Visteon Corp (VC)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 13.74% | 12.32% | 9.80% | 9.16% | 9.62% |
| Operating profit margin | 8.38% | 7.08% | 5.40% | 3.79% | 2.83% |
| Pretax margin | 7.71% | 6.50% | 4.66% | 2.92% | -0.78% |
| Net profit margin | 7.09% | 12.29% | 3.30% | 1.48% | -1.88% |
Based on the provided data, Visteon Corp's profitability ratios have shown some fluctuations over the years.
1. Gross Profit Margin: Visteon Corp's gross profit margin has ranged from 9.16% to 13.74% over the past five years, with an increasing trend from 2020 to 2024. This indicates that the company has been able to improve its efficiency in controlling the cost of goods sold and generating gross profit.
2. Operating Profit Margin: The operating profit margin of Visteon Corp has also shown an upward trend from 2.83% in 2020 to 8.38% in 2024. This suggests that the company has been successful in managing its operating expenses more effectively, resulting in higher profitability from its core operations.
3. Pretax Margin: Visteon Corp's pretax margin has improved consistently over the years, reaching 7.71% in 2024 from a negative margin in 2020. This indicates that the company has been able to generate higher earnings before taxes relative to its revenue, showcasing improved financial performance.
4. Net Profit Margin: The net profit margin of Visteon Corp has shown significant volatility, with a notable increase in 2023 followed by a decline in 2024. This could indicate changes in tax implications or other non-operating factors affecting the company's bottom line profitability.
In summary, Visteon Corp has demonstrated improvements in its profitability ratios over the years, particularly in operating profit margin and pretax margin. However, the fluctuation in net profit margin may require further analysis to understand the underlying factors impacting the company's overall 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) | 11.32% | 10.27% | 8.29% | 4.70% | 3.17% |
| Return on assets (ROA) | 9.57% | 17.82% | 5.06% | 1.84% | -2.11% |
| Return on total capital | 25.47% | 26.40% | 28.00% | 17.64% | -0.78% |
| Return on equity (ROE) | 22.29% | 46.82% | 18.37% | 7.95% | -12.40% |
Visteon Corp's profitability ratios show a positive trend over the period from 2020 to 2024.
1. Operating Return on Assets (Operating ROA): The company's operating return on assets has steadily increased from 3.17% in 2020 to 11.32% in 2024, indicating an improvement in the efficiency of utilizing its assets to generate operating income.
2. Return on Assets (ROA): The return on assets, which was negative at -2.11% in 2020, turned positive and increased to 9.57% in 2024. This suggests that the company has become more effective in generating profit from its total assets over the years.
3. Return on Total Capital: The return on total capital has shown a positive trend, starting at -0.78% in 2020 and steadily increasing to 25.47% in 2024. This demonstrates the company's ability to generate returns for both equity and debt holders invested in the business.
4. Return on Equity (ROE): Visteon Corp's return on equity has improved significantly from -12.40% in 2020 to 22.29% in 2024. This indicates that the company has been successful in increasing profits relative to the shareholders' equity, reflecting enhanced profitability.
Overall, the increasing profitability ratios suggest that Visteon Corp has been effectively managing its assets, generating profits, and creating value for its shareholders over the analyzed period.