Somnigroup International Inc. (SGI)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 43.22% | 41.65% | 43.78% | 44.56% | 43.21% |
| Operating profit margin | 12.33% | 13.83% | 18.50% | 14.47% | 11.16% |
| Pretax margin | 9.57% | 11.68% | 16.69% | 12.28% | 8.51% |
| Net profit margin | 7.47% | 9.26% | 12.67% | 9.49% | 6.10% |
Somnigroup International Inc.'s gross profit margin has been relatively stable over the past five years, ranging from 41.65% to 44.56%. This indicates that the company has been able to effectively manage its production costs and generate a consistent level of gross profit from its operations.
In terms of operating profit margin, Somnigroup showed fluctuations in profitability, with a substantial increase from 2019 to 2021, reaching a peak of 18.50%, before declining in 2022 and 2023. This may suggest varying levels of efficiency in managing operating expenses over the years.
The pretax margin of the company also saw a similar trend, with a notable increase in profitability from 2019 to 2021, followed by a decline in the subsequent years. This indicates that despite generating higher levels of revenue, Somnigroup faced challenges in controlling its pre-tax expenses effectively.
Net profit margin, reflecting the company's bottom-line profitability, displayed an increase from 2019 to 2021, reaching 12.67%. However, there was a decline in net profit margin in 2022 and 2023, falling to 7.47%. This suggests that although the company was successful in generating profits, its ability to convert revenue into net income diminished in the later years.
Overall, while Somnigroup International Inc. showed overall profitability improvements till 2021, there was a decline in profit margins in 2022 and 2023. Investors and stakeholders should carefully monitor the company's profitability ratios to assess its financial health and sustainability in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 13.33% | 15.61% | 21.10% | 16.08% | 11.32% |
| Return on assets (ROA) | 8.08% | 10.45% | 14.44% | 10.54% | 6.19% |
| Return on total capital | 180.38% | — | 311.09% | 104.92% | 18.79% |
| Return on equity (ROE) | 110.41% | — | 218.51% | 69.26% | 52.71% |
Somnigroup International Inc.'s profitability ratios have exhibited significant fluctuations over the years based on the provided data.
1. Operating Return on Assets (Operating ROA) has shown an increasing trend from 2019 to 2021, reaching its peak at 21.10% in 2021, before experiencing a slight decline in the subsequent years. This indicates the company's ability to generate operating profits from its assets, with a high of 21.10% in 2021.
2. Return on Assets (ROA) has also followed a similar pattern as Operating ROA, with an upward trend till 2021 and a subsequent decrease in 2022 and 2023. ROA peaked at 14.44% in 2021, reflecting the company's ability to generate profit from its total assets.
3. The Return on Total Capital was exceptionally high in 2021, indicating that the company generated a significant return in relation to its total capital employed. However, the data for 2022 is missing, and the return decreased to 180.38% in 2023.
4. Return on Equity (ROE) depicts the profitability of the company for its equity shareholders. Somnigroup International Inc. had a remarkable ROE of 218.51% in 2021, showing the company's capacity to generate profits for its shareholders. The ROE decreased in 2023 but remained relatively high at 110.41%.
Overall, while the profitability ratios of Somnigroup International Inc. have fluctuated, the company has demonstrated the ability to generate returns for its stakeholders, particularly in 2021, across different metrics. Continued monitoring and analysis of these ratios will be important to assess the company's financial performance and sustainability.