SPX Corp (SPXC)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 11.47% | 36.12% | 35.83% | 25.64% | 29.36% |
| Operating profit margin | 12.95% | 3.52% | 6.11% | 6.28% | 7.59% |
| Pretax margin | 7.68% | 0.52% | 36.20% | 6.73% | 5.18% |
| Net profit margin | 5.25% | 0.01% | 35.29% | 6.42% | 4.35% |
The profitability ratios of SPX Corp have experienced fluctuations over the past five years. The gross profit margin has varied significantly, decreasing from 36.12% in 2022 to 11.47% in 2023. This suggests a reduction in the company's ability to generate profits after accounting for the cost of goods sold.
Similarly, the operating profit margin also fluctuated, with a significant increase in 2023 compared to 2022. However, the pretax margin saw a notable decline in 2023 compared to 2021, indicating a lower profitability before accounting for taxes.
The net profit margin, representing the final bottom-line profit after all expenses have been deducted, also experienced fluctuations. In 2023, the net profit margin improved compared to 2022, although it was still significantly lower than the exceptionally high margin in 2021.
Overall, the profitability ratios of SPX Corp suggest varying levels of efficiency in managing costs and generating profits over the analyzed period. The company may benefit from further analysis to understand the drivers behind these fluctuations and implement strategies to improve profitability 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) | 9.10% | 2.64% | 2.80% | 4.15% | 5.26% |
| Return on assets (ROA) | 3.68% | 0.01% | 16.18% | 4.24% | 3.01% |
| Return on total capital | 13.28% | 1.56% | 40.75% | 19.09% | 19.32% |
| Return on equity (ROE) | 7.53% | 0.02% | 38.57% | 15.47% | 12.77% |
SPX Corp's profitability ratios show a mixed performance over the past five years.
1. Operating return on assets (Operating ROA) improved significantly from 2.64% in 2022 to 9.10% in 2023. This indicates that the company is generating more operating income per dollar of assets.
2. Return on assets (ROA) also saw an improvement in 2023 compared to 2022, increasing from 0.01% to 3.68%. However, this ratio remains relatively low, indicating that the company's overall profitability in relation to its total assets is still modest.
3. Return on total capital increased to 13.28% in 2023 from 1.56% in 2022. This significant improvement suggests that the company is generating higher returns for both equity and debt holders.
4. Return on equity (ROE) improved from near-zero levels in 2022 to 7.53% in 2023. While the company's return to equity holders increased, it is still below the levels seen in the earlier years.
Overall, SPX Corp has made progress in improving its profitability ratios in 2023, particularly in terms of operating efficiency and return on capital. However, sustained growth and further enhancements in profitability metrics will be necessary to ensure long-term financial success.