Agilysys Inc (AGYS)
Profitability ratios
Return on sales
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 60.58% | 60.76% | 62.13% | 65.10% | 50.36% |
| Operating profit margin | 6.62% | 6.47% | 3.87% | -15.27% | -21.19% |
| Pretax margin | 8.69% | 7.93% | 3.98% | -15.45% | -21.07% |
| Net profit margin | 36.20% | 7.33% | 3.96% | -15.30% | -21.19% |
Agilysys Inc has shown fluctuations in its profitability ratios over the past five years. The gross profit margin has ranged from 50.36% in 2020 to 62.13% in 2022, with a slight decrease to 60.58% in 2024. This indicates the percentage of revenue retained after direct production costs, with the company maintaining a healthy level of gross profit despite some variability.
The operating profit margin has been more stable, ranging from -21.19% in 2020 to 6.62% in 2024. This ratio reflects the efficiency of the company in controlling its operating expenses relative to its revenue, showing improvement over the years.
Similarly, the pretax margin has also shown improvement over the years, shifting from -21.07% in 2020 to 8.69% in 2024. This ratio reflects the company's ability to generate earnings before taxes relative to its revenue.
The most notable change is seen in the net profit margin, which has fluctuated significantly from -21.19% in 2020 to 36.20% in 2024. This ratio demonstrates the company's overall profitability after all expenses have been deducted, reflecting a notable turnaround in profitability over the years.
Overall, Agilysys Inc has shown improvements in its profitability ratios over the years, indicating better control over costs and enhanced operational efficiency, leading to increased profitability and margin expansion.
Return on investment
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.50% | 5.30% | 2.95% | -11.04% | -22.04% |
| Return on assets (ROA) | 24.60% | 6.00% | 3.02% | -11.06% | -22.04% |
| Return on total capital | 8.75% | 14.42% | 6.70% | -26.53% | -47.18% |
| Return on equity (ROE) | 36.45% | 13.34% | 6.65% | -26.29% | -47.48% |
Agilysys Inc's profitability ratios show mixed performance over the five-year period.
1. Operating return on assets (Operating ROA) has decreased from 5.30% in 2023 to 4.50% in 2024, indicating a slightly lower operational efficiency in generating profits from its assets.
2. Return on assets (ROA) has shown significant improvement, increasing from 6.00% in 2023 to 24.60% in 2024. This suggests that the company has been more effective in generating profits from its total assets.
3. Return on total capital has fluctuated, reaching 8.75% in 2024 from 14.42% in 2023. This indicates that the company's ability to generate profits from its total invested capital has slightly decreased.
4. Return on equity (ROE) has improved notably over the period, from 13.34% in 2023 to 36.45% in 2024, showing that shareholders' returns have increased significantly.
Overall, while Agilysys Inc has shown improved profitability in terms of ROA and ROE, there are fluctuations in other profitability ratios such as Operating ROA and Return on total capital. It is important for investors and stakeholders to consider the company's overall financial performance and the factors influencing these ratios for a more comprehensive analysis of its profitability.