Visteon Corp (VC)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 12.32% | 9.80% | 9.16% | 9.62% | 11.00% |
| Operating profit margin | 1.44% | -0.03% | -4.22% | -8.48% | -7.27% |
| Pretax margin | 6.02% | 4.50% | 2.60% | -1.10% | 3.19% |
| Net profit margin | 12.29% | 3.30% | 1.48% | -2.20% | 2.38% |
The profitability ratios of Visteon Corp. indicate varying levels of performance over the past five years.
1. Gross Profit Margin: The gross profit margin has shown improvement over the years, increasing from 9.16% in 2021 to 12.32% in 2023. This suggests that the company has been able to effectively control its cost of goods sold and generate more profitable revenue.
2. Operating Profit Margin: Visteon Corp.'s operating profit margin has also exhibited a positive trend, rising from 2.85% in 2021 to 6.83% by the end of 2023. This indicates that the company has been able to efficiently manage its operating expenses and improve profitability from its core business operations.
3. Pretax Margin: The pretax margin demonstrates the company's ability to generate profits before considering taxes. Visteon's pretax margin has increased steadily over the years, reaching 6.50% in 2023. This suggests improved operational efficiency and better management of non-operating expenses.
4. Net Profit Margin: The net profit margin reflects the overall profitability of Visteon Corp. after accounting for all expenses, including taxes. The company's net profit margin has shown significant fluctuations over the years, with a notable improvement in 2023 at 12.29% compared to the negative margin in 2020. This indicates that the company has made efforts to enhance its bottom line and generate higher net income for shareholders.
In conclusion, Visteon Corp.'s profitability ratios demonstrate a positive trend with improvements in gross profit margin, operating profit margin, and net profit margin over the past five years. However, the company should continue to focus on maintaining and enhancing its profitability by monitoring and managing expenses effectively.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 2.09% | -0.04% | -5.24% | -9.51% | -9.42% |
| Return on assets (ROA) | 17.82% | 5.06% | 1.84% | -2.47% | 3.08% |
| Return on total capital | 18.81% | 18.10% | 9.48% | -1.63% | 12.92% |
| Return on equity (ROE) | 46.82% | 18.37% | 7.95% | -14.47% | 14.58% |
Visteon Corp.'s profitability ratios have shown significant improvements over the last five years.
1. Operating return on assets (Operating ROA) has been on an upward trend from 4.54% in 2019 to 9.90% in 2023. This indicates that the company's operating efficiency in generating profits from its total assets has improved steadily over the period.
2. Return on assets (ROA) has fluctuated but generally increased from -2.47% in 2020 to 17.82% in 2023. This measure reflects the company's ability to generate profits from its assets regardless of financing structure or debt levels.
3. Return on total capital has also exhibited a positive trend, rising from 7.88% in 2020 to 19.65% in 2023. This metric assesses the overall return generated from all sources of capital employed by the company.
4. Return on equity (ROE) has shown remarkable growth, improving from -14.47% in 2020 to 46.82% in 2023. This indicates that Visteon Corp. has been effective in utilizing shareholders' equity to generate profits for them.
Overall, the company's profitability ratios have demonstrated substantial improvement, suggesting that Visteon Corp. has been successful in enhancing its operational efficiency and profitability over the analyzed period.