SPX Corp (SPXC)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 40.29% | 38.48% | 35.86% | 35.41% | 30.71% |
| Operating profit margin | 15.54% | 12.74% | 3.49% | 6.04% | 8.46% |
| Pretax margin | 12.87% | 10.70% | 1.86% | 5.73% | 7.47% |
| Net profit margin | 10.11% | 5.16% | 1.36% | 4.84% | 6.35% |
SPX Corp's profitability ratios have shown a positive trend over the years. The gross profit margin has steadily increased from 30.71% in 2020 to 40.29% in 2024, indicating the company's ability to control its production costs and increase efficiency in generating sales.
However, the operating profit margin initially decreased from 8.46% in 2020 to 3.49% in 2022 before experiencing a significant improvement, reaching 15.54% in 2024. This indicates that the company may have faced challenges in managing its operating expenses in the early years but has since made substantial improvements in cost control and operational efficiency.
Similarly, the pretax margin declined from 7.47% in 2020 to 1.86% in 2022 but rebounded strongly to 12.87% in 2024. This suggests that SPX Corp may have faced tax-related or other financial challenges initially but managed to overcome them and improve its pre-tax profitability in later years.
The net profit margin also followed a similar pattern, decreasing from 6.35% in 2020 to 1.36% in 2022 before jumping to 10.11% in 2024. This indicates that the company's bottom-line profitability was impacted by various factors early on but has since seen significant improvement through better cost management and revenue generation.
Overall, SPX Corp's profitability ratios demonstrate a positive trend with improvements in gross profit margin, operating profit margin, pretax margin, and net profit margin over the years, signaling the company's efforts to enhance efficiency, control costs, and boost 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) | 11.36% | 9.10% | 2.64% | 2.80% | 5.74% |
| Return on assets (ROA) | 7.39% | 3.68% | 1.03% | 2.24% | 4.31% |
| Return on total capital | 21.75% | 18.65% | 3.37% | 7.54% | 15.91% |
| Return on equity (ROE) | 14.48% | 7.53% | 1.83% | 5.35% | 15.73% |
SPX Corp's profitability ratios have exhibited some fluctuations over the past five years.
1. Operating return on assets (Operating ROA) saw a decline from 5.74% in 2020 to 2.64% in 2022, before experiencing a significant improvement to 11.36% in 2024. This ratio measures the company's operating income generated per dollar of assets.
2. Return on assets (ROA) also followed a similar trend, dropping from 4.31% in 2020 to 1.03% in 2022, then rising to 7.39% in 2024. ROA reflects the company's overall profitability in relation to its total assets.
3. Return on total capital decreased from 15.91% in 2020 to 3.37% in 2022, then surged to 21.75% in 2024. This ratio evaluates the company's profitability in relation to the total capital employed.
4. Return on equity (ROE) declined from 15.73% in 2020 to 1.83% in 2022, but rebounded to 14.48% in 2024. ROE indicates the profitability of the company in relation to its shareholder equity.
Overall, while there were fluctuations in profitability ratios, SPX Corp showed a strong recovery in profitability by the end of the period, particularly in 2024. Further analysis and investigation into the company's strategies and operational efficiency could provide insights into these changes and their implications for stakeholders.