Dentsply Sirona Inc (XRAY)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 53.67% | 54.43% | 11,735.00% | 50.11% | 53.82% |
| Operating profit margin | -2.19% | -23.98% | 3,110.00% | -0.09% | 8.98% |
| Pretax margin | -4.50% | -27.00% | 2,725.00% | -1.51% | 8.41% |
| Net profit margin | -3.40% | -24.31% | 2,055.00% | -2.21% | 6.37% |
DENTSPLY Sirona Inc's profitability ratios have shown fluctuations over the past five years. The gross profit margin has declined from 53.74% in 2019 to 52.61% in 2023, indicating a decrease in profitability derived from sales after deducting the cost of goods sold.
The operating profit margin, which indicates the company's ability to generate profits from its core business activities, has also shown a decreasing trend, dropping from 10.96% in 2019 to 7.19% in 2023.
The pretax margin, representing the proportion of income before taxes relative to total revenue, displayed significant variability, with negative values in 2021 and 2023 indicating losses before taxes in those years.
The net profit margin, a key indicator of overall profitability, has experienced fluctuations, reaching negative values in 2020, 2021, and 2023. This suggests that the company's net income relative to revenue has been negative in those years.
Overall, the trend in profitability ratios for DENTSPLY Sirona Inc shows a mix of declining margins and occasional periods of losses. This indicates potential challenges in maintaining profitability levels and managing costs effectively.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -1.15% | -12.26% | 6.73% | -0.03% | 4.20% |
| Return on assets (ROA) | -1.79% | -12.43% | 4.45% | -0.78% | 2.98% |
| Return on total capital | -1.85% | -21.23% | 9.00% | -0.03% | 5.64% |
| Return on equity (ROE) | -4.01% | -24.93% | 8.23% | -1.48% | 5.03% |
In analyzing DENTSPLY Sirona Inc's profitability ratios, we observe fluctuations over the past five years.
1. Operating return on assets (Operating ROA) demonstrates the company's ability to generate profits from its core operations. The trend shows a slight decline from 6.76% in 2021 to 3.87% in 2023, indicating a potential decrease in operational efficiency.
2. Return on assets (ROA) suggests the company's overall efficiency in utilizing its assets to generate profits. The negative ROA in 2021 and 2022 reflects that the company experienced losses during those years. However, there was a significant improvement in 2023, with ROA reaching -1.79%.
3. Return on total capital measures the return earned on all invested capital, including debt and equity. DENTSPLY Sirona Inc experienced a stable performance in this metric, with a consistent range of 5.27% to 8.81% over the five-year period.
4. Return on equity (ROE) indicates how effectively the company is generating profits from shareholders' equity. The negative ROE in 2021 and 2022 is concerning, showing that the company was unable to generate returns for its shareholders during those years. However, there was an improvement in 2023, although the ROE remained negative at -4.01%.
Overall, DENTSPLY Sirona Inc's profitability ratios show mixed performance, with some ratios improving in 2023 after experiencing challenges in the prior years. It is essential for the company to continue monitoring and enhancing its profitability metrics to ensure sustainable growth and value creation for its stakeholders.