TE Connectivity Ltd (TEL)
Profitability ratios
Return on sales
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 32.56% | 31.68% | 31.45% | 31.43% | 32.05% | 32.34% | 32.90% | 33.04% | 32.78% | 32.87% | 32.07% | 30.95% | 30.84% | 30.78% | 31.36% | 32.43% | 32.58% | 32.81% | 33.26% | 32.95% |
| Operating profit margin | 15.68% | 14.44% | 14.31% | 14.76% | 15.93% | 17.00% | 17.58% | 17.83% | 17.53% | 16.37% | 14.81% | 11.83% | 4.12% | 4.42% | 5.21% | 7.84% | 14.85% | 14.77% | 15.47% | 15.31% |
| Pretax margin | 15.60% | 14.25% | 14.09% | 14.52% | 15.66% | 16.86% | 17.28% | 17.52% | 17.27% | 16.04% | 14.63% | 11.79% | 4.08% | 4.47% | 5.22% | 7.71% | 14.73% | 13.66% | 14.18% | 13.95% |
| Net profit margin | 20.79% | 11.97% | 12.69% | 13.02% | 13.92% | 14.97% | 16.04% | 16.20% | 16.13% | 15.21% | 11.85% | 8.26% | 0.91% | -1.99% | -0.81% | 5.37% | 12.05% | 13.77% | 23.03% | 20.26% |
TE Connectivity Ltd's profitability ratios show fluctuations over the past few quarters. The gross profit margin has remained relatively stable around the low 30% range, indicating consistent efficiency in managing production costs. However, the operating profit margin has shown more variability, with a decreasing trend in recent quarters, possibly due to increased operating expenses or other factors affecting profitability at the operating level.
The pretax margin has also experienced fluctuations, reflecting changes in non-operating income or expenses. Despite the variability, the company has generally maintained a double-digit pretax margin, indicating a reasonable level of profitability before accounting for taxes.
Net profit margin, which represents the bottom line profitability after all expenses, has shown significant variations. While the company achieved high net profit margins in some quarters, there are instances of negative net profit margins, indicating losses during those periods. The volatility in net profit margin suggests that TE Connectivity Ltd's bottom line performance has been affected by various factors, including operational efficiency, external economic conditions, and one-off events impacting profitability.
Overall, TE Connectivity Ltd's profitability ratios highlight the importance of monitoring both operating and net profit margins to assess the company's overall financial performance and sustainability. Further analysis and investigation into the underlying reasons for the fluctuations in profitability ratios may be necessary to gain a deeper understanding of the company's financial health.
Return on investment
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 10.84% | 10.61% | 10.73% | 11.25% | 12.11% | 13.26% | 12.91% | 12.82% | 12.42% | 11.34% | 10.07% | 7.35% | 2.54% | 2.79% | 3.37% | 5.27% | 9.84% | 10.04% | 10.65% | 11.10% |
| Return on assets (ROA) | 14.37% | 8.80% | 9.52% | 9.92% | 10.58% | 11.68% | 11.78% | 11.65% | 11.43% | 10.53% | 8.06% | 5.13% | 0.56% | -1.25% | -0.53% | 3.61% | 7.98% | 9.36% | 15.86% | 14.69% |
| Return on total capital | 15.34% | 15.61% | 15.43% | 16.33% | 17.60% | 19.73% | 19.91% | 19.74% | 18.24% | 17.02% | 15.59% | 11.87% | 4.16% | 4.56% | 5.51% | 8.22% | 14.32% | 13.58% | 14.31% | 15.29% |
| Return on equity (ROE) | 25.24% | 16.54% | 18.03% | 19.16% | 19.70% | 22.28% | 23.86% | 23.70% | 21.98% | 21.04% | 16.70% | 11.00% | 1.14% | -2.54% | -1.10% | 7.71% | 15.10% | 17.45% | 29.50% | 28.32% |
TE Connectivity Ltd's profitability ratios have fluctuated over the past few quarters. The Operating Return on Assets (Operating ROA) has generally remained above 10%, ranging from a low of 7.35% in June 2021 to a high of 13.26% in September 2022. This indicates the company's ability to generate operating income relative to its total assets.
Return on Assets (ROA) has also varied, with values ranging from negative in some quarters to a high of 15.86% in March 2019. The trend shows some inconsistency in the company's ability to generate profits from its assets.
Return on Total Capital has fluctuated as well, with values ranging from a low of 4.16% in December 2020 to a high of 19.91% in September 2022. This metric reflects the company's efficiency in generating returns from both equity and debt capital.
Return on Equity (ROE) has exhibited significant variability, with values ranging from negative in some quarters to a high of 29.50% in March 2019. This ratio highlights the company's ability to generate profits for its shareholders from their investments.
Overall, TE Connectivity Ltd's profitability ratios show a mix of performance, with some quarters demonstrating strong profitability and others showing room for improvement in generating returns for both assets and equity.