Vicor Corporation (VICR)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 49.61% | 49.51% | 45.08% | 24.78% | 22.12% |
| Operating profit margin | -0.35% | 12.41% | 6.79% | 7.73% | 2.92% |
| Pretax margin | 2.82% | 14.55% | 7.17% | 7.90% | 3.11% |
| Net profit margin | 1.65% | 12.95% | 6.35% | 7.87% | 3.01% |
Vicor Corporation's gross profit margin has shown a consistent improvement over the years, increasing from 22.12% in 2020 to 49.61% in 2024. This indicates the company has been able to effectively control the cost of goods sold relative to its revenue.
In terms of operating profit margin, there was a significant fluctuation with a peak in 2023 at 12.41% but a decrease to -0.35% in 2024, suggesting potential challenges in managing operating expenses and generating profits from core operations.
The pretax margin also varied over the years, reaching its highest point in 2023 at 14.55%. However, in 2024, it decreased to 2.82%, indicating a decrease in profitability before accounting for taxes.
The net profit margin, reflecting the bottom line profitability, showed a similar trend as the pretax margin, peaking at 12.95% in 2023 but dropping to 1.65% in 2024. This suggests that after accounting for all expenses, including taxes, the company's net profitability has decreased.
Overall, while Vicor Corporation has shown improvement in its gross profit margin over the years, there are fluctuations in the operating, pretax, and net profit margins, indicating areas for potential improvement in managing expenses and enhancing 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) | -0.20% | 8.63% | 5.07% | 11.65% | 4.38% |
| Return on assets (ROA) | 0.96% | 9.01% | 4.74% | 11.87% | 4.52% |
| Return on total capital | -0.23% | 9.50% | 5.86% | 13.13% | 4.95% |
| Return on equity (ROE) | 1.08% | 9.91% | 5.48% | 13.37% | 5.11% |
Vicor Corporation's profitability ratios have shown some fluctuations over the period from December 31, 2020, to December 31, 2024. The Operating return on assets (Operating ROA) increased from 4.38% in 2020 to 11.65% in 2021, indicating improved operational efficiency. However, there was a decline in 2022 to 5.07%, followed by a recovery to 8.63% in 2023, but then fell sharply to -0.20% in 2024, possibly indicating operational challenges or inefficiencies.
Return on assets (ROA) followed a similar trend, with a notable increase from 4.52% in 2020 to 11.87% in 2021, then a decrease to 4.74% in 2022, and a subsequent increase to 9.01% in 2023, before dropping to 0.96% in 2024, suggesting a decline in asset profitability in the most recent year.
Return on total capital also displayed fluctuations, with an upward trend from 4.95% in 2020 to 13.13% in 2021, before declining to 5.86% in 2022, increasing to 9.50% in 2023, and dropping sharply to -0.23% in 2024, indicating potential challenges in generating returns on the total capital employed.
Return on equity (ROE) followed a similar pattern to the other ratios, with an increase from 5.11% in 2020 to 13.37% in 2021, a decline to 5.48% in 2022, an increase to 9.91% in 2023, and a decrease to 1.08% in 2024, suggesting varying levels of profitability attributable to shareholders' equity over the analyzed period.
Overall, the fluctuations in these profitability ratios suggest that Vicor Corporation experienced varying levels of operational performance and efficiency, capital utilization, and profitability over the years under review. Further analysis may be needed to identify the underlying factors contributing to these fluctuations and to address any potential challenges or opportunities for improvement.