Trimble Inc (TRMB)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 61.41% | 57.27% | 55.60% | 55.68% | 54.44% |
| Operating profit margin | 11.81% | 13.90% | 15.33% | 13.32% | 11.49% |
| Pretax margin | 9.40% | 15.48% | 15.70% | 12.51% | 10.53% |
| Net profit margin | 8.19% | 12.23% | 13.46% | 12.37% | 15.72% |
The profitability ratios of Trimble Inc show some fluctuations over the past five years. The gross profit margin has been on an upward trend, reaching 61.41% in 2023 from 54.44% in 2019, indicating the company's ability to maintain a high level of profitability after accounting for the cost of goods sold.
However, the operating profit margin has shown some variability, with a peak of 15.33% in 2021 and a dip to 11.81% in 2023. This indicates fluctuations in the operating efficiency and management of operating expenses during the period.
The pretax margin peaked at 15.70% in 2021 before dropping to 9.40% in 2023. This suggests that while the company was successful in generating income before taxes in 2021, there was a decrease in profitability before tax in the most recent year.
Similarly, the net profit margin reached its highest point at 15.72% in 2019, followed by a gradual decline to 8.19% in 2023. This indicates that Trimble Inc's profitability after all expenses, including taxes, has decreased over the years.
Overall, the company has been able to maintain relatively high levels of profitability, but it may need to focus on managing operating expenses more efficiently to stabilize and potentially improve its profit margins in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.70% | 7.03% | 7.90% | 6.10% | 5.66% |
| Return on assets (ROA) | 3.26% | 6.19% | 6.94% | 5.67% | 7.74% |
| Return on total capital | 6.38% | 9.69% | 10.71% | 8.59% | 7.93% |
| Return on equity (ROE) | 6.92% | 11.10% | 12.49% | 10.84% | 16.49% |
Trimble Inc's profitability ratios have shown some fluctuations over the past five years. Operating return on assets (Operating ROA) has ranged from 4.70% to 7.90%, indicating the company's ability to generate operating income relative to its total assets, with a slight decrease in 2023 compared to the previous year.
Return on assets (ROA) has fluctuated between 3.26% and 7.74%, reflecting the company's overall ability to generate profit from its assets, with a significant decrease in 2023 compared to the previous year, possibly due to changes in asset utilization or profitability.
Return on total capital has varied between 6.38% and 10.71%, showing the company's efficiency in generating profits from both equity and debt financing. There was a decrease in this ratio in 2023 compared to the prior year.
Return on equity (ROE) has ranged from 6.92% to 16.49%, indicating the company's ability to generate profit for its shareholders from the equity invested. While the ROE has decreased in 2023 compared to the previous year, it has shown considerable fluctuation over the period.
Overall, these profitability ratios suggest that Trimble Inc has experienced some fluctuations in its profitability performance over the past five years, indicating potential changes in operational efficiency, asset utilization, and shareholder value creation.