Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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- Income Statement
- Statement of Comprehensive Income
- Balance Sheet: Assets
- Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Long-term (Investment) Activity Ratios
- Common Stock Valuation Ratios
- Present Value of Free Cash Flow to Equity (FCFE)
- Return on Assets (ROA) since 2005
- Debt to Equity since 2005
- Aggregate Accruals
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Profitability Ratios (Summary)
Amphenol Corp., profitability ratios
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
- Gross Profit Margin
- The gross profit margin exhibited a generally upward trend over the five-year period, increasing from 31.8% in 2019 to 32.53% in 2023. Despite a slight dip in 2020 to 30.98%, the margin progressively recovered and improved each subsequent year, indicating enhanced efficiency in managing production costs relative to revenue.
- Operating Profit Margin
- The operating profit margin showed a mild fluctuation but remained relatively stable throughout the period. Starting at 19.69% in 2019, it experienced a small decline in 2020 to 19.05%, followed by a gradual increase that peaked at 20.48% in 2022. In 2023, there was a marginal decrease to 20.39%, suggesting consistent control of operating expenses and steady profitability from core operations.
- Net Profit Margin
- The net profit margin demonstrated a consistent upward movement from 14.04% in 2019 to 15.36% in 2023. This steady increase reflects improving overall profitability, driven by effective cost management and possibly favorable tax or financing impacts over the years.
- Return on Equity (ROE)
- Return on equity presented some volatility during the period. After a decline from 25.5% in 2019 to 22.35% in 2020, it rebounded significantly to 27.12% in 2022 before falling again to 23.1% in 2023. This variation indicates changes in the company's ability to generate profits from shareholders' equity, which might be influenced by shifts in net income, equity levels, or both.
- Return on Assets (ROA)
- The return on assets followed a positive trajectory overall, rising from 10.68% in 2019 to a peak of 12.41% in 2022. There was a slight retreat to 11.67% in 2023, yet the level remains higher than in earlier years. This suggests improvement in asset utilization efficiency to generate profits, although the marginal decrease in the final year may warrant monitoring.
Return on Sales
Return on Investment
Gross Profit Margin
Amphenol Corp., gross profit margin calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Gross profit | ||||||
| Net sales | ||||||
| Profitability Ratio | ||||||
| Gross profit margin1 | ||||||
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Apple Inc. | ||||||
| Arista Networks Inc. | ||||||
| Cisco Systems Inc. | ||||||
| Dell Technologies Inc. | ||||||
| Super Micro Computer Inc. | ||||||
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Gross profit margin = 100 × Gross profit ÷ Net sales
= 100 × ÷ =
2 Click competitor name to see calculations.
The annual financial data reveals several key trends in the company's sales and profitability metrics over the five-year period.
- Net Sales
- Net sales exhibited a consistent upward trajectory from 2019 through 2022, increasing from approximately 8.23 billion US dollars in 2019 to 12.62 billion US dollars in 2022. However, there was a slight decline in 2023, with net sales decreasing marginally to about 12.55 billion US dollars. This indicates a strong growth phase followed by a minor setback or stabilization in the latest year.
- Gross Profit
- Gross profit showed a steady increase over the entire period, rising from around 2.62 billion US dollars in 2019 to over 4.08 billion US dollars in 2023. Notably, the growth in gross profit accelerated particularly between 2020 and 2022, which corresponds to a period of rising net sales.
- Gross Profit Margin
- The gross profit margin percentage remained relatively stable but demonstrated a subtle improving trend over the five years. Starting at 31.8% in 2019, it experienced a slight dip to 30.98% in 2020, followed by a gradual recovery and progressive increase to 32.53% by the end of 2023. This suggests an enhancement in cost efficiency or pricing power over time.
Overall, the data indicates robust growth in net sales and gross profit, with a slight moderation in sales growth in the most recent year. The improvement in gross profit margin highlights better profitability management. These trends collectively reflect a solid financial performance with positive momentum in profit generation.
Operating Profit Margin
Amphenol Corp., operating profit margin calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Operating income | ||||||
| Net sales | ||||||
| Profitability Ratio | ||||||
| Operating profit margin1 | ||||||
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Apple Inc. | ||||||
| Arista Networks Inc. | ||||||
| Cisco Systems Inc. | ||||||
| Dell Technologies Inc. | ||||||
| Super Micro Computer Inc. | ||||||
| Operating Profit Margin, Sector | ||||||
| Technology Hardware & Equipment | ||||||
| Operating Profit Margin, Industry | ||||||
| Information Technology | ||||||
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Operating profit margin = 100 × Operating income ÷ Net sales
= 100 × ÷ =
2 Click competitor name to see calculations.
- Net sales
- Net sales demonstrate a consistent upward trend from 2019 to 2022, increasing from approximately $8.23 billion to $12.62 billion. However, in 2023, net sales slightly declined to about $12.55 billion, indicating a minor contraction after several years of growth.
- Operating income
- Operating income follows a similar pattern to net sales, showing growth from $1.62 billion in 2019 to a peak of $2.59 billion in 2022. In 2023, there is a slight decrease to $2.56 billion, marking a plateau after continuous increases over four years.
- Operating profit margin
- The operating profit margin remains relatively stable throughout the periods, fluctuating between 19.05% and 20.48%. After a slight dip in 2020 to 19.05%, it recovers and peaks at 20.48% in 2022, before slightly decreasing to 20.39% in 2023. This suggests effective cost control and consistent profitability relative to sales despite the fluctuations in absolute income and sales figures.
Net Profit Margin
Amphenol Corp., net profit margin calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income attributable to Amphenol Corporation | ||||||
| Net sales | ||||||
| Profitability Ratio | ||||||
| Net profit margin1 | ||||||
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Apple Inc. | ||||||
| Arista Networks Inc. | ||||||
| Cisco Systems Inc. | ||||||
| Dell Technologies Inc. | ||||||
| Super Micro Computer Inc. | ||||||
| Net Profit Margin, Sector | ||||||
| Technology Hardware & Equipment | ||||||
| Net Profit Margin, Industry | ||||||
| Information Technology | ||||||
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Net profit margin = 100 × Net income attributable to Amphenol Corporation ÷ Net sales
= 100 × ÷ =
2 Click competitor name to see calculations.
- Net Income Attributable to Amphenol Corporation
- The net income shows a consistent upward trend over the five-year period. Starting at $1,155,000 thousand in 2019, it increased each year, reaching $1,928,000 thousand by 2023. The most significant growth occurred between 2020 and 2021, where net income rose by approximately 32%, and the upward momentum continued steadily through 2022 and 2023, although the growth rate slowed slightly in the last year.
- Net Sales
- Net sales also exhibited a continuous increase from 2019 to 2022, growing from $8,225,400 thousand to $12,623,000 thousand. However, in 2023, net sales experienced a slight decline, dropping to $12,554,700 thousand after several years of growth. This suggests a moderation or stabilization in revenue after strong expansion through 2022.
- Net Profit Margin
- The net profit margin remained relatively stable, with a modest upward trend over the five years. Starting at 14.04% in 2019, it dipped slightly to 13.99% in 2020, but then improved consistently to reach 15.36% in 2023. This indicates an enhancement in profitability efficiency, with the company generating slightly higher profits relative to sales over time.
- Summary
- Overall, the financial data indicates sustained growth in profitability, supported by increasing net income and improving profit margins, despite the slight decline in net sales in the most recent year. The steady rise in net income coupled with a stable and growing net profit margin suggests effective cost management and operational efficiency. The decline in net sales in 2023 may warrant attention, but it has not yet adversely affected the company’s profitability levels.
Return on Equity (ROE)
Amphenol Corp., ROE calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income attributable to Amphenol Corporation | ||||||
| Stockholders’ equity attributable to Amphenol Corporation | ||||||
| Profitability Ratio | ||||||
| ROE1 | ||||||
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Apple Inc. | ||||||
| Arista Networks Inc. | ||||||
| Cisco Systems Inc. | ||||||
| Dell Technologies Inc. | ||||||
| Super Micro Computer Inc. | ||||||
| ROE, Sector | ||||||
| Technology Hardware & Equipment | ||||||
| ROE, Industry | ||||||
| Information Technology | ||||||
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
ROE = 100 × Net income attributable to Amphenol Corporation ÷ Stockholders’ equity attributable to Amphenol Corporation
= 100 × ÷ =
2 Click competitor name to see calculations.
- Net Income Attributable to Amphenol Corporation
- The net income exhibited a generally upward trend over the five-year period. Starting from 1,155,000 thousand US dollars in 2019, it increased moderately to 1,203,400 thousand in 2020. There was a more pronounced growth in 2021, with net income rising to 1,590,800 thousand US dollars. This upward momentum continued into 2022, reaching 1,902,300 thousand US dollars, followed by a slight increase to 1,928,000 thousand US dollars in 2023. This indicates consistent profitability improvement with a deceleration in growth pace in the latest year.
- Stockholders’ Equity Attributable to Amphenol Corporation
- Stockholders’ equity demonstrated a strong and steady increase throughout the period. Equity rose from 4,530,300 thousand US dollars in 2019 to 5,384,900 thousand in 2020, continuing its ascent to 6,302,000 thousand in 2021. This positive trajectory persisted, with equity increasing to 7,015,600 thousand in 2022 and further to 8,346,500 thousand US dollars in 2023. This consistent growth suggests ongoing value creation for shareholders, supported potentially by retained earnings and other equity-building factors.
- Return on Equity (ROE)
- The ROE metric showed some variability over the years. It started at a high level of 25.5% in 2019, then decreased to 22.35% in 2020. A recovery phase is visible in 2021 and 2022 with ROE climbing back to 25.24% and then to 27.12%, respectively. However, in 2023, ROE declined notably to 23.1%. While the company maintained strong profitability relative to equity, the fluctuations indicate varying efficiency in generating profits from shareholders’ funds, with a notable peak in 2022 followed by a reduction the subsequent year.
Return on Assets (ROA)
Amphenol Corp., ROA calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income attributable to Amphenol Corporation | ||||||
| Total assets | ||||||
| Profitability Ratio | ||||||
| ROA1 | ||||||
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Apple Inc. | ||||||
| Arista Networks Inc. | ||||||
| Cisco Systems Inc. | ||||||
| Dell Technologies Inc. | ||||||
| Super Micro Computer Inc. | ||||||
| ROA, Sector | ||||||
| Technology Hardware & Equipment | ||||||
| ROA, Industry | ||||||
| Information Technology | ||||||
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
ROA = 100 × Net income attributable to Amphenol Corporation ÷ Total assets
= 100 × ÷ =
2 Click competitor name to see calculations.
- Net Income Attributable to Amphenol Corporation
- The net income of the company has shown a consistent upward trend over the five-year period. Starting from approximately 1.155 billion USD in 2019, it increased steadily each year, reaching about 1.928 billion USD by 2023. The most notable jumps occurred between 2020 and 2021, and then from 2021 to 2022, indicating robust profitability growth during these intervals. The increase from 2022 to 2023, while positive, was more moderate, suggesting a potential stabilization in earnings growth.
- Total Assets
- Total assets have also grown steadily over the same period. From roughly 10.8 billion USD in 2019, assets increased to 16.5 billion USD by the end of 2023. This represents significant expansion, with the largest increments occurring between 2020 and 2021, and between 2022 and 2023. The consistent asset growth aligns with the increases observed in net income, possibly reflecting strategic investments or acquisitions contributing to the company’s scale and capacity.
- Return on Assets (ROA)
- The ROA values fluctuate but reflect generally strong and improving efficiency in utilizing assets to generate income. Starting at 10.68% in 2019, ROA dipped slightly to 9.76% in 2020 but then rose to peak at 12.41% in 2022 before a slight decline to 11.67% in 2023. This pattern suggests that asset utilization became more effective over time, particularly in 2021 and 2022, before experiencing a minor reduction in efficiency though still maintaining a high level relative to the earlier years.
- Overall Analysis
- The company demonstrates a positive trajectory in profitability and asset expansion from 2019 through 2023. The increasing net income alongside growing asset base indicates healthy operational growth supported by effective asset management. While ROA experienced some variation, it remained at robust levels throughout, implying that the company efficiently converted its assets into profits. The moderation in growth rate of net income and slight dip in ROA in the latest year may warrant monitoring to ensure continued operational effectiveness and sustainable financial performance.