Teledyne Technologies Incorporated (TDY)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 42.94% | 43.29% | 42.69% | 39.91% | 38.26% |
| Operating profit margin | 17.44% | 18.58% | 17.81% | 13.53% | 11.95% |
| Pretax margin | 16.54% | 17.02% | 16.64% | 11.57% | 15.22% |
| Net profit margin | 14.45% | 15.72% | 14.45% | 9.65% | 13.02% |
Teledyne Technologies Incorporated has shown an improvement in its profitability ratios over the years. The gross profit margin has steadily increased from 38.26% in December 2020 to 42.94% in December 2024, indicating the company's ability to efficiently manage its production costs.
The operating profit margin has also shown a positive trend, rising from 11.95% in December 2020 to 17.44% in December 2024. This indicates that Teledyne has been able to control its operating expenses and generate higher profits from its core business operations.
The pretax margin, which represents the company's profitability before taxes, has fluctuated over the years but has remained relatively stable overall. It stood at 15.22% in December 2020 and slightly decreased to 16.54% by December 2024.
The net profit margin, which indicates the company's bottom line profitability after all expenses have been deducted, shows a similar trend to the pretax margin. It decreased from 13.02% in December 2020 to 9.65% in December 2021 but then gradually improved to 14.45% by December 2024.
Overall, Teledyne Technologies has demonstrated a strong performance in managing its profitability ratios, with consistent improvements in gross profit margin and operating profit margin over the years, despite some fluctuations in pretax and net profit margins.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.97% | 7.21% | 6.77% | 4.32% | 7.28% |
| Return on assets (ROA) | 5.77% | 6.10% | 5.49% | 3.08% | 7.93% |
| Return on total capital | 10.43% | 11.33% | 12.29% | 8.01% | 15.14% |
| Return on equity (ROE) | 8.58% | 9.61% | 9.67% | 5.84% | 12.45% |
Teledyne Technologies Incorporated's profitability ratios show a fluctuating trend over the past five years.
1. Operating Return on Assets (Operating ROA) declined from 7.28% in December 2020 to 4.32% in December 2021 before recovering to 6.77% by December 2022. It further improved to 7.21% by December 2023 and slightly dropped to 6.97% by December 2024. This ratio indicates the company's operating efficiency in generating profits from its assets, showing some volatility but overall maintaining a moderate level.
2. Return on Assets (ROA) also followed a similar pattern, starting at 7.93% in December 2020, decreasing to 3.08% in December 2021, and gradually rising to 5.77% by December 2024. ROA measures the company's ability to generate profits from its total assets, and Teledyne's performance in this aspect improved over the five-year period.
3. Return on Total Capital decreased from 15.14% in December 2020 to 8.01% in December 2021, then gradually increased to 10.43% by December 2024. This ratio reflects the company's efficiency in generating returns from both equity and debt capital. Despite the initial decline, there was a recovery trend in later years, albeit not reaching the initial level in 2020.
4. Return on Equity (ROE) declined from 12.45% in December 2020 to 5.84% in December 2021, showing signs of a significant drop. It then improved to 8.58% by December 2024. ROE signifies the company's ability to generate a return on the shareholders' equity. Teledyne experienced some challenges in profitability in the early years of this period but showed a modest recovery by the end.
In summary, while Teledyne Technologies Incorporated faced some variability in its profitability ratios over the five-year period, there were signs of improvement in profitability performance towards the later years.