Resideo Technologies Inc (REZI)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 28.12% | 27.17% | 27.72% | 26.70% | 25.89% |
| Operating profit margin | 7.69% | 8.76% | 9.59% | 6.86% | 3.23% |
| Pretax margin | 3.27% | 5.01% | 6.56% | 6.04% | 1.99% |
| Net profit margin | 1.72% | 3.36% | 4.44% | 4.14% | 0.73% |
Resideo Technologies Inc has shown a consistent improvement in its gross profit margin over the years, increasing from 25.89% in 2020 to 28.12% in 2024. This indicates the company's ability to efficiently manage its production and distribution costs while generating revenue.
In terms of operating profit margin, Resideo Technologies Inc experienced a significant increase from 3.23% in 2020 to 9.59% in 2022, before slightly declining to 7.69% in 2024. This improvement suggests effective cost management and operational efficiency.
The pretax margin for Resideo Technologies Inc also depicted an overall positive trend, rising from 1.99% in 2020 to 6.56% in 2022, but then declining to 3.27% in 2024. This indicates the company's ability to generate profits before accounting for taxes, albeit with some fluctuations.
However, the net profit margin of the company showed a decline over the period, dropping from 4.14% in 2021 to 1.72% in 2024. This decrease might be a concern as it reflects the company's declining profitability after accounting for all expenses, including interest and taxes.
Overall, while Resideo Technologies Inc has shown improvements in its gross profit and operating profit margins, the downward trend in net profit margin highlights the importance of closely monitoring and managing expenses to sustain 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) | 6.34% | 8.23% | 9.57% | 6.85% | 2.92% |
| Return on assets (ROA) | 1.41% | 3.16% | 4.43% | 4.13% | 0.66% |
| Return on total capital | 9.13% | 15.28% | 27.09% | 25.27% | 8.23% |
| Return on equity (ROE) | 3.51% | 7.64% | 11.19% | 10.75% | 1.86% |
Resideo Technologies Inc's profitability ratios exhibit varying trends over the years.
- Operating return on assets (Operating ROA) has shown a positive trajectory, increasing from 2.92% in 2020 to 9.57% in 2022, before slightly decreasing to 6.34% in 2024. This indicates the company's improving efficiency in generating profits from its operating assets during the period.
- Return on assets (ROA) has also demonstrated an upward trend initially, rising from 0.66% in 2020 to 4.43% in 2022, but then declined to 1.41% by 2024. This suggests that while the company was able to generate higher returns relative to its total assets in the earlier years, there has been a decrease in profitability efficiency.
- Return on total capital shows a significant increase in 2021, reaching 25.27%, and peaking at 27.09% in 2022. However, there was a notable decline to 9.13% by 2024. This ratio highlights the company's ability to generate returns for both debt and equity holders, but the decreasing trend indicates a potential inefficiency in utilizing total capital.
- Return on equity (ROE) has followed a similar pattern, with an increase from 1.86% in 2020 to 11.19% in 2022, before decreasing to 3.51% in 2024. This ratio reflects the company's profitability in relation to shareholders' equity, and the fluctuations suggest changes in the efficiency of equity utilization over the years.
Overall, while Resideo Technologies Inc has shown improvements in operating profitability ratios such as Operating ROA, there are fluctuations in other key ratios like ROA, Return on total capital, and ROE, indicating potential challenges in maintaining consistent profitability levels over the years.