Vishay Intertechnology Inc (VSH)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 21.32% | 28.64% | 30.28% | 27.40% | 23.26% |
| Operating profit margin | 0.19% | 14.29% | 17.60% | 14.44% | 8.38% |
| Pretax margin | -0.08% | 13.74% | 16.97% | 13.41% | 6.33% |
| Net profit margin | -1.06% | 9.52% | 12.26% | 9.20% | 4.91% |
Vishay Intertechnology Inc has shown a positive trend in its gross profit margin over the years, increasing from 23.26% in 2020 to 30.28% in 2022 before experiencing a slight decline to 28.64% in 2023. However, there was a significant drop in the gross profit margin to 21.32% in 2024.
The operating profit margin of the company has also improved steadily, rising from 8.38% in 2020 to 17.60% in 2022, before decreasing to 14.29% in 2023. However, there was a substantial decrease to 0.19% in 2024, which may indicate challenges in controlling operating expenses.
In terms of the pretax margin, Vishay Intertechnology Inc displayed a positive performance from 6.33% in 2020 to 16.97% in 2022. However, there was a decline to 13.74% in 2023 and a significant negative margin of -0.08% in 2024, signaling potential issues in generating pre-tax profits.
The net profit margin of the company also followed a similar pattern, increasing from 4.91% in 2020 to 12.26% in 2022, before dropping to 9.52% in 2023. However, there was a notable decrease to -1.06% in 2024, which may raise concerns about the company's profitability and efficiency in managing costs and expenses.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 0.14% | 11.47% | 15.92% | 13.20% | 6.65% |
| Return on assets (ROA) | -0.76% | 7.64% | 11.09% | 8.41% | 3.90% |
| Return on total capital | 1.24% | 22.14% | 29.84% | 25.93% | 12.68% |
| Return on equity (ROE) | -1.54% | 14.75% | 20.96% | 17.09% | 7.80% |
Vishay Intertechnology Inc's profitability ratios have shown some fluctuations over the five-year period from 2020 to 2024.
1. Operating return on assets (Operating ROA) has demonstrated an increasing trend from 6.65% in 2020 to 15.92% in 2022, before declining slightly to 11.47% in 2023 and significantly to 0.14% in 2024. This ratio indicates the company's ability to generate profits from its operational activities relative to its total assets.
2. Return on assets (ROA) also followed a similar pattern, starting at 3.90% in 2020, reaching a peak of 11.09% in 2022, before dropping to -0.76% in 2024. ROA evaluates how efficiently the company is utilizing its assets to generate earnings.
3. Return on total capital reflects the return earned on the total capital employed by the company. It surged from 12.68% in 2020 to 29.84% in 2022, but then declined to 1.24% in 2024. This ratio indicates the overall profitability of the company in relation to its total capital.
4. Return on equity (ROE) portrays the return generated on the shareholders' equity. The trend for ROE mirrors the other ratios, with an increase from 7.80% in 2020 to 20.96% in 2022, followed by declines to -1.54% in 2024. ROE is important as it shows how well the company is utilizing shareholders' investments to generate profit.
Overall, although there have been fluctuations over the years, it is essential for Vishay Intertechnology Inc to closely monitor and manage its profitability ratios to ensure sustained growth and value creation for its stakeholders.