Vontier Corp (VNT)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|
| Gross profit margin | 74.52% | 46.32% | 45.64% | 44.48% |
| Operating profit margin | 17.64% | 18.74% | 19.93% | 17.53% |
| Pretax margin | 15.69% | 17.10% | 18.28% | 17.23% |
| Net profit margin | 12.23% | 13.01% | 14.14% | 12.80% |
Over the past five years, Vontier Corporation has generally shown an increasing trend in gross profit margins, indicating improved efficiency in managing direct costs related to production. The company's ability to control operating expenses has fluctuated, with operating profit margins decreasing slightly in recent years. This may suggest potential inefficiencies or increased costs in the company's operations.
Furthermore, Vontier's pretax margin has experienced fluctuations, with a noticeable decline in 2020 compared to previous years. This could be attributed to various factors such as changes in tax regulations or operational challenges affecting profitability before taxes.
In terms of net profit margin, Vontier has seen fluctuations, with a peak in 2021 followed by a slight decrease in recent years. This ratio reflects the company's overall profitability after accounting for all expenses and taxes.
Overall, while Vontier Corporation has shown resilient profitability ratios over the years, there are noticeable fluctuations in operating profit margin, pretax margin, and net profit margin. It is important for the company to continue monitoring and improving its operational efficiency and cost management to sustain and potentially enhance its profitability in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 12.65% | 13.31% | 13.38% | 15.24% |
| Return on assets (ROA) | 8.78% | 9.24% | 9.49% | 11.13% |
| Return on total capital | 17.65% | 18.28% | 18.46% | 23.61% |
| Return on equity (ROE) | 42.33% | 69.61% | 72.47% | 182.11% |
Vontier Corporation's profitability ratios show a mixed trend over the past five years. The Operating ROA has decreased from 19.91% in 2019 to 12.65% in 2023, indicating a decline in the company's ability to generate operating income from its assets. Similarly, the ROA has also decreased from 15.43% in 2019 to 8.78% in 2023, reflecting a decrease in the company's overall profitability relative to its total assets.
On the other hand, the Return on Total Capital has shown fluctuations but remains relatively high, with a significant drop from 30.40% in 2019 to 17.06% in 2023. This ratio indicates the company's ability to generate returns on the total invested capital, including debt and equity.
The ROE, which shows the return generated on shareholder equity, has been volatile over the years. There was a substantial increase from 24.10% in 2019 to 182.11% in 2020, followed by a decrease to 42.33% in 2023. This suggests that the company's profitability relative to its shareholders' equity has been inconsistent.
Overall, the analysis of Vontier Corporation's profitability ratios indicates a mixed performance in terms of generating returns on assets, total capital, and equity over the five-year period. The company may need to focus on improving its operational efficiency and managing its capital structure to enhance profitability in the future.