Westinghouse Air Brake Technologies Corp (WAB)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 31.21% | 31.06% | 30.94% | 29.12% | 28.65% |
| Operating profit margin | 13.42% | 12.36% | 11.44% | 10.15% | 8.34% |
| Pretax margin | 11.47% | 10.34% | 9.53% | 7.62% | 5.62% |
| Net profit margin | 8.64% | 7.74% | 7.29% | 5.64% | 4.11% |
Westinghouse Air Brake Technologies Corp has shown a consistent improvement in its profitability ratios over the past five years. The gross profit margin has steadily increased from 27.78% in 2019 to 30.42% in 2023, indicating the company's ability to efficiently manage its production costs and generate higher profits on sales.
The operating profit margin has also exhibited a positive trend, rising from 8.09% in 2019 to 13.08% in 2023. This indicates that the company has been able to control its operating expenses more effectively and improve its operational efficiency.
Furthermore, the pretax margin and net profit margin have both increased significantly over the five-year period. The pretax margin increased from 5.45% in 2019 to 11.28% in 2023, while the net profit margin improved from 3.97% in 2019 to 8.42% in 2023. These improvements suggest that the company has been successful in managing its tax liabilities and other non-operating expenses, leading to stronger bottom-line profitability.
Overall, Westinghouse Air Brake Technologies Corp's profitability ratios demonstrate a consistent upward trajectory, reflecting the company's effective cost management strategies and operational efficiency over the years.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.67% | 5.46% | 4.75% | 4.04% | 3.50% |
| Return on assets (ROA) | 4.29% | 3.42% | 3.02% | 2.24% | 1.73% |
| Return on total capital | 9.19% | 7.30% | 6.14% | 5.35% | 4.64% |
| Return on equity (ROE) | 7.77% | 6.27% | 5.47% | 4.09% | 3.28% |
Westinghouse Air Brake Technologies Corp has shown consistent improvement in profitability ratios over the past five years.
1. Operating return on assets (Operating ROA) has been steadily increasing from 3.50% in 2019 to 6.67% in 2023, indicating that the company is generating more operating income per dollar of assets employed.
2. Return on assets (ROA) has also shown improvement, rising from 1.72% in 2019 to 4.29% in 2023, reflecting the company's ability to generate profits from its total assets.
3. Return on total capital has increased from 4.67% in 2019 to 8.87% in 2023, demonstrating that the company is effectively deploying its total capital to generate returns for its stakeholders.
4. Return on equity (ROE) has followed a similar positive trend, increasing from 3.27% in 2019 to 7.77% in 2023, indicating that the company is becoming more efficient in utilizing shareholders' equity to generate profits.
Overall, Westinghouse Air Brake Technologies Corp's profitability ratios exhibit a positive trajectory, suggesting improved efficiency and effectiveness in utilizing its assets and capital to generate returns for its investors.