Adtalem Global Education Inc (ATGE)
Profitability ratios
Return on sales
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | |
|---|---|---|---|---|---|
| Gross profit margin | 59.77% | 55.92% | 55.30% | 52.06% | 49.08% |
| Operating profit margin | 19.10% | 13.70% | 11.59% | 5.53% | 12.28% |
| Pretax margin | 16.69% | 10.35% | 7.72% | -3.71% | 8.43% |
| Net profit margin | 13.26% | 8.63% | 6.43% | 22.42% | 7.79% |
The profitability ratios of Adtalem Global Education Inc. over the periods from June 30, 2021, to June 30, 2025, indicate a generally positive trend with some fluctuations.
Gross Profit Margin: The gross profit margin exhibits a consistent upward trajectory, increasing from 49.08% in 2021 to 59.77% in 2025. This improvement suggests enhanced efficiency in managing cost of goods sold or services rendered, leading to a higher proportion of revenue remaining after direct costs. The steady rise indicates effective control over production or service delivery costs and possibly favorable shifts in sales mix.
Operating Profit Margin: The operating profit margin shows more variability. It declined sharply from 12.28% in 2021 to a low of 5.53% in 2022, signaling increased operating expenses or one-time operational challenges during that period. However, it rebounded significantly afterward, reaching 11.59% in 2023, and then continued to improve to 13.70% in 2024, and further to 19.10% in 2025. The overall trend indicates a recovery and strengthening of core operating profitability.
Pretax Margin: The pretax margin experienced a notable negative value of -3.71% in 2022, reflecting potential extraordinary expenses, restructuring costs, or other factors impacting pre-tax earnings. Subsequently, it recovered well, reaching 7.72% in 2023, and further increasing to 10.35% in 2024, and 16.69% in 2025. This upward trend suggests improved operational performance and possibly more favorable tax or financial conditions contributing to pre-tax profitability.
Net Profit Margin: The net profit margin displays considerable volatility. It peaked sharply at 22.42% in 2022, following a modest 7.79% in 2021, indicating a significant one-time gain or exceptional income in that year. Conversely, it fell to 6.43% in 2023, then increased again to 8.63% in 2024, and reached 13.26% in 2025. The fluctuations highlight periods of extraordinary income or expenses influencing net results, but the overall positive trajectory in recent years reflects improving net profitability.
In summary, Adtalem Global Education Inc.'s profitability ratios portray a company that has shown improving profitability margins over the observed period. The steady increase in gross profit margin coupled with recovering and rising operating, pretax, and net margins suggests operational efficiencies, effective cost management, and a restructuring of revenues that have enhanced profitability. The notably volatile net income margin indicates the influence of exceptional items or external factors during certain periods, but the overall trend over time points toward strengthening financial performance.
Return on investment
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 12.41% | 7.92% | 5.98% | 2.53% | 3.62% |
| Return on assets (ROA) | 8.61% | 4.99% | 3.32% | 10.27% | 2.29% |
| Return on total capital | 24.47% | 16.62% | 12.01% | 5.17% | 9.70% |
| Return on equity (ROE) | 16.54% | 9.99% | 6.41% | 20.66% | 5.38% |
The analysis of Adtalem Global Education Inc.'s profitability ratios over the period from June 2021 to June 2025 reveals notable fluctuations and an overall improving trend in key performance indicators.
Starting with the Operating Return on Assets (Operating ROA), the data indicates a decline from 3.62% in June 2021 to a low of 2.53% in June 2022. Subsequently, the ratio recovered sharply, reaching 5.98% in June 2023 and continuing upward to 7.92% in June 2024. The most recent figure for June 2025 demonstrates significant growth, reaching 12.41%. This progression suggests that the company's core operational efficiency, in terms of generating income relative to its assets, has markedly improved in the latter part of the analysis period.
Examining the standard Return on Assets (ROA), the ratio exhibits more volatility. It starts at 2.29% in June 2021, spikes to a substantial 10.27% in June 2022, then diminishes to 3.32% in June 2023. The following years show recovery, with ROA rising to 4.99% in June 2024 and further to 8.61% in June 2025. This pattern reflects fluctuations in overall asset profitability, possibly influenced by changes in net income and asset base.
The Return on Total Capital displays a consistent upward trajectory, increasing from 9.70% in June 2021 to 24.47% in June 2025. A noteworthy decline from 9.70% in 2021 to 5.17% in 2022 is followed by a steady ascent, indicating enhanced efficiency in utilizing both debt and equity capital to generate earnings. The substantial increase in later years suggests significant improvements in capital management and profitability.
Finally, the Return on Equity (ROE) exhibits considerable variability. It was 5.38% in June 2021, then experienced a dramatic rise to 20.66% in June 2022, before declining again to 6.41% in June 2023. The upward trend resumes with figures of 9.99% in June 2024 and 16.54% in June 2025, demonstrating increased shareholder value and enhanced earnings relative to shareholders’ equity in the later periods.
In summary, while profitability ratios demonstrate some volatility over the analyzed period, there is a clear trend toward improved profitability in recent years, particularly reflected in the rising Operating ROA, Return on Total Capital, and Return on Equity. These trends suggest a positive development in the firm's operational and financial efficiency, leading to greater value creation for shareholders and better utilization of assets and capital resources in the most recent fiscal years.