American Woodmark Corporation (AMWD)
Profitability ratios
Return on sales
| Apr 30, 2025 | Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | |
|---|---|---|---|---|---|
| Gross profit margin | 17.93% | 20.45% | 17.30% | 12.19% | 18.31% |
| Operating profit margin | 8.20% | 8.74% | 6.60% | -3.27% | 6.58% |
| Pretax margin | 7.40% | 8.23% | 5.94% | -2.31% | 4.63% |
| Net profit margin | 5.82% | 6.29% | 4.54% | -1.60% | 3.51% |
The analysis of American Woodmark Corporation’s profitability ratios from April 30, 2021, through April 30, 2025, reveals notable fluctuations and emerging trends.
Gross profit margin experienced considerable variability over the period. It decreased significantly from 18.31% in 2021 to a low of 12.19% in 2022, indicating increased costs or pricing pressures during that year. Subsequently, the gross margin improved to 17.30% in 2023, and further increased to 20.45% in 2024, suggesting a successful reversal of prior challenges and an ability to enhance gross profitability. The slight decline to 17.93% in 2025 indicates some margin compression towards the end of the period but remains notably higher than the low point in 2022.
The operating profit margin exhibited a similar pattern. It was relatively healthy at 6.58% in 2021 but swung into negative territory at -3.27% in 2022, reflecting significant operational difficulties or increased expenses impacting operational efficiency. In 2023, the margin rebounded strongly to 6.60%, and this improvement persisted, reaching 8.74% in 2024. The margin remained stable at 8.20% in 2025, indicating consistent operational profitability in the latter years following prior volatility.
Pretax margin aligns with the operating trend. It was 4.63% in 2021, dipped to -2.31% in 2022, and recovered to 5.94% in 2023. The margins then continued an upward trajectory to 8.23% in 2024, before a slight decline to 7.40% in 2025. This progression indicates that the company's ability to translate operating income into pre-tax profits improved markedly after 2022.
The net profit margin reflects the bottom-line profitability and closely mirrors the trends observed in the pretax margin. Starting at 3.51% in 2021, it declined to -1.60% in 2022, demonstrating a net loss or significant non-operational expenses during that year. The margin recovered substantially to 4.54% in 2023 and further improved to 6.29% in 2024, before decreasing moderately to 5.82% in 2025. These figures suggest that the company was able to regain profitability post-2022, with consistent improvements in net profitability during 2023 and 2024, albeit with some minor margin compression in 2025.
Overall, American Woodmark’s profitability ratios indicate a period of considerable volatility in 2022, likely due to increased costs, operational challenges, or other external factors. However, subsequent years show a positive trend of margin recovery and stabilization. The improvements in gross, operating, pretax, and net profit margins through 2023 and 2024 point to effective management strategies and operational initiatives that restored profitability. The slight decline noted in 2025 warrants ongoing monitoring, but the overall trend reflects a company that has rebounded from earlier difficulties and maintained a generally favorable profitability profile in recent years.
Return on investment
| Apr 30, 2025 | Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.93% | 10.13% | 8.98% | -3.72% | 7.01% |
| Return on assets (ROA) | 6.33% | 7.29% | 6.17% | -1.82% | 3.74% |
| Return on total capital | 15.81% | 17.59% | 15.44% | -4.24% | 13.98% |
| Return on equity (ROE) | 10.86% | 12.77% | 10.73% | -3.85% | 8.24% |
The profitability ratios of American Woodmark Corporation over the period from April 30, 2021, to April 30, 2025, exhibit notable fluctuations and trends.
Starting with the operating return on assets (Operating ROA), the ratio was 7.01% in 2021, declined sharply into negative territory at -3.72% in 2022, then rebounded significantly to 8.98% in 2023, further rising to 10.13% in 2024, before slightly declining to 8.93% in 2025. This pattern suggests a period of operational hardship in 2022, followed by a strong recovery driven likely by improved operational efficiency or market conditions.
In terms of the overall return on assets (ROA), the ratio followed a similar trend. It was modest at 3.74% in 2021, experienced a decline into negative territory at -1.82% in 2022, then recovered substantially to reach 6.17% in 2023. The ROA continued its upward trend in 2024 to 7.29%, before stabilizing somewhat at 6.33% in 2025. This indicates a recovery in asset profitability after the dip in 2022.
The return on total capital (ROTC) demonstrates a more pronounced volatility. It was 13.98% in 2021, dropped sharply to -4.24% in 2022, then surged to 15.44% in 2023 and increased further to 17.59% in 2024, before decreasing slightly to 15.81% in 2025. The pattern reflects a significant dip corresponding with the economic or operational challenges in 2022 but shows a robust recovery and positive performance in subsequent years.
The return on equity (ROE) exhibited a similar pattern. It was 8.24% in 2021, fell into negative territory at -3.85% in 2022, then increased to 10.73% in 2023, further to 12.77% in 2024, and slightly declined to 10.86% in 2025. The data indicates that shareholder return was adversely affected in 2022, with substantial recovery in the subsequent years, aligning with improved operational and financial performance.
Overall, American Woodmark Corporation experienced a significant downturn in profitability metrics in 2022, likely due to external or internal challenges. Since then, the ratios have shown a consistent upward trend, indicating improved profitability and operational efficiency, with most ratios returning to or surpassing pre-2022 levels by 2024. The stability in these ratios toward the latter part of the period suggests a recovery phase and a return to positive growth in profitability for the company.