Dentsply Sirona Inc (XRAY)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 51.62% | 52.61% | 54.23% | 55.54% | 49.58% |
| Operating profit margin | -23.17% | -2.14% | 7.80% | 14.63% | 13.64% |
| Pretax margin | -24.68% | -4.41% | -26.90% | 13.15% | -1.80% |
| Net profit margin | -23.99% | -3.33% | -24.22% | 9.67% | -2.48% |
The Gross Profit Margin for Dentsply Sirona Inc has shown a positive trend over the years, increasing from 49.58% in December 2020 to 55.54% in December 2021, before slightly decreasing to 54.23% in December 2022 and further to 52.61% in December 2023, and 51.62% in December 2024. This indicates the company's ability to efficiently manage production costs and pricing strategies to generate profit on sales.
However, the Operating Profit Margin has been more volatile, starting at 13.64% in December 2020 and increasing to 14.63% in December 2021. Subsequently, it dropped to 7.80% in December 2022, further declining to -2.14% in December 2023, and significantly to -23.17% in December 2024. This indicates a downward trend in the company's ability to control operating expenses relative to revenue, resulting in lower profitability at the operating level.
The Pretax Margin also fluctuated significantly, with a negative margin of -1.80% in December 2020, a substantial improvement to 13.15% in December 2021, but then sharply declining to -26.90% in December 2022. The margin improved slightly to -4.41% in December 2023, before dropping again to -24.68% in December 2024. This indicates inconsistencies in the company's ability to manage costs and expenses before accounting for taxes.
Moreover, the Net Profit Margin experienced similar variations, starting with a negative margin of -2.48% in December 2020, improving to 9.67% in December 2021, but then deteriorating significantly to -24.22% in December 2022. The margin slightly recovered to -3.33% in December 2023 but worsened again to -23.99% in December 2024. This suggests challenges in the company's ability to generate profits after accounting for all expenses and taxes.
In summary, while Dentsply Sirona Inc has shown strength in managing gross profit margins, there are concerns regarding operating performance, profitability before and after taxes, which require further analysis and possibly corrective actions to enhance overall profitability in the coming years.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -15.28% | -1.15% | 4.00% | 6.75% | 4.88% |
| Return on assets (ROA) | -15.82% | -1.79% | -12.43% | 4.46% | -0.89% |
| Return on total capital | -44.64% | -3.37% | 16.63% | 12.41% | 0.04% |
| Return on equity (ROE) | -46.86% | -4.01% | -24.92% | 8.15% | -1.67% |
Based on the provided data for Dentsply Sirona Inc, the profitability ratios exhibit varying trends over the years:
1. Operating Return on Assets (Operating ROA):
- Dentsply Sirona Inc's Operating ROA shows improvement from 2020 to 2021, indicating the company's ability to generate operating income from its assets.
- However, there is a notable decline in Operating ROA from 2021 to 2022, suggesting potential operational challenges or inefficiencies.
- The sharp decrease in Operating ROA further intensified from 2022 to 2024, reaching negative percentages, raising concerns about the company's profitability derived from its operational activities.
2. Return on Assets (ROA):
- The Return on Assets metric displays a negative value in 2020, indicating that the company's net income generated from its assets was insufficient.
- The ROA showed improvements in 2021 but then deteriorated significantly in the following years, with negative values indicating the inability to generate profits efficiently relative to its assets.
3. Return on Total Capital:
- Dentsply Sirona Inc's Return on Total Capital saw a positive performance in 2021 and 2022, suggesting effective utilization of total capital to generate returns.
- However, the metric turned negative in 2023 and 2024, indicating that the returns earned on total capital were insufficient, potentially reflecting financial challenges or poor capital allocation strategies.
4. Return on Equity (ROE):
- The Return on Equity metric fluctuated over the years, with both positive and negative values observed.
- While there was an improvement in ROE from 2020 to 2021, the metric then demonstrated a decline in subsequent years, reaching negative values by 2024, indicating the company's struggle to generate returns for its shareholders from the equity invested.
Overall, the profitability ratios of Dentsply Sirona Inc reflect a mix of positive and negative trends, suggesting fluctuations in the company's ability to generate profits efficiently, manage operational costs, and effectively utilize its assets and capital resources.