Westinghouse Air Brake Technologies Corp (WAB)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 32.48% | 31.21% | 31.06% | 30.94% | 29.12% |
| Operating profit margin | 15.52% | 13.42% | 12.36% | 11.44% | 10.15% |
| Pretax margin | 13.50% | 11.47% | 10.34% | 9.53% | 7.62% |
| Net profit margin | 10.19% | 8.64% | 7.74% | 7.29% | 5.64% |
Westinghouse Air Brake Technologies Corp has shown a consistent improvement in its profitability ratios over the five-year period from 2020 to 2024. The Gross Profit Margin has increased from 29.12% in 2020 to 32.48% in 2024, indicating the company's ability to control direct costs related to production.
Similarly, the Operating Profit Margin has experienced steady growth from 10.15% in 2020 to 15.52% in 2024, reflecting efficient management of operating expenses and higher operational efficiency.
The Pretax Margin has also displayed a positive trend, rising from 7.62% in 2020 to 13.50% in 2024, demonstrating the company's effectiveness in generating profits before accounting for taxes.
Furthermore, the Net Profit Margin has shown consistent improvement, increasing from 5.64% in 2020 to 10.19% in 2024, indicating the company's ability to increase its bottom line profitability after considering all expenses.
Overall, Westinghouse Air Brake Technologies Corp's profitability ratios reflect a strong performance and a positive trend in generating profits over the years, showcasing effective cost management 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) | 8.60% | 6.67% | 5.46% | 4.75% | 4.04% |
| Return on assets (ROA) | 5.65% | 4.29% | 3.42% | 3.02% | 2.24% |
| Return on total capital | 11.86% | 9.19% | 7.30% | 6.14% | 5.35% |
| Return on equity (ROE) | 10.46% | 7.77% | 6.27% | 5.47% | 4.09% |
Westinghouse Air Brake Technologies Corp's profitability ratios have shown a positive trend over the past five years.
1. Operating return on assets (Operating ROA) has steadily increased from 4.04% in 2020 to 8.60% in 2024. This indicates that the company has been able to generate more operating income relative to its total assets, showcasing improved operational efficiency.
2. Return on assets (ROA) has also shown a consistent uptrend, rising from 2.24% in 2020 to 5.65% in 2024. This metric reflects the company's ability to generate profit from its assets, with the increasing percentages demonstrating enhanced asset utilization and effectiveness.
3. Return on total capital has exhibited a similar positive trajectory, climbing from 5.35% in 2020 to 11.86% in 2024. This ratio illustrates how efficiently the company is utilizing its total capital to generate profits, signaling a strengthened financial performance and capital allocation.
4. Return on equity (ROE) has shown a steady increase, growing from 4.09% in 2020 to 10.46% in 2024. This indicator highlights the company's ability to generate returns for its shareholders based on the equity invested, underscoring an improved profitability and shareholder value creation.
Overall, the increasing trend in these profitability ratios suggests that Westinghouse Air Brake Technologies Corp has been effectively managing its assets, capital, and equity to drive profitability and create value for its stakeholders over the analyzed period.