TE Connectivity Ltd (TEL)
Profitability ratios
Return on sales
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 34.43% | 31.68% | 32.34% | 32.87% | 30.81% |
| Operating profit margin | 17.65% | 14.44% | 17.00% | 16.37% | 4.43% |
| Pretax margin | 17.65% | 14.25% | 16.86% | 16.04% | 4.47% |
| Net profit margin | 20.15% | 11.97% | 14.97% | 15.21% | -1.99% |
TE Connectivity Ltd has shown a positive trend in profitability ratios over the past five years. The gross profit margin has improved steadily, reaching 34.43% in 2024, indicating the company's ability to efficiently manage its production costs. The operating profit margin also exhibited an upward trajectory, standing at 17.65% in 2024, reflecting strong operational efficiency and cost management.
Similarly, the pretax margin increased over the years, reaching 17.65% in 2024, showcasing the company's ability to generate profits before accounting for taxes. The most notable improvement can be observed in the net profit margin, which rose to 20.15% in 2024. This indicates that TE Connectivity Ltd has been successful in controlling its overall expenses, resulting in a higher proportion of revenues translating into net income.
Overall, the consistent improvement in profitability ratios reflects TE Connectivity Ltd's robust financial performance and efficiency in managing its operations, ultimately leading to enhanced profitability for the company and increased value for its stakeholders.
Return on investment
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 12.23% | 10.61% | 13.26% | 11.34% | 2.79% |
| Return on assets (ROA) | 13.97% | 8.80% | 11.68% | 10.53% | -1.25% |
| Return on total capital | 17.68% | 15.61% | 19.73% | 17.02% | 4.56% |
| Return on equity (ROE) | 25.57% | 16.54% | 22.28% | 21.04% | -2.54% |
TE Connectivity Ltd's profitability ratios have shown varying trends over the past five years. The operating return on assets (Operating ROA) has fluctuated but generally increased from 2.79% in 2020 to 12.23% in 2024, indicating an improvement in the company's operational efficiency in generating profits from its assets.
Return on assets (ROA) has also displayed an upward trend, reaching 13.97% in 2024 from -1.25% in 2020. This suggests that the company has been able to increase its profitability in relation to its total assets over the years.
Return on total capital has consistently improved from 4.56% in 2020 to 17.68% in 2024, reflecting TE Connectivity Ltd's effectiveness in generating returns from both equity and debt capital.
Return on equity (ROE) has exhibited significant growth, rising from -2.54% in 2020 to 25.57% in 2024. This indicates that the company has been successful in utilizing shareholder equity to generate profits for its investors.
Overall, the profitability ratios of TE Connectivity Ltd have shown positive trends over the years, demonstrating the company's ability to generate profits efficiently and effectively utilize its assets and capital to create value for its shareholders.