Sensata Technologies Holding NV (ST)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 29.39% | 31.11% | 32.69% | 33.46% | 30.42% |
| Operating profit margin | 3.80% | 4.48% | 12.63% | 16.57% | 11.09% |
| Pretax margin | -0.30% | 0.44% | 9.85% | 10.83% | 5.44% |
| Net profit margin | 3.27% | -0.10% | 7.71% | 9.52% | 5.39% |
Sensata Technologies Holding NV's profitability has shown some fluctuation over the years based on the provided data.
1. Gross Profit Margin: The company's gross profit margin has seen a general downward trend from 2021 to 2024, decreasing from 33.46% in 2021 to 29.39% in 2024. This indicates that the company's cost of goods sold has been increasing relative to its revenues.
2. Operating Profit Margin: Sensata's operating profit margin experienced significant variability, peaking at 16.57% in 2021 but declining sharply to 3.80% in 2024. This suggests that the company's operating expenses have been increasing faster than its operating income over the years.
3. Pre-tax Margin: The pre-tax margin of Sensata Technologies fluctuated notably, reaching its peak at 10.83% in 2021 and dropping to -0.30% in 2024. The negative pre-tax margin in 2024 indicates that the company's pre-tax income did not cover its pre-tax expenses.
4. Net Profit Margin: The company's net profit margin also varied significantly, with a positive margin in most years but turning negative in 2023. This negative margin in 2023 suggests that Sensata's net income was insufficient to cover its total revenues.
Overall, Sensata Technologies Holding NV's performance in terms of profitability ratios has shown signs of instability, with fluctuations in its margins over the years. Further analysis and investigation are needed to understand the drivers behind these changes and to assess the company's financial health accurately.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 2.09% | 2.37% | 5.81% | 7.35% | 4.31% |
| Return on assets (ROA) | 1.80% | -0.05% | 3.55% | 4.22% | 2.09% |
| Return on total capital | 4.98% | 6.06% | 18.50% | 19.17% | 12.47% |
| Return on equity (ROE) | 4.44% | -0.13% | 9.99% | 11.75% | 6.07% |
Sensata Technologies Holding NV has shown variations in its profitability ratios over the five-year period from 2020 to 2024.
1. Operating return on assets (Operating ROA) has fluctuated, starting at 4.31% in 2020, peaking at 7.35% in 2021, and then declining to 2.09% by 2024. This ratio indicates the company's ability to generate operating income from its assets.
2. Return on assets (ROA) also experienced fluctuations, with a positive trend from 2020 to 2021, turning negative in 2023, and then recovering in 2024. ROA represents the overall profitability of the company in generating earnings from its total assets.
3. Return on total capital exhibited a similar pattern to ROA, starting at 12.47% in 2020, reaching a peak of 19.17% in 2021, and declining to 4.98% in 2024. This ratio measures the efficiency of the company in generating returns from its total invested capital.
4. Return on equity (ROE) showed a notable increase from 2020 to 2021, but then dropped significantly in 2023 before recovering slightly in 2024. ROE reflects the company's profitability from the shareholders' perspective.
Overall, Sensata Technologies Holding NV's profitability ratios indicate varying levels of performance over the period, with some fluctuations that may require further analysis to understand the underlying factors influencing the company's profitability.