Veralto Corporation (VLTO)

Return on sales

Veralto Corporation's profitability ratios reflect consistent performance over the three periods analyzed. The gross profit margin remained relatively stable around 60%, indicating efficient management of production costs and pricing strategies. The operating profit margin also showed stability around 23%, demonstrating effective cost control and operational efficiency.

The pretax margin, which represents the company's profitability before taxes, remained steady at approximately 21%, indicating sound financial management and effective utilization of resources. The net profit margin, which reflects the company's bottom line profitability after all expenses, increased slightly from 16.02% to 16.31% over the periods analyzed, showcasing improved efficiency in managing various costs and expenses.

Overall, Veralto Corporation's profitability ratios suggest a well-managed business with a consistent ability to generate profits across different levels of operations, from gross profit to net profit.

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Return on investment

Based on the provided data, we can analyze Veralto Corporation's profitability ratios as follows:

1. Operating Return on Assets (Operating ROA):
- Operating ROA has shown a consistent performance over the quarters of the year. It was 19.50% in June 30, 2024, and slightly declined to 18.94% in September 30, 2024, and further decreased to 18.86% in December 31, 2024. This indicates that the company is generating a good operating profit relative to its assets.

2. Return on Assets (ROA):
- ROA also demonstrates a stable performance, starting at 13.42% in June 30, 2024, decreasing to 12.87% in September 30, 2024, and then increasing to 13.00% by December 31, 2024. This ratio indicates the company's efficiency in generating profits from its total assets.

3. Return on Total Capital:
- The return on total capital ratio for Veralto Corporation has been consistently high throughout the year. It was 26.56% in June 30, 2024, decreased slightly to 25.52% by September 30, 2024, and then increased to 25.75% by December 31, 2024. This suggests that the company is effectively utilizing its total capital to generate returns.

4. Return on Equity (ROE):
- ROE reflects a robust performance for Veralto Corporation, with values well above 40% throughout the year. It started at 47.54% in June 30, 2024, declined to 41.25% in September 30, 2024, and further decreased to 40.87% by December 31, 2024. This ratio signifies the company's ability to generate strong returns for its shareholders relative to their equity investment.

Overall, Veralto Corporation's profitability ratios indicate a generally positive trend in terms of generating returns from its assets, capital, and equity over the periods provided.