit margin has seen a gradual increase from 33.11% in 2019 to 37.01% in 2023, indicating the company's ability to effectively control production costs and generate profit from its core operations.
The operating profit margin has also exhibited a positive trend, rising from 14.44% in 2019 to 18.01% in 2023. This indicates that Pentair plc has been successful in managing its operating expenses and enhancing operational efficiency to boost profitability.
Furthermore, the pretax margin has fluctuated but generally increased over the years, reaching 15.08% in 2023 compared to 13.78% in 2019. This suggests that the company has been effective in managing its overall expenses, including interest and taxes, to improve its pre-tax profitability.
Lastly, the net profit margin, which represents the company's bottom-line profitability after accounting for all expenses, has shown consistent growth, reaching 15.17% in 2023 from 12.03% in 2019. This indicates that Pentair plc has been successful in translating its revenue into net income, reflecting its overall profitability and potential for generating returns for its shareholders.
Overall, Pentair plc's profitability ratios demonstrate a positive trajectory, reflecting its ability to efficiently manage costs, improve operational performance, and drive profitability over the years.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 11.26% | 9.23% | 13.40% | 10.99% | 10.45% |
| Return on assets (ROA) | 9.49% | 7.46% | 11.63% | 8.54% | 8.59% |
| Return on total capital | 14.20% | 11.85% | 19.21% | 15.66% | 14.47% |
| Return on equity (ROE) | 19.36% | 17.76% | 22.83% | 17.03% | 18.20% |
Pentair plc's profitability ratios show a generally positive trend over the past five years.
Operating return on assets (Operating ROA) has been increasing steadily, with a significant improvement from 9.23% in 2022 to 11.26% in 2023. This indicates that the company is effectively generating operating income from its assets.
Return on assets (ROA) has also shown an upward trend, with a notable increase from 7.46% in 2022 to 9.49% in 2023. This suggests that Pentair is becoming more efficient in generating profits relative to its total assets.
Return on total capital has consistently increased over the years, reaching 14.20% in 2023. This ratio reflects the overall profitability of the company in relation to its total invested capital.
Return on equity (ROE) has shown fluctuations but remains relatively strong, with a peak of 19.36% in 2023. This indicates that Pentair is generating significant returns for its shareholders.
Overall, Pentair plc's profitability ratios demonstrate a positive performance, reflecting efficient use of assets and capital to generate profits over the years.