American Woodmark Corporation (AMWD)
Profitability ratios
Return on sales
| Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | Apr 30, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 20.45% | 17.30% | 12.19% | 18.47% | 21.06% |
| Operating profit margin | 8.74% | 6.60% | 1.95% | 6.58% | 8.61% |
| Pretax margin | 8.23% | 5.94% | -2.31% | 4.63% | 6.74% |
| Net profit margin | 6.29% | 4.54% | -1.60% | 3.51% | 5.09% |
Over the past five years, American Woodmark Corporation has shown variations in its profitability ratios.
- Gross profit margin: The company's gross profit margin has fluctuated, with a notable increase in 2021 followed by a dip in 2022 and a subsequent rise in 2023 and 2024. Overall, the gross profit margin has shown improvement in the most recent years, indicating better control over direct costs.
- Operating profit margin: The operating profit margin has also exhibited fluctuations, with a significant jump in 2023 compared to the preceding years. This suggests the company has been able to manage its operating expenses more effectively in recent years, thereby improving profitability at the operating level.
- Pretax margin: American Woodmark Corporation's pretax margin has been volatile, including a negative figure in 2022. However, there has been a positive trend in the pretax margin from 2022 onwards, indicating better pre-tax profitability in the recent years.
- Net profit margin: The net profit margin has displayed similar trends to the pretax margin, with fluctuations and a negative figure in 2022. The net profit margin increased notably in 2023 and 2024, reflecting improved profitability after a period of decline.
In conclusion, American Woodmark Corporation has shown improvement in its profitability ratios in the most recent years, as evidenced by the increasing trend in gross profit margin, operating profit margin, pretax margin, and net profit margin. These improvements suggest that the company has been successful in managing costs and enhancing overall profitability.
Return on investment
| Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | Apr 30, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 10.13% | 8.98% | 2.21% | 6.94% | 9.26% |
| Return on assets (ROA) | 7.29% | 6.17% | -1.82% | 3.70% | 5.47% |
| Return on total capital | 17.73% | 15.60% | 4.68% | 15.17% | 22.40% |
| Return on equity (ROE) | 12.77% | 10.73% | -3.85% | 8.09% | 13.23% |
American Woodmark Corporation has shown varying levels of profitability over the past five years, as indicated by its profitability ratios.
1. Operating return on assets (Operating ROA) has improved steadily from 2.21% in 2022 to 10.13% in 2024, indicating that the company has been able to generate more operating income from its assets over time.
2. Return on assets (ROA) also demonstrates an upward trend, with an increase from -1.82% in 2022 to 7.29% in 2024. This suggests that the company is becoming more efficient in generating profits relative to its total assets.
3. Return on total capital has shown significant variability, with a low of 4.68% in 2022 and a high of 17.73% in 2024. This ratio measures the overall return generated from all sources of capital, indicating strong performance in recent years.
4. Return on equity (ROE) has exhibited improvements as well, rising from -3.85% in 2022 to 12.77% in 2024. This ratio reflects the profitability of the company from the perspective of its shareholders, suggesting that American Woodmark Corporation has been able to generate better returns on their investments.
Overall, the trend in profitability ratios for American Woodmark Corporation indicates an improvement in operational efficiency and effectiveness in generating returns for both assets and equity holders over the past five years.