Analysis of Profitability Ratios
Quarterly Data
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
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Liquidity Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Current Ratio since 2005
- Debt to Equity since 2005
- Aggregate Accruals
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Profitability Ratios (Summary)
Builders FirstSource Inc., profitability ratios (quarterly data)
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
- Gross Profit Margin
- The gross profit margin shows a consistent upward trend from the first recorded quarter onwards. Beginning around 24.89%, it gradually increased to approximately 34.86% by the last quarter, indicating an improvement in the company's efficiency in managing production and sales costs over time. This steady rise suggests effective cost control or enhanced pricing power.
- Operating Profit Margin
- The operating profit margin also experienced growth following the initial period. Starting near 4.78%, it ascended steadily, peaking around 16.81% in mid-2023 before showing a slight decline to about 12.78%. The overall pattern indicates strengthening operational efficiency and improved control over operating expenses, though recent quarters show a minor easing of this trend.
- Net Profit Margin
- The net profit margin followed a similar trajectory to the operating margin, rising from approximately 2.66% initially to a high of 12.20%, then tapering slightly to around 9.10% toward the end of the period. The improvement reflects better profitability after accounting for all expenses, taxes, and costs, while the recent dip may signal rising non-operating costs or tax impacts.
- Return on Equity (ROE)
- Return on equity exhibited notable variability throughout the period. It started quite high, exceeding 34%, then declined steadily to around 9.58% in early 2021. After this trough, ROE rebounded strongly, reaching over 55% in late 2022 before descending to roughly 34% in the most recent quarter. This fluctuation suggests changes in net income relative to shareholder equity, potentially driven by shifts in leverage, profitability, or equity base.
- Return on Assets (ROA)
- The return on assets demonstrated a moderate increase from around 7.0% to a peak of nearly 26% before retreating to about 14.66% in the latest term. The rise indicates improved efficiency in utilizing company assets to generate earnings, while the recent reduction may reflect asset growth outpacing net income gains or decreased asset utilization efficiency.
Return on Sales
Return on Investment
Gross Profit Margin
Builders FirstSource Inc., gross profit margin calculation (quarterly data)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Gross margin | ||||||||||||||||||||||||||||||
| Net sales | ||||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||
| Gross profit margin1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | ||||||||||||||||||||||||||||||
| Boeing Co. | ||||||||||||||||||||||||||||||
| Caterpillar Inc. | ||||||||||||||||||||||||||||||
| Eaton Corp. plc | ||||||||||||||||||||||||||||||
| GE Aerospace | ||||||||||||||||||||||||||||||
| Honeywell International Inc. | ||||||||||||||||||||||||||||||
| Lockheed Martin Corp. | ||||||||||||||||||||||||||||||
| RTX Corp. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q3 2023 Calculation
Gross profit margin = 100
× (Gross marginQ3 2023
+ Gross marginQ2 2023
+ Gross marginQ1 2023
+ Gross marginQ4 2022)
÷ (Net salesQ3 2023
+ Net salesQ2 2023
+ Net salesQ1 2023
+ Net salesQ4 2022)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
- Gross Margin
- The gross margin shows a broadly increasing trend over the entire period, rising significantly from the early years into the later quarters. In 2018, the gross margin figures generally ranged between approximately 411 million to 523 million USD. Moving into 2019 and 2020, the margins fluctuated but trended upward, reaching over 669 million USD by the end of 2020. A notable surge is evident in 2021, with values exceeding one billion and peaking at over 1.7 billion USD. The upward momentum continues into early 2022, with gross margin surpassing 2.4 billion USD in June 2022. However, a decline follows in the remaining part of 2022 and early 2023, with margins falling closer to the 1.4 billion to 1.6 billion USD range. Overall, despite some volatility, the gross margin displays substantial growth over the examined quarters.
- Net Sales
- Net sales initially demonstrate growth from 2018 through 2019, increasing from roughly 1.7 billion USD to nearly 2 billion USD per quarter. In 2020, sales continue to climb, reaching above 2.5 billion USD by the end of the year. A pronounced acceleration is visible in 2021, where sales rise dramatically to over 5.5 billion USD in the middle of the year, maintaining high levels near 5.5 billion USD to 5.7 billion USD through the end of 2021 and into the first quarter of 2022. The peak occurs mid-2022 with net sales exceeding 6.9 billion USD. However, subsequent periods exhibit a marked contraction, with net sales decreasing to approximately 3.9 billion to 4.5 billion USD per quarter in 2023. The data suggest substantial expansion through 2021 and mid-2022 followed by a notable downturn in sales volume thereafter.
- Gross Profit Margin (%)
- The gross profit margin percentage data begins from late 2018, with values starting at about 24.89%. A generally positive trajectory is observable, with margins increasing steadily each quarter. By the end of 2019, the margin rises slightly above 27%. Progressing through 2020, the percentage ranges between approximately 25.8% and 26.9%, showing moderate stability. In 2021, the margin increases more markedly, reaching around 28.3% to 29.4%. The upward trend continues in 2022, with margins approaching 33.7% to 34.0%, culminating near 34.9% by late 2022 and early 2023. This continuous improvement in gross profit margin percentage indicates enhanced profitability relative to net sales over time, despite fluctuations in absolute sales and gross margin dollar amounts.
Operating Profit Margin
Builders FirstSource Inc., operating profit margin calculation (quarterly data)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Income from operations | ||||||||||||||||||||||||||||||
| Net sales | ||||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||
| Operating profit margin1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | ||||||||||||||||||||||||||||||
| Boeing Co. | ||||||||||||||||||||||||||||||
| Caterpillar Inc. | ||||||||||||||||||||||||||||||
| Eaton Corp. plc | ||||||||||||||||||||||||||||||
| GE Aerospace | ||||||||||||||||||||||||||||||
| Honeywell International Inc. | ||||||||||||||||||||||||||||||
| Lockheed Martin Corp. | ||||||||||||||||||||||||||||||
| RTX Corp. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q3 2023 Calculation
Operating profit margin = 100
× (Income from operationsQ3 2023
+ Income from operationsQ2 2023
+ Income from operationsQ1 2023
+ Income from operationsQ4 2022)
÷ (Net salesQ3 2023
+ Net salesQ2 2023
+ Net salesQ1 2023
+ Net salesQ4 2022)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The financial data over the observed periods reveals several notable trends in operational performance and sales.
- Income from operations
- The income from operations displayed significant fluctuations across the quarters. From March 2018 to December 2019, it exhibited moderate variability, reaching a peak in September 2019 before declining noticeably in December 2019. Starting from March 2020, there is a general upward trend with occasional dips. The most remarkable increases occurred between June 2020 and June 2021, followed by a substantial peak in June 2022. However, after this peak, income from operations declined sharply through March 2023 but saw a slight recovery in the following two quarters.
- Net sales
- Net sales showed a pattern of steady growth with some interruptions. From early 2018 to late 2019, there was consistent growth with seasonal fluctuations. The net sales surged notably in 2021, reaching a maximum in June 2021, before sharply dropping in the subsequent quarters of 2021 and early 2022. Another strong upswing occurred from mid-2022 through the end of 2022, with net sales peaking around September 2022. Starting in the first quarter of 2023, net sales declined again but remained above levels seen in the earlier part of the timeline.
- Operating profit margin
- The operating profit margin data, available from December 2018 onwards, illustrates a clear upward trajectory. Initially, margins hovered around the mid-4% to mid-5% range. Thereafter, a consistent improvement is observed, with margins reaching double digits from the second half of 2021. The margin peaked at 16.81% in September 2022 before slightly declining to around 12.78% by September 2023. This upward trend in margins suggests improved efficiency and profitability over time despite revenue fluctuations.
Overall, the analysis indicates that while sales and operating income have experienced periods of volatility, operating efficiency as measured by the profit margin has improved substantially. Peaks in net sales have coincided with increases in operating income and profit margins, reflecting periods of strong financial performance. Recent quarters show some contraction in revenues and operating income, though profitability margins remain significantly higher than earlier periods.
Net Profit Margin
Builders FirstSource Inc., net profit margin calculation (quarterly data)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Net income | ||||||||||||||||||||||||||||||
| Net sales | ||||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||
| Net profit margin1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Net Profit Margin, Competitors2 | ||||||||||||||||||||||||||||||
| Boeing Co. | ||||||||||||||||||||||||||||||
| Caterpillar Inc. | ||||||||||||||||||||||||||||||
| Eaton Corp. plc | ||||||||||||||||||||||||||||||
| GE Aerospace | ||||||||||||||||||||||||||||||
| Honeywell International Inc. | ||||||||||||||||||||||||||||||
| Lockheed Martin Corp. | ||||||||||||||||||||||||||||||
| RTX Corp. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q3 2023 Calculation
Net profit margin = 100
× (Net incomeQ3 2023
+ Net incomeQ2 2023
+ Net incomeQ1 2023
+ Net incomeQ4 2022)
÷ (Net salesQ3 2023
+ Net salesQ2 2023
+ Net salesQ1 2023
+ Net salesQ4 2022)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals distinct trends in net income, net sales, and net profit margin over the observed periods.
- Net Income
- Net income shows a general upward trajectory with some fluctuations. From initial figures in early 2018, it increased significantly through 2021, reaching a peak in the second and third quarters of 2021. Despite a decrease afterwards, net income remained at historically high levels relative to the beginning of the period. The values suggest cyclical performance patterns, with quarters in 2020 and 2023 showing more moderate income figures compared to the peaks observed in 2021 and 2022.
- Net Sales
- Net sales demonstrate notable growth over the examined quarters. There was a moderate increase from 2018 through 2020, followed by a substantial jump from late 2020 into 2021, with peak sales occurring in the second quarter of 2021. Afterward, sales experienced volatility with sharp declines observed in early 2023. The trend indicates a phase of rapid expansion around 2021, succeeded by a period of normalization and some softness in sales volumes.
- Net Profit Margin
- The net profit margin was not reported in the earlier quarters but begins at approximately 2.66% in late 2018. From that point, it steadily improved, reaching a high of around 12.2% in early 2023 before displaying a slight decrease toward the third quarter of 2023. This steady improvement in profitability margins reflects enhanced operational efficiency or favorable market conditions contributing to higher profitability relative to sales over time.
Overall, the data indicates a period of strong growth in both sales and net income, alongside improving profitability margins through 2021 and 2022. While some declines in sales and net income appear in 2023, profit margins remain relatively healthy, suggesting operational resilience despite sales volatility. These patterns may imply cyclical market influences or strategic adjustments within the company's operations.
Return on Equity (ROE)
Builders FirstSource Inc., ROE calculation (quarterly data)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Net income | ||||||||||||||||||||||||||||||
| Stockholders’ equity | ||||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||
| ROE1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| ROE, Competitors2 | ||||||||||||||||||||||||||||||
| Boeing Co. | ||||||||||||||||||||||||||||||
| Caterpillar Inc. | ||||||||||||||||||||||||||||||
| Eaton Corp. plc | ||||||||||||||||||||||||||||||
| GE Aerospace | ||||||||||||||||||||||||||||||
| Honeywell International Inc. | ||||||||||||||||||||||||||||||
| Lockheed Martin Corp. | ||||||||||||||||||||||||||||||
| RTX Corp. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q3 2023 Calculation
ROE = 100
× (Net incomeQ3 2023
+ Net incomeQ2 2023
+ Net incomeQ1 2023
+ Net incomeQ4 2022)
÷ Stockholders’ equity
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The financial data reveals several notable trends and fluctuations in the net income, stockholders' equity, and return on equity (ROE) over the examined periods.
- Net Income
- Net income demonstrates substantial variability across quarters. Initially, it shows growth, peaking around late 2018 and early 2019, followed by a steep decline in early 2020. After this dip, net income recovers strongly by the end of 2020 and experiences significant increases throughout 2021, reaching a peak in the third quarter of 2021. However, starting from the first quarter of 2022, net income exhibits a volatile downward trend, with values dropping markedly in some quarters, though remaining positive overall. The latter part of 2023 shows a moderate recovery in net income.
- Stockholders' Equity
- Stockholders' equity shows a generally increasing trend from 2018 through the end of 2021, reaching its highest point in the third quarter of 2021. This upward trajectory suggests growth in the company’s net assets over this period. Beginning in 2022, stockholders' equity declines gradually and continues to trend downward into 2023, indicating a reduction in the equity base during these quarters.
- Return on Equity (ROE)
- ROE data starts to appear from the first quarter of 2019, showing a declining trend in 2019 and 2020, falling from above 34% to near 21%. In 2021, ROE recovers and fluctuates between roughly 9.6% and 27%, before reaching significant highs in 2022, with values exceeding 50% and peaking around 55%. However, ROE begins to decline sharply towards the end of 2022 and through 2023 but remains relatively elevated compared to early years.
Overall, the company experienced strong growth in net income and equity until late 2021, after which both metrics faced pressures leading to declines. Despite these challenges, ROE at times reached high levels, reflecting efficient utilization of equity during peak income periods. The volatility in net income and equity in the most recent periods suggests changing operational or market conditions impacting financial performance.
Return on Assets (ROA)
Builders FirstSource Inc., ROA calculation (quarterly data)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Net income | ||||||||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||
| ROA1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| ROA, Competitors2 | ||||||||||||||||||||||||||||||
| Boeing Co. | ||||||||||||||||||||||||||||||
| Caterpillar Inc. | ||||||||||||||||||||||||||||||
| Eaton Corp. plc | ||||||||||||||||||||||||||||||
| GE Aerospace | ||||||||||||||||||||||||||||||
| Honeywell International Inc. | ||||||||||||||||||||||||||||||
| Lockheed Martin Corp. | ||||||||||||||||||||||||||||||
| RTX Corp. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q3 2023 Calculation
ROA = 100
× (Net incomeQ3 2023
+ Net incomeQ2 2023
+ Net incomeQ1 2023
+ Net incomeQ4 2022)
÷ Total assets
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several important trends regarding profitability, asset growth, and returns over the assessed time frame.
- Net Income
- Net income shows an overall increasing trajectory from 2018 through part of 2022, with some fluctuations. Starting at approximately $23.2 million in the first quarter of 2018, net income rises substantially, peaking notably in 2021 where it exceeds $600 million in some quarters. Following the peak, a decline is observed in 2023, with values dropping to around $330-$450 million by the third quarter. This pattern indicates significant growth in profitability up to 2021, followed by a contraction phase.
- Total Assets
- Total assets demonstrate steady growth throughout the period, nearly tripling from about $3.1 billion in early 2018 to over $10.7 billion by the third quarter of 2023. This continuous accumulation of assets underscores expansion and possibly acquisitions or investments conducted by the company over the years. The asset base's growth also supports the increase in net income up to the 2021 peak, reflecting enhanced operational capacity or resource base.
- Return on Assets (ROA)
- ROA percentages, available intermittently from 2018 onwards, denote improving efficiency in asset utilization over time. Early ROA figures hover around 6-7%, gradually rising to double digits by mid-2021 and peaking above 25% in late 2022. A decline is evident thereafter, with ROA settling back down to approximately 15% in the third quarter of 2023. The rise in ROA aligns with net income growth and indicates improved profit generation per asset unit during the peak years, while the later decrease reflects challenges in sustaining this efficiency.
- Overall Interpretation
- The financial data illustrate a period of robust growth in both profitability and asset accumulation until 2021-2022, marking a phase of expansion and enhanced operational returns. The subsequent decline in net income and ROA in 2023 suggests external or internal factors impacting earnings quality or asset efficiency negatively. The sustained increase in total assets despite reduced profitability hints at ongoing investments or capital expenditures that may not yet be fully realized in income terms. This pattern merits attention for potential strategic adjustments to restore return metrics.