Rogers Corporation (ROG)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 33.38% | 33.81% | 33.05% | 37.43% | 36.36% |
| Operating profit margin | 3.00% | 9.39% | 14.87% | 9.55% | 2.15% |
| Pretax margin | 4.13% | 8.40% | 14.45% | 13.54% | 8.54% |
| Net profit margin | 3.14% | 6.23% | 12.01% | 11.59% | 6.23% |
Based on the provided data, let's analyze the profitability ratios of Rogers Corporation over the five-year period.
1. Gross Profit Margin:
- The gross profit margin measures the proportion of revenue that exceeds the cost of goods sold.
- Rogers Corporation's gross profit margin improved from 36.36% in 2020 to 37.43% in 2021. However, it declined in the subsequent years, reaching 33.38% by the end of 2024.
- The decreasing trend in the gross profit margin could indicate pricing pressures, increased competition, or higher production costs.
2. Operating Profit Margin:
- The operating profit margin indicates the percentage of revenue that remains after deducting operating expenses.
- Rogers Corporation's operating profit margin significantly increased from 2.15% in 2020 to 14.87% in 2022, showing strong operational efficiency. However, it dropped to 3.00% by the end of 2024.
- The fluctuation in the operating profit margin suggests varying levels of control over operating costs and efficiency in generating profits from operations.
3. Pretax Margin:
- The pretax margin represents the percentage of revenue that remains after deducting all expenses except income taxes.
- Rogers Corporation's pretax margin showed an upward trend from 8.54% in 2020 to 14.45% in 2022. However, it decreased to 4.13% by the end of 2024.
- The decline in the pretax margin in the latter years may indicate challenges in managing non-operating expenses or external factors affecting profitability.
4. Net Profit Margin:
- The net profit margin reflects the percentage of revenue that translates into net income after all expenses, including taxes.
- Rogers Corporation's net profit margin increased from 6.23% in 2020 to 12.01% in 2022 before decreasing to 3.14% by the end of 2024.
- The fluctuating trend in the net profit margin suggests changes in the company's ability to control costs, manage taxes, and generate bottom-line profits.
In conclusion, the profitability ratios of Rogers Corporation have shown fluctuations over the five-year period, with varying levels of operational efficiency, cost control, and overall profitability. Further analysis and examination of the company's financial and operational strategies would be necessary to understand the factors driving these trends.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 1.68% | 5.62% | 8.77% | 5.57% | 1.36% |
| Return on assets (ROA) | 1.76% | 3.73% | 7.08% | 6.76% | 3.95% |
| Return on total capital | 2.87% | 6.96% | 12.85% | 11.56% | 7.90% |
| Return on equity (ROE) | 2.09% | 4.50% | 9.94% | 9.66% | 4.90% |
Based on the data provided, we can analyze Rogers Corporation's profitability ratios over the five-year period from December 31, 2020, to December 31, 2024:
1. Operating Return on Assets (Operating ROA):
- The Operating ROA increased steadily from 1.36% in 2020 to 8.77% in 2022, displaying a strong improvement in operational efficiency. However, there was a slight decline to 5.62% in 2023 before dropping to 1.68% in 2024.
- This ratio measures the company's operating income generated per dollar of assets, indicating the efficiency of utilizing assets to generate profits.
2. Return on Assets (ROA):
- The ROA showed a similar increasing trend from 3.95% in 2020 to a peak of 7.08% in 2022. Subsequently, there was a decline to 1.76% in 2024.
- ROA evaluates the company's overall profitability by measuring its ability to generate earnings from its assets.
3. Return on Total Capital:
- The Return on Total Capital rose from 7.90% in 2020 to 12.85% in 2022, demonstrating an efficient use of both debt and equity capital. However, there was a decrease to 2.87% in 2024.
- This ratio reflects the company's ability to generate returns from all capital invested in the business.
4. Return on Equity (ROE):
- The ROE increased from 4.90% in 2020 to a peak of 9.94% in 2022 before declining to 2.09% in 2024.
- ROE measures the profitability of the company from the perspective of its shareholders, indicating the efficiency of generating profits relative to shareholders' equity.
Overall, the profitability ratios of Rogers Corporation reflect a mixed performance with improvements in certain years followed by declines. It is essential for the company to focus on sustaining and enhancing its profitability metrics over the long term to create value for its stakeholders.