Trimble Inc (TRMB)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 67.69% | 58.68% | 57.27% | 55.61% | 55.75% |
| Operating profit margin | 12.51% | 13.01% | 13.90% | 15.33% | 13.34% |
| Pretax margin | 54.46% | 9.40% | 15.48% | 15.70% | 12.55% |
| Net profit margin | 40.84% | 8.19% | 12.23% | 13.47% | 12.39% |
Trimble Inc's profitability ratios have shown varying trends over the years.
1. Gross Profit Margin: The company's gross profit margin has generally been increasing from 55.75% in 2020 to 67.69% in 2024. This indicates that Trimble has been effectively managing its production costs and pricing strategies to improve profitability at the gross level.
2. Operating Profit Margin: Trimble's operating profit margin increased from 13.34% in 2020 to 15.33% in 2021, but then decreased to 12.51% in 2024. This suggests some fluctuations in the company's ability to control its operating expenses and generate profits from its core operations.
3. Pretax Margin: The pretax margin showed significant fluctuations, with a notable increase from 2020 to 2021 (12.55% to 15.70%), followed by further increases in 2022 and 2024. However, there was a sharp decline in 2023 to 9.40%, indicating potential challenges in managing pre-tax expenses and income.
4. Net Profit Margin: Trimble's net profit margin has also shown variability, with a decrease from 12.39% in 2020 to 8.19% in 2023 before a substantial increase to 40.84% in 2024. This indicates fluctuations in the company's ability to generate profits after accounting for all expenses, including taxes.
In conclusion, while Trimble Inc has demonstrated improvements in gross profit margin and overall net profit margin over the years, fluctuations in operating profit margin and pretax margin suggest the need for further cost-control measures and operational efficiency to sustain profitability in the long term.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.86% | 5.18% | 7.03% | 7.90% | 6.10% |
| Return on assets (ROA) | 15.86% | 3.26% | 6.19% | 6.94% | 5.67% |
| Return on total capital | 8.07% | 11.51% | 14.21% | 16.22% | 13.14% |
| Return on equity (ROE) | 26.18% | 6.92% | 11.10% | 12.49% | 10.84% |
Trimble Inc's profitability ratios show varying levels of performance over the years.
- Operating return on assets (Operating ROA)
- The Operating ROA increased from 6.10% in 2020 to 7.90% in 2021, indicating improved efficiency in generating operating profits from the company's assets. However, it decreased slightly to 7.03% in 2022 and further to 5.18% in 2023 before falling to 4.86% in 2024. This decline suggests potential challenges in maintaining profitability relative to the assets used in operations.
- Return on assets (ROA)
- The ROA also showed a mixed trend, with an increase from 5.67% in 2020 to 6.94% in 2021, reflecting better overall profitability. However, the ratio then declined to 6.19% in 2022 and significantly dropped to 3.26% in 2023 before jumping to 15.86% in 2024. The sharp increase in 2024 indicates a notable improvement in generating profits relative to the total assets, possibly due to enhanced operational efficiency or strategic initiatives.
- Return on total capital
- The Return on total capital ratio ranged from 13.14% in 2020 to 16.22% in 2021, highlighting the company's ability to generate returns on the total capital employed. However, the ratio declined to 14.21% in 2022, 11.51% in 2023, and further to 8.07% in 2024. This decreasing trend suggests potential challenges in efficiently utilizing the total capital to generate returns for the company's stakeholders.
- Return on equity (ROE)
- The ROE increased from 10.84% in 2020 to 12.49% in 2021, indicating improved returns for the company's shareholders relative to their equity investment. However, the ratio declined to 11.10% in 2022, 6.92% in 2023, before significantly increasing to 26.18% in 2024. The fluctuating trend in ROE suggests varying levels of profitability and value creation for Trimble's equity holders over the years.
Overall, while Trimble Inc has shown improvements in certain profitability ratios, fluctuations in others indicate the company may face challenges in sustaining and optimizing profitability levels in the future. Further analysis of the company's financial performance and operational strategies would be beneficial in understanding the factors driving these trends.