Teleflex Incorporated (TFX)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 55.87% | 55.37% | 54.86% | 55.15% | 52.22% |
| Operating profit margin | 4.96% | 17.02% | 17.90% | 22.36% | 16.67% |
| Pretax margin | 2.48% | 14.59% | 15.98% | 19.91% | 14.10% |
| Net profit margin | 2.29% | 11.98% | 13.01% | 17.28% | 13.22% |
Teleflex Incorporated has shown a consistent improvement in its gross profit margin over the past five years, increasing from 52.22% in December 2020 to 55.87% in December 2024. This indicates that the company has been able to effectively control its production costs and increase efficiency in generating revenue.
In terms of operating profit margin, there was a notable fluctuation in Teleflex's performance. The margin increased significantly from 16.67% in December 2020 to 22.36% in December 2021 but then declined to 4.96% in December 2024. This could suggest fluctuations in operating expenses relative to revenue during this period.
The pretax margin of Teleflex also followed a similar trend to the operating profit margin, with an increase from 14.10% in December 2020 to 19.91% in December 2021, followed by a decrease to 2.48% in December 2024. This indicates that the company's ability to generate profit before taxes has fluctuated over the years.
The net profit margin of Teleflex has shown a consistent decline from 13.22% in December 2020 to 2.29% in December 2024. This decreasing trend suggests that after considering all expenses including taxes, the company's profitability has been under pressure during this period.
Overall, while Teleflex has shown improvement in its gross profit margin over the years, its operating, pretax, and net profit margins have been more volatile and ultimately declined, indicating potential challenges in managing operating expenses and sustaining profitability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 2.13% | 6.72% | 7.21% | 9.14% | 5.91% |
| Return on assets (ROA) | 0.98% | 4.73% | 5.24% | 7.06% | 4.69% |
| Return on total capital | 3.53% | 11.69% | 12.96% | 16.93% | 13.15% |
| Return on equity (ROE) | 1.63% | 8.02% | 9.03% | 12.93% | 10.05% |
Teleflex Incorporated's profitability ratios have shown some fluctuations over the years.
1. Operating Return on Assets (Operating ROA) has improved from 5.91% in 2020 to 9.14% in 2021, but then decreased to 7.21% in 2022 and further to 6.72% in 2023 before dropping significantly to 2.13% in 2024. This indicates that the company's operating efficiency in generating profits from its assets has varied, with a notable decline in 2024.
2. Return on Assets (ROA) followed a similar trend, increasing from 4.69% in 2020 to 7.06% in 2021, but then declining to 5.24% in 2022, 4.73% in 2023, and a more significant drop to 0.98% in 2024. The ROA measures the overall ability of the company to generate profit from its assets irrespective of operating expenses.
3. Return on Total Capital started at 13.15% in 2020, saw an improvement to 16.93% in 2021, but then decreased to 12.96% in 2022, 11.69% in 2023, and a notable decline to 3.53% in 2024. This ratio reflects the company's ability to generate returns for both debt and equity investors.
4. Return on Equity (ROE) also followed a downward trend, declining from 10.05% in 2020 to 12.93% in 2021, then dropping to 9.03% in 2022, 8.02% in 2023, and significantly decreasing to 1.63% in 2024. ROE measures the return generated for the shareholders' equity invested in the company.
Overall, the declining trend in profitability ratios, particularly in the later years, suggests that Teleflex Incorporated may be facing challenges in efficiently utilizing its assets and generating returns for its investors. Further analysis and investigation into the company's financial performance and operational efficiency may be necessary to address these declining trends and improve overall profitability.