Atlas Energy Solutions Inc. (AESI)
Profitability ratios
Return on sales
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | |
|---|---|---|---|
| Gross profit margin | 22.92% | 26.68% | 35.27% |
| Operating profit margin | 11.25% | 14.42% | 23.70% |
| Pretax margin | 7.49% | 11.29% | 17.72% |
| Net profit margin | 5.92% | 8.85% | 13.87% |
Atlas Energy Solutions Inc.'s profitability ratios have displayed a declining trend over the three quarters analyzed. The gross profit margin decreased from 35.27% in June 2024 to 22.92% in December 2024, indicating a reduction in the percentage of revenue retained after accounting for the cost of goods sold. Similarly, the operating profit margin fell from 23.70% to 11.25%, reflecting a decline in the efficiency of the company's operations in generating profits before interest and taxes.
The pretax margin also decreased from 17.72% to 7.49% over the same period, showing a decline in the proportion of revenue remaining after accounting for all operating expenses but before taxes are deducted. Lastly, the net profit margin declined from 13.87% to 5.92%, indicating a decrease in the company's bottom line profitability after all expenses, including taxes, have been deducted.
Overall, the deteriorating profitability margins of Atlas Energy Solutions Inc. suggest challenges in maintaining efficient cost management and revenue generation, which may require further examination and strategic adjustments to improve the company's financial performance.
Return on investment
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | |
|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.77% | 6.71% | 9.21% |
| Return on assets (ROA) | 3.04% | 4.12% | 5.39% |
| Return on total capital | 7.60% | 8.93% | 10.31% |
| Return on equity (ROE) | 5.78% | 7.77% | 10.06% |
The profitability ratios of Atlas Energy Solutions Inc. show a declining trend over the three quarters ending December 31, 2024.
- Operating return on assets (Operating ROA) decreased from 9.21% in June 30, 2024, to 5.77% in December 31, 2024, indicating decreasing efficiency in generating operating profits relative to its total assets.
- Return on assets (ROA) also showed a decline from 5.39% in June 30, 2024, to 3.04% in December 31, 2024, reflecting decreasing overall profitability in relation to the total assets of the company.
- Return on total capital showed a declining trend as well, with a decrease from 10.31% in June 30, 2024, to 7.60% in December 31, 2024, implying a reduced ability to generate returns from the total capital employed by the company.
- Return on equity (ROE) exhibited a similar downward trend, dropping from 10.06% in June 30, 2024, to 5.78% in December 31, 2024, indicating a decreasing ability to generate profits from the shareholders' equity.
Overall, the declining profitability ratios may suggest potential challenges in the company's operational efficiency, profitability, and ability to generate returns for both asset and capital providers. Further investigation into the reasons behind these declining trends is warranted to address potential financial performance issues and drive strategies for improvement.