Waters Corporation (WAT)
Profitability ratios
Return on sales
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 59.96% | 59.58% | 57.30% | 57.73% | 59.20% | 59.53% | 61.95% | 72.06% | 63.62% | 63.31% | 63.18% | 61.89% | 62.42% | 63.30% | 63.10% | 52.72% | 60.02% | 60.52% | 60.73% | 61.47% |
| Operating profit margin | 28.41% | 28.26% | 27.71% | 27.78% | 28.61% | 28.82% | 29.11% | 29.24% | 29.88% | 29.25% | 29.73% | 29.97% | 29.98% | 30.59% | 30.08% | 30.39% | 27.87% | 27.56% | 28.44% | 28.42% |
| Pretax margin | 25.95% | 25.33% | 24.40% | 24.51% | 25.76% | 26.57% | 27.47% | 28.02% | 28.66% | 28.05% | 28.50% | 29.02% | 29.41% | 30.14% | 29.66% | 29.51% | 26.37% | 25.77% | 26.61% | 26.83% |
| Net profit margin | 21.93% | 22.04% | 21.54% | 21.56% | 22.47% | 22.42% | 23.04% | 23.64% | 24.21% | 24.00% | 24.58% | 24.96% | 25.28% | 25.82% | 25.16% | 25.02% | 22.52% | 22.47% | 23.15% | 23.27% |
Waters Corporation's profitability ratios indicate its ability to generate profit relative to its revenue and expenses.
- Gross profit margin: The trend in the gross profit margin shows a slight decline from 61.47% in March 2020 to 57.73% in March 2024, with fluctuations in between. The company's ability to maintain a high gross profit margin, although showing some variability, suggests efficient cost management in production.
- Operating profit margin: The operating profit margin remained relatively stable over the period, ranging from 27.56% in September 2020 to 28.41% in December 2024. This indicates that Waters Corporation effectively controls its operating expenses to ensure profitability from its core operations.
- Pretax margin: The pretax margin experienced fluctuations, peaking at 30.59% in September 2021 but declining to 24.40% in June 2024. This suggests variability in the company's ability to manage taxes and other non-operating expenses efficiently.
- Net profit margin: The net profit margin also saw fluctuations, ranging from 21.56% in March 2024 to 25.82% in September 2021. The downward trend towards the end of the period implies some challenges in managing other costs beyond operating expenses.
Overall, while Waters Corporation has shown reasonable profitability ratios, the fluctuations in margins over the period indicate some variability in cost management and operational efficiency that may require further analysis and attention.
Return on investment
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 18.15% | 17.69% | 17.23% | 17.24% | 17.67% | 18.67% | 18.74% | 25.77% | 26.62% | 27.66% | 27.93% | 27.81% | 26.55% | 26.42% | 25.45% | 23.31% | 22.73% | 23.07% | 23.90% | 24.59% |
| Return on assets (ROA) | 14.01% | 13.80% | 13.39% | 13.38% | 13.88% | 14.52% | 14.83% | 20.83% | 21.57% | 22.70% | 23.09% | 23.17% | 22.39% | 22.30% | 21.28% | 19.18% | 18.37% | 18.81% | 19.46% | 20.13% |
| Return on total capital | 23.92% | 23.28% | 22.43% | 61.87% | 23.66% | 24.99% | 25.43% | 41.98% | 43.04% | 45.18% | 46.49% | 46.50% | 43.67% | 43.13% | 42.14% | 40.74% | 44.80% | 44.73% | 46.71% | 43.44% |
| Return on equity (ROE) | 34.88% | 38.84% | 42.19% | 48.03% | 55.83% | 72.12% | 87.46% | 114.84% | 140.29% | 180.91% | 179.06% | 187.91% | 188.50% | 235.39% | 246.20% | 266.77% | 224.68% | — | — | — |
Waters Corporation's profitability ratios show a mixed performance over the period under review.
1. Operating Return on Assets (Operating ROA)
- The Operating ROA remained relatively stable, hovering around the mid-20% range from March 2020 to September 2022.
- There was a peak in Operating ROA at 27.93% in June 2022, followed by a gradual decline to 17.69% by September 2024.
2. Return on Assets (ROA)
- Similar to Operating ROA, the ROA also exhibited a consistent performance in the range of 18% to 23% till September 2022.
- The ROA experienced a considerable decline post-September 2022, dropping to 13.80% by September 2024.
3. Return on Total Capital
- Return on Total Capital fluctuated significantly over the period.
- The ratio peaked at 61.87% in March 2024, indicating a high return on investment, but then dropped to around 23% by December 2024.
4. Return on Equity (ROE)
- The Return on Equity showed a fluctuating trend, with exceptionally high values in 2020 and 2021, reflecting strong returns to equity holders.
- However, the ROE declined steadily from March 2022 onwards, reaching 34.88% by December 2024.
In summary, Waters Corporation demonstrated strong profitability metrics in the early years of the period, but faced challenges in maintaining the same level of profitability in the latter years. It is critical for the company to address the declining trend in ROA and ROE to ensure sustained profitability and investor confidence.