Vontier Corp (VNT)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 74.13% | 74.52% | 46.32% | 45.64% | 44.48% |
| Operating profit margin | 18.08% | 17.64% | 18.74% | 19.93% | 17.53% |
| Pretax margin | 16.75% | 15.69% | 17.10% | 18.28% | 17.23% |
| Net profit margin | 14.21% | 12.23% | 13.01% | 14.14% | 12.80% |
Vontier Corp's profitability ratios show a positive trend over the years. The gross profit margin has consistently improved from 44.48% in 2020 to 74.13% in 2024, indicating the company's ability to generate profits after accounting for the cost of goods sold.
Similarly, the operating profit margin has shown fluctuations but has generally increased from 17.53% in 2020 to 18.08% in 2024. This suggests the company's efficiency in managing operating expenses to generate profits from its core business activities.
The pretax margin, on the other hand, experienced some variability but remained relatively stable over the years, ranging from 15.69% in 2023 to 18.28% in 2021. This metric reflects Vontier Corp's ability to generate profits before accounting for taxes.
Finally, the net profit margin, which indicates the company's bottom-line profitability, has shown a positive trend, increasing from 12.80% in 2020 to 14.21% in 2024. This improvement demonstrates the company's ability to control costs and expenses to maximize profits for its shareholders.
Overall, Vontier Corp's profitability ratios reflect a generally positive performance, with improvements in gross, operating, pretax, and net profit margins over the years, showcasing the company's strong profitability and operational efficiency.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 12.46% | 12.65% | 13.31% | 13.38% | 15.24% |
| Return on assets (ROA) | 9.79% | 8.78% | 9.24% | 9.49% | 11.13% |
| Return on total capital | 17.09% | 17.65% | 18.28% | 18.46% | 23.61% |
| Return on equity (ROE) | 40.17% | 42.33% | 69.61% | 72.47% | 182.11% |
Based on the profitability ratios provided for Vontier Corp, we observe the following trends:
1. Operating return on assets (Operating ROA) has shown a slight decline over the years, decreasing from 15.24% in 2020 to 12.46% in 2024. This indicates that the company's operating performance in generating profits from its assets has decreased gradually.
2. Return on assets (ROA) has been somewhat volatile, ranging from 8.78% in 2023 to 11.13% in 2020. Although there was a slight increase in 2024 to 9.79%, the overall trend shows a decrease in the profitability of the company relative to its total assets.
3. Return on total capital has also shown a decreasing trend from 23.61% in 2020 to 17.09% in 2024. This ratio reflects the company's ability to generate returns for both equity and debt holders, indicating a declining trend in overall profitability.
4. Return on equity (ROE) experienced a significant decrease over the years, plummeting from 182.11% in 2020 to 40.17% in 2024. This signifies a substantial decline in the profitability of the company in relation to the equity invested by shareholders.
In summary, Vontier Corp's profitability ratios demonstrate a general downward trend, indicating challenges in generating returns from assets, capital, and equity over the specified period. This may raise concerns about the company's overall performance and efficiency in utilizing its resources effectively to generate profits for its stakeholders.