Somnigroup International Inc. (SGI)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 44.21% | 43.22% | 41.65% | 43.78% | 44.56% |
| Operating profit margin | 12.86% | 12.33% | 13.83% | 18.50% | 14.47% |
| Pretax margin | 10.23% | 9.63% | 11.73% | 16.71% | 12.30% |
| Net profit margin | 7.79% | 7.47% | 9.26% | 12.67% | 9.49% |
Somnigroup International Inc.'s profitability ratios show a fluctuating trend over the past five years. The gross profit margin has been relatively stable, ranging from 41.65% in 2022 to 44.56% in 2020. This indicates the company's ability to efficiently generate revenue after accounting for the cost of goods sold.
The operating profit margin, on the other hand, has varied more significantly, with a peak of 18.50% in 2021 and a low of 12.33% in 2023. This suggests fluctuations in operating expenses and efficiency in managing costs to generate operating profits.
The pretax margin has also shown variability, ranging from 9.63% in 2023 to 16.71% in 2021. This metric reflects the company's ability to control expenses and generate profits before taxes.
The net profit margin, which represents the bottom line profitability after all expenses have been deducted, has experienced a decline over the years, from 12.67% in 2021 to 7.47% in 2023. This indicates challenges in maintaining profitability at the net level, possibly due to increasing expenses or declining revenues.
Overall, while Somnigroup International Inc. has maintained a decent gross profit margin and has shown resilience in generating profits, there are certain areas, such as controlling operating expenses and maintaining net profitability, where the company may need to focus on improving its performance for sustained profitability in the future.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 10.60% | 13.33% | 15.61% | 21.10% | 16.08% |
| Return on assets (ROA) | 6.43% | 8.08% | 10.45% | 14.44% | 10.54% |
| Return on total capital | 114.33% | 186.77% | — | 311.51% | 105.12% |
| Return on equity (ROE) | 68.75% | 113.82% | — | 218.51% | 69.26% |
Somnigroup International Inc.'s profitability ratios show varying trends over the years.
1. Operating Return on Assets (Operating ROA):
- Somnigroup's operating return on assets has fluctuated, ranging from 10.60% in December 2024 to 21.10% in December 2021. The company's ability to generate operating profit from its assets was strongest in 2021 but declined thereafter.
2. Return on Assets (ROA):
- The return on assets also displayed a decreasing trend, declining from 14.44% in December 2021 to 6.43% in December 2024. This indicates that the company's profitability in relation to its total assets has weakened over time.
3. Return on Total Capital:
- Somnigroup's return on total capital was impressive in 2021, at 311.51%, but data is unavailable for 2022. Subsequently, it decreased to 114.33% by December 2024, still reflecting a strong return relative to total capital employed.
4. Return on Equity (ROE):
- The return on equity ratio was significantly high in 2021, at 218.51%, but dropped to 68.75% by December 2024. This indicates that the company's profitability in relation to shareholders' equity has also decreased over the years.
Overall, the profitability ratios of Somnigroup International Inc. suggest a mixed performance, with declining trends in ROA, ROE, and Operating ROA, but a strong return on total capital in the years available for analysis. It is essential for investors and stakeholders to closely monitor these ratios to evaluate the company's overall financial health and performance.