Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
NXP Semiconductors N.V., profitability ratios (quarterly data)
Based on: 10-Q (reporting date: 2022-07-03), 10-Q (reporting date: 2022-04-03), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04).
- Gross Profit Margin
- The gross profit margin demonstrated a consistent upward trend over the observed periods, increasing from 50.15% in April 2021 to 56.28% by July 2022. This steady improvement indicates an enhanced ability to manage production costs relative to revenue, reflecting improved operational efficiency or favorable pricing strategies.
- Operating Profit Margin
- Operating profit margin showed significant expansion, rising from 9.19% to 27% during the same timeframe. The substantial growth suggests increased control over operating expenses and an improvement in core business profitability, underlining a positive operational leverage effect.
- Net Profit Margin
- The net profit margin exhibited a strong positive trend, more than quadrupling from 4.65% to 19.83%. This increase reflects enhanced profitability after all expenses, including taxes and interest, indicating improved cost management and possibly favorable tax or financing conditions.
- Return on Equity (ROE)
- ROE experienced a remarkable rise, moving from a modest 5.13% to a robust 35.16%. This sharp increase indicates that the company has become significantly more effective at generating profits from shareholders’ equity, highlighting management’s success in deploying capital efficiently.
- Return on Assets (ROA)
- ROA also improved steadily from 2.2% to 10.86%, reflecting enhanced ability to generate earnings from the company’s asset base. This suggests better asset utilization and operational efficiency over the evaluated periods.
Return on Sales
Return on Investment
Gross Profit Margin
NXP Semiconductors N.V., gross profit margin calculation (quarterly data)
| Jul 3, 2022 | Apr 3, 2022 | Dec 31, 2021 | Oct 3, 2021 | Jul 4, 2021 | Apr 4, 2021 | ||||
|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||
| Gross profit | 1,882) | 1,777) | 1,707) | 1,583) | 1,422) | 1,355) | |||
| Revenue | 3,312) | 3,136) | 3,039) | 2,861) | 2,596) | 2,567) | |||
| Profitability Ratio | |||||||||
| Gross profit margin1 | 56.28% | 55.79% | 54.84% | 53.63% | 51.88% | 50.15% | |||
| Benchmarks | |||||||||
| Gross Profit Margin, Competitors2 | |||||||||
| Advanced Micro Devices Inc. | 48.01% | 48.53% | 48.25% | 46.82% | 45.71% | 44.79% | |||
| Analog Devices Inc. | 58.33% | 57.81% | 61.83% | 68.04% | 67.36% | 66.37% | |||
| Applied Materials Inc. | 47.51% | 47.67% | 47.32% | 46.69% | 45.83% | 44.96% | |||
| Broadcom Inc. | 64.42% | 62.95% | 61.36% | 60.18% | 58.98% | 57.54% | |||
| Intel Corp. | 49.85% | 54.32% | 55.45% | 56.27% | 55.59% | 54.62% | |||
| KLA Corp. | 60.77% | 60.27% | 59.93% | 59.38% | 58.80% | 58.43% | |||
| Lam Research Corp. | 46.30% | 46.19% | 46.53% | 46.49% | 46.59% | 46.43% | |||
| Micron Technology Inc. | 45.81% | 41.37% | 37.62% | 33.66% | 30.70% | 31.37% | |||
| NVIDIA Corp. | 63.76% | 62.43% | 62.34% | 62.62% | 62.84% | 63.47% | |||
| Qualcomm Inc. | 58.51% | 58.16% | 57.51% | 59.82% | 59.99% | 60.17% | |||
| Texas Instruments Inc. | 69.26% | 68.68% | 67.47% | 66.36% | 65.46% | 64.70% | |||
Based on: 10-Q (reporting date: 2022-07-03), 10-Q (reporting date: 2022-04-03), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04).
1 Q2 2022 Calculation
Gross profit margin = 100
× (Gross profitQ2 2022
+ Gross profitQ1 2022
+ Gross profitQ4 2021
+ Gross profitQ3 2021)
÷ (RevenueQ2 2022
+ RevenueQ1 2022
+ RevenueQ4 2021
+ RevenueQ3 2021)
= 100 × (1,882 + 1,777 + 1,707 + 1,583)
÷ (3,312 + 3,136 + 3,039 + 2,861)
= 56.28%
2 Click competitor name to see calculations.
- Revenue
- The revenue consistently increased across the six quarters observed. Starting at approximately $2.57 billion in April 2021, revenue grew steadily each quarter, reaching about $3.31 billion by July 2022. This represents a clear upward trend in the company’s sales over the observed period.
- Gross Profit
- Gross profit followed a similar increasing trend, rising from $1.36 billion in April 2021 to $1.88 billion in July 2022. The growth in gross profit outpaced revenue growth slightly, indicating improving cost efficiency or pricing power.
- Gross Profit Margin
- The gross profit margin showed a continuous improvement throughout the quarters. It increased from around 50.15% in April 2021 to 56.28% in July 2022. This steady rise suggests enhanced operational efficiency or a more favorable product mix contributing to higher profitability at the gross margin level.
Operating Profit Margin
NXP Semiconductors N.V., operating profit margin calculation (quarterly data)
| Jul 3, 2022 | Apr 3, 2022 | Dec 31, 2021 | Oct 3, 2021 | Jul 4, 2021 | Apr 4, 2021 | ||||
|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||
| Operating income (loss) | 943) | 873) | 807) | 711) | 573) | 492) | |||
| Revenue | 3,312) | 3,136) | 3,039) | 2,861) | 2,596) | 2,567) | |||
| Profitability Ratio | |||||||||
| Operating profit margin1 | 27.00% | 25.48% | 23.35% | 21.26% | 15.70% | 9.19% | |||
| Benchmarks | |||||||||
| Operating Profit Margin, Competitors2 | |||||||||
| Advanced Micro Devices Inc. | 16.83% | 20.86% | 22.20% | 20.27% | 18.83% | 16.23% | |||
| Analog Devices Inc. | 20.42% | 18.87% | 23.12% | 31.59% | 30.06% | 28.83% | |||
| Applied Materials Inc. | 31.80% | 31.37% | 29.87% | 28.47% | 26.49% | 25.30% | |||
| Broadcom Inc. | 37.37% | 34.35% | 31.03% | 28.16% | 24.83% | 20.81% | |||
| Intel Corp. | 18.88% | 25.87% | 24.62% | 25.93% | 26.00% | 26.17% | |||
| KLA Corp. | 38.90% | 37.26% | 35.97% | 34.43% | 28.42% | 27.28% | |||
| Lam Research Corp. | 31.60% | 31.06% | 30.64% | 29.55% | 28.68% | 28.02% | |||
| Micron Technology Inc. | 31.86% | 27.17% | 22.68% | 17.60% | 15.21% | 15.19% | |||
| NVIDIA Corp. | 33.36% | 28.62% | 27.18% | 27.17% | 27.13% | 29.41% | |||
| Qualcomm Inc. | 32.65% | 30.88% | 29.16% | 31.74% | 30.35% | 29.04% | |||
| Texas Instruments Inc. | 51.52% | 50.55% | 48.84% | 47.02% | 45.19% | 42.73% | |||
Based on: 10-Q (reporting date: 2022-07-03), 10-Q (reporting date: 2022-04-03), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04).
1 Q2 2022 Calculation
Operating profit margin = 100
× (Operating income (loss)Q2 2022
+ Operating income (loss)Q1 2022
+ Operating income (loss)Q4 2021
+ Operating income (loss)Q3 2021)
÷ (RevenueQ2 2022
+ RevenueQ1 2022
+ RevenueQ4 2021
+ RevenueQ3 2021)
= 100 × (943 + 873 + 807 + 711)
÷ (3,312 + 3,136 + 3,039 + 2,861)
= 27.00%
2 Click competitor name to see calculations.
The financial data over the six quarters demonstrates a consistent upward trend in revenue, operating income, and operating profit margin, indicating improving operational efficiency and profitability.
- Revenue
- The revenue figures show steady growth each quarter, rising from US$2,567 million in April 2021 to US$3,312 million by July 2022. This reflects a cumulative increase of approximately 29%, suggesting successful sales expansion or increased market demand throughout the period.
- Operating Income
- Operating income also exhibits continuous improvement, growing from US$492 million in April 2021 to US$943 million by July 2022. This nearly doubles the operating income over the span of six quarters, demonstrating enhanced earnings generation capability from core operations.
- Operating Profit Margin
- The operating profit margin advances markedly from 9.19% to 27% during the observed periods. This rising margin suggests effective cost control, economies of scale, or higher-value product mix, contributing to more profitable operations relative to revenue.
In summary, the data indicates a robust financial performance trajectory with growing top-line revenues and even stronger growth in operating profits and margins. The consistent positive trends reflect operational improvements and strengthened profitability.
Net Profit Margin
NXP Semiconductors N.V., net profit margin calculation (quarterly data)
| Jul 3, 2022 | Apr 3, 2022 | Dec 31, 2021 | Oct 3, 2021 | Jul 4, 2021 | Apr 4, 2021 | ||||
|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||
| Net income (loss) attributable to stockholders | 670) | 657) | 602) | 519) | 397) | 353) | |||
| Revenue | 3,312) | 3,136) | 3,039) | 2,861) | 2,596) | 2,567) | |||
| Profitability Ratio | |||||||||
| Net profit margin1 | 19.83% | 18.70% | 16.91% | 14.98% | 10.44% | 4.65% | |||
| Benchmarks | |||||||||
| Net Profit Margin, Competitors2 | |||||||||
| Advanced Micro Devices Inc. | 14.51% | 17.98% | 19.24% | 26.72% | 25.76% | 25.24% | |||
| Analog Devices Inc. | 16.84% | 15.18% | 19.00% | 26.15% | 25.16% | 23.99% | |||
| Applied Materials Inc. | 27.20% | 27.10% | 25.53% | 24.54% | 22.35% | 21.19% | |||
| Broadcom Inc. | 29.76% | 27.47% | 24.54% | 22.90% | 19.11% | 16.01% | |||
| Intel Corp. | 26.03% | 31.68% | 25.14% | 26.89% | 23.91% | 23.93% | |||
| KLA Corp. | 36.57% | 36.52% | 30.04% | 28.77% | 22.52% | 21.76% | |||
| Lam Research Corp. | 27.78% | 27.07% | 26.72% | 26.07% | 24.85% | 23.60% | |||
| Micron Technology Inc. | 28.95% | 24.86% | 21.16% | 16.20% | 13.60% | 13.59% | |||
| NVIDIA Corp. | 32.33% | 27.66% | 25.98% | 25.89% | 25.94% | 28.18% | |||
| Qualcomm Inc. | 28.42% | 27.71% | 26.94% | 28.25% | 27.28% | 25.21% | |||
| Texas Instruments Inc. | 43.78% | 43.34% | 42.35% | 41.61% | 40.12% | 40.04% | |||
Based on: 10-Q (reporting date: 2022-07-03), 10-Q (reporting date: 2022-04-03), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04).
1 Q2 2022 Calculation
Net profit margin = 100
× (Net income (loss) attributable to stockholdersQ2 2022
+ Net income (loss) attributable to stockholdersQ1 2022
+ Net income (loss) attributable to stockholdersQ4 2021
+ Net income (loss) attributable to stockholdersQ3 2021)
÷ (RevenueQ2 2022
+ RevenueQ1 2022
+ RevenueQ4 2021
+ RevenueQ3 2021)
= 100 × (670 + 657 + 602 + 519)
÷ (3,312 + 3,136 + 3,039 + 2,861)
= 19.83%
2 Click competitor name to see calculations.
The analysis of the quarterly financial data indicates a consistent and positive growth trend across key financial metrics over the observed periods.
- Net Income (Loss) Attributable to Stockholders
- The net income has shown steady growth from US$353 million in the earliest quarter to US$670 million in the latest quarter. This reflects a near doubling of net income over the six-quarter span, indicating improved profitability and operational performance.
- Revenue
- Revenue exhibits a progressive increase from US$2,567 million initially to US$3,312 million by the last quarter. This upward trend suggests expanding sales or improved market penetration, supporting the enhanced earnings observed.
- Net Profit Margin
- The net profit margin has improved significantly, starting at 4.65% and rising to 19.83% by the final quarter. This increase indicates enhanced efficiency in managing costs relative to revenue or higher-value product sales, contributing to greater profitability.
In summary, the data demonstrates a positive performance trajectory characterized by growing revenues, increasing net income, and substantial improvements in profitability margins. This reflects effective management strategies and favorable market conditions during the evaluated periods.
Return on Equity (ROE)
NXP Semiconductors N.V., ROE calculation (quarterly data)
| Jul 3, 2022 | Apr 3, 2022 | Dec 31, 2021 | Oct 3, 2021 | Jul 4, 2021 | Apr 4, 2021 | ||||
|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||
| Net income (loss) attributable to stockholders | 670) | 657) | 602) | 519) | 397) | 353) | |||
| Stockholders’ equity | 6,962) | 6,509) | 6,528) | 6,738) | 7,442) | 8,303) | |||
| Profitability Ratio | |||||||||
| ROE1 | 35.16% | 33.42% | 28.66% | 23.42% | 13.93% | 5.13% | |||
| Benchmarks | |||||||||
| ROE, Competitors2 | |||||||||
| Advanced Micro Devices Inc. | 5.67% | 6.13% | 42.18% | 55.62% | 48.63% | 44.51% | |||
| Analog Devices Inc. | 4.43% | 3.43% | 3.66% | 13.87% | 12.83% | 11.63% | |||
| Applied Materials Inc. | 58.35% | 55.09% | 48.08% | 44.00% | 36.95% | 33.62% | |||
| Broadcom Inc. | 42.58% | 34.09% | 26.99% | 24.94% | 20.40% | 16.49% | |||
| Intel Corp. | 18.88% | 23.87% | 20.83% | 23.42% | 21.78% | 23.30% | |||
| KLA Corp. | 73.76% | 70.61% | 61.53% | 59.60% | 46.59% | 46.99% | |||
| Lam Research Corp. | 70.88% | 73.28% | 64.85% | 64.42% | 53.86% | 48.15% | |||
| Micron Technology Inc. | 18.86% | 16.04% | 13.34% | 9.77% | 7.86% | 7.51% | |||
| NVIDIA Corp. | 33.48% | 28.37% | 25.64% | 24.95% | 24.36% | 25.34% | |||
| Qualcomm Inc. | 83.73% | 88.12% | 90.88% | 112.56% | 108.05% | 91.17% | |||
| Texas Instruments Inc. | 60.86% | 58.62% | 58.27% | 60.23% | 60.30% | 60.73% | |||
Based on: 10-Q (reporting date: 2022-07-03), 10-Q (reporting date: 2022-04-03), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04).
1 Q2 2022 Calculation
ROE = 100
× (Net income (loss) attributable to stockholdersQ2 2022
+ Net income (loss) attributable to stockholdersQ1 2022
+ Net income (loss) attributable to stockholdersQ4 2021
+ Net income (loss) attributable to stockholdersQ3 2021)
÷ Stockholders’ equity
= 100 × (670 + 657 + 602 + 519)
÷ 6,962 = 35.16%
2 Click competitor name to see calculations.
The financial data indicates several noteworthy trends regarding profitability, equity position, and returns to shareholders over the observed six quarters.
- Net Income Attributable to Stockholders
- The net income shows a steady upward trajectory, increasing from 353 million US dollars in the first quarter to 670 million US dollars in the last quarter. This reflects a strong improvement in profitability, with the company more than nearly doubling its quarterly net earnings over the period.
- Stockholders’ Equity
- The stockholders’ equity exhibits a declining trend for the first four quarters, moving downward from 8,303 million US dollars to 6,528 million US dollars. However, this trend reverses in the last two quarters, with equity rising slightly to 6,962 million US dollars. The initial decline may suggest distributions, share repurchases, or accumulated losses exceeding gains, but the recent uptick could indicate equity preservation or improvement.
- Return on Equity (ROE)
- The return on equity demonstrates a significant increase throughout the periods analyzed, climbing from 5.13% to 35.16%. This sharp rise correlates with the increasing net income and the temporary reduction in equity, indicating enhanced efficiency and profitability in generating returns for shareholders. The growth in ROE suggests improved management effectiveness or operational leverage.
Overall, the data reflects improved profitability and greater returns on equity despite a decreasing equity base in the first four quarters. This pattern suggests that the company has effectively leveraged its equity to generate higher profits, although the declining equity warrants further examination to understand the underlying causes. The recent stabilization of equity, combined with increasing net income and ROE, signals a potentially stronger financial position moving forward.
Return on Assets (ROA)
NXP Semiconductors N.V., ROA calculation (quarterly data)
| Jul 3, 2022 | Apr 3, 2022 | Dec 31, 2021 | Oct 3, 2021 | Jul 4, 2021 | Apr 4, 2021 | ||||
|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||
| Net income (loss) attributable to stockholders | 670) | 657) | 602) | 519) | 397) | 353) | |||
| Total assets | 22,539) | 21,321) | 20,864) | 20,010) | 20,622) | 19,392) | |||
| Profitability Ratio | |||||||||
| ROA1 | 10.86% | 10.20% | 8.97% | 7.89% | 5.03% | 2.20% | |||
| Benchmarks | |||||||||
| ROA, Competitors2 | |||||||||
| Advanced Micro Devices Inc. | 4.64% | 5.07% | 25.46% | 35.59% | 32.14% | 28.70% | |||
| Analog Devices Inc. | 3.23% | 2.50% | 2.66% | 7.86% | 7.23% | 6.56% | |||
| Applied Materials Inc. | 26.54% | 25.76% | 22.80% | 21.68% | 18.40% | 16.55% | |||
| Broadcom Inc. | 12.45% | 10.69% | 8.91% | 8.00% | 6.47% | 5.14% | |||
| Intel Corp. | 11.21% | 13.96% | 11.80% | 12.56% | 12.00% | 12.35% | |||
| KLA Corp. | 25.57% | 24.46% | 20.23% | 18.68% | 13.93% | 13.85% | |||
| Lam Research Corp. | 27.51% | 27.40% | 24.59% | 22.64% | 19.28% | 17.33% | |||
| Micron Technology Inc. | 14.17% | 12.02% | 9.96% | 7.38% | 5.91% | 5.59% | |||
| NVIDIA Corp. | 18.32% | 17.30% | 15.05% | 14.23% | 13.46% | 14.27% | |||
| Qualcomm Inc. | 25.19% | 23.32% | 21.93% | 23.74% | 21.58% | 17.95% | |||
| Texas Instruments Inc. | 34.69% | 32.51% | 31.48% | 31.45% | 32.64% | 31.44% | |||
Based on: 10-Q (reporting date: 2022-07-03), 10-Q (reporting date: 2022-04-03), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04).
1 Q2 2022 Calculation
ROA = 100
× (Net income (loss) attributable to stockholdersQ2 2022
+ Net income (loss) attributable to stockholdersQ1 2022
+ Net income (loss) attributable to stockholdersQ4 2021
+ Net income (loss) attributable to stockholdersQ3 2021)
÷ Total assets
= 100 × (670 + 657 + 602 + 519)
÷ 22,539 = 10.86%
2 Click competitor name to see calculations.
- Net Income Trend
- Net income attributable to stockholders exhibited a consistent upward trajectory over the six quarters observed. Starting at $353 million in April 2021, it increased steadily each quarter, reaching $670 million by July 2022. This demonstrates a strong and sustained improvement in profitability over the examined period.
- Total Assets Trend
- Total assets fluctuated modestly throughout the quarters but showed an overall gradual increase. Beginning at $19,392 million in April 2021, assets peaked at $22,539 million by July 2022, indicating a moderate yet steady growth in asset base over time.
- Return on Assets (ROA) Trend
- ROA presented a significant and consistent improvement across the quarters. It rose sharply from 2.2% in April 2021 to 10.86% by July 2022. This increase signals enhanced efficiency in utilizing assets to generate profits, reflecting better operational performance and profitability management.
- General Insights
- The overall financial data portrays a positive growth pattern with profitability measures outpacing asset growth. The substantial increase in ROA alongside rising net income suggests that the company has been effectively leveraging its asset base to improve earnings quality and operational efficiency. The steady rise in total assets indicates ongoing investment or asset accumulation, which supports the growing income levels.