Resideo Technologies Inc (REZI)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 27.46% | 28.00% | 27.38% | 13.33% | 12.88% |
| Operating profit margin | 8.86% | 9.69% | 9.66% | 3.09% | 2.60% |
| Pretax margin | 5.07% | 6.63% | 6.10% | 1.00% | 0.72% |
| Net profit margin | 3.40% | 4.49% | 4.18% | 0.37% | 0.36% |
Resideo Technologies Inc has shown improvements in its profitability margins over the past five years. The gross profit margin has been relatively stable, ranging from 23.86% in 2019 to 27.72% in 2022, indicating the company's ability to efficiently manage its cost of goods sold.
The operating profit margin has also shown a positive trend, increasing from 5.17% in 2019 to 10.14% in 2022, reflecting the company's effective management of operating expenses. This indicates that Resideo Technologies has been able to generate more profit from its core business operations.
Moreover, the pretax margin and net profit margin have both shown a steady increase over the years. The pretax margin increased from 1.42% in 2019 to 6.56% in 2022, while the net profit margin increased from 0.72% in 2019 to 4.44% in 2022. This reflects the company's ability to generate more profit before and after accounting for taxes.
Overall, Resideo Technologies Inc has demonstrated an improvement in its profitability ratios over the years, indicating effective cost management and operational efficiency, leading to a stronger bottom line.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.23% | 9.57% | 9.55% | 5.54% | 5.03% |
| Return on assets (ROA) | 3.16% | 4.43% | 4.13% | 0.66% | 0.70% |
| Return on total capital | 13.20% | 15.54% | 11.55% | 5.21% | 5.07% |
| Return on equity (ROE) | 7.64% | 11.19% | 10.75% | 1.86% | 2.25% |
Resideo Technologies Inc's profitability ratios indicate a positive trend over the past five years. The Operating return on assets (Operating ROA) has shown consistent improvement from 5.03% in 2019 to 8.86% in 2023, suggesting the company is becoming more efficient in generating profits from its assets.
The Return on assets (ROA) has also steadily increased from 0.70% in 2019 to 3.16% in 2023, indicating the company's ability to generate profit relative to its total assets has been improving.
Return on total capital and Return on equity (ROE) have shown a similar positive trend, reflecting a growing profitability relative to the company's invested capital and shareholders' equity. The Return on total capital has increased from 7.34% in 2019 to 12.01% in 2023, while ROE has improved from 2.25% to 7.64% during the same period.
Overall, Resideo Technologies Inc has demonstrated improving profitability ratios over the years, which reflects positively on its operational efficiency and ability to generate returns for its investors.