Veeco Instruments Inc (VECO)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 42.38% | 42.77% | 40.73% | 41.54% | 42.78% |
| Operating profit margin | 9.34% | 10.49% | 9.33% | 9.72% | 4.97% |
| Pretax margin | 9.60% | -4.25% | 7.89% | 4.40% | -1.86% |
| Net profit margin | 10.28% | -4.56% | 25.84% | 4.46% | -1.85% |
Veeco Instruments Inc has shown a consistent gross profit margin over the years, gradually decreasing from 42.78% in 2020 to 40.73% in 2022, before recovering to 42.38% in 2024. This indicates a relatively stable level of profitability on the sale of goods.
In terms of operating profit margin, the company experienced a significant increase from 4.97% in 2020 to 10.49% in 2023, before declining slightly to 9.34% in 2024. This suggests effective management of operating expenses and a positive trend in generating profits from core operations.
The pretax margin for Veeco Instruments Inc has been volatile, ranging from -1.86% in 2020 to 9.60% in 2024. The company faced challenges in 2020 and 2023, when it reported negative margins, but managed to significantly improve profitability in the following years.
Veeco's net profit margin also exhibited variability, with negative margins in 2020 and 2023, but notable improvements in 2021 and 2022, reaching 25.84% in 2022. The net profit margin indicates the company's ability to convert revenue into profit after accounting for all expenses.
Overall, Veeco Instruments Inc has shown improvements in profitability margins over the years, with some volatility in certain periods. It is essential for the company to continue monitoring and managing its margins effectively to sustain and enhance its profitability in the future.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.35% | 5.69% | 5.34% | 6.31% | 2.51% |
| Return on assets (ROA) | 5.89% | -2.47% | 14.80% | 2.90% | -0.93% |
| Return on total capital | 10.36% | -2.46% | 10.44% | 12.96% | 5.86% |
| Return on equity (ROE) | 9.56% | -4.52% | 28.89% | 5.95% | -2.05% |
Veeco Instruments Inc's profitability ratios have shown varying trends over the years.
- Operating return on assets (Operating ROA) has improved steadily from 2.51% in December 2020 to 5.35% in December 2024, indicating the company's ability to generate operating income relative to its total assets.
- Return on assets (ROA) experienced fluctuations, turning negative in December 2020 to 14.80% in December 2022, and then decreasing to 5.89% in December 2024. This metric reflects the overall profitability of the company's assets.
- Return on total capital exhibited a similar pattern as ROA, peaking at 12.96% in December 2021 before decreasing to 10.36% in December 2024. This ratio measures the efficiency of both debt and equity in generating profits.
- Return on equity (ROE) declined from -2.05% in December 2020 to 9.56% in December 2024, with significant improvement in 2022 when it reached 28.89%. ROE reflects the profitability for each dollar of shareholders' equity.
Overall, while some ratios showed positive trends, others experienced fluctuations and volatility. Veeco Instruments Inc should continue to monitor and improve these ratios to ensure sustained profitability and efficiency.