Adtalem Global Education Inc (ATGE)
Profitability ratios
Return on sales
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 13.38% | 9.14% | 2.39% | 16.11% | 14.68% |
| Operating profit margin | 13.70% | 11.59% | 5.55% | 12.28% | 12.70% |
| Pretax margin | 10.29% | 7.14% | 21.38% | 9.16% | -11.57% |
| Net profit margin | 8.63% | 6.43% | 22.51% | 7.79% | -9.85% |
Adtalem Global Education Inc has shown varying levels of profitability over the past five years, as evidenced by its profitability ratios. The gross profit margin has improved steadily from 2018 to 2024, indicating that the company has been able to increase its efficiency in generating revenue after accounting for the cost of goods sold.
Similarly, the operating profit margin has also shown a generally positive trend, with some fluctuations, suggesting that Adtalem has been effectively managing its operating expenses relative to its net sales over the years.
The pretax margin saw a significant decline in 2021, followed by a sharp increase in 2022, before moderating in 2024. This indicates that the company's pre-tax profitability has been volatile, possibly due to changes in tax policies, one-off events, or shifts in the business environment.
The net profit margin, a key indicator of overall profitability, has also fluctuated, reflecting changes in net income relative to revenue. Although the margins have been positive in the recent years, the negative margin in 2020 indicates a period of financial difficulty for the company.
Overall, Adtalem Global Education Inc's profitability ratios suggest a mix of strength and challenges in managing costs and generating profits over the past five years. Ongoing monitoring and analysis of these ratios will be essential to assess the company's financial health and performance in the future.
Return on investment
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.92% | 5.98% | 2.53% | 3.58% | 4.87% |
| Return on assets (ROA) | 4.99% | 3.32% | 10.26% | 2.27% | -3.78% |
| Return on total capital | 11.23% | 7.75% | 18.23% | 5.24% | -5.06% |
| Return on equity (ROE) | 9.99% | 6.41% | 20.85% | 5.41% | -6.52% |
Adtalem Global Education Inc's profitability ratios have shown some fluctuations over the past five years.
Operating return on assets (Operating ROA) has been improving steadily from 2.53% in 2022 to 7.92% in 2024, indicating the company's ability to generate profits from its assets used in operations.
Return on assets (ROA) has also depicted an upward trend, except for a slight dip in 2023, with a notable increase from 2.27% in 2021 to 4.99% in 2024, reflecting the company's efficiency in generating profits relative to its total assets.
Return on total capital has shown a similar pattern of improvement, surging from 5.24% in 2021 to 11.23% in 2024, demonstrating the company's effective utilization of total capital to generate returns for its stakeholders.
Return on equity (ROE) has displayed varying trends, with significant fluctuations over the years. The ratio improved from negative figures in 2020 and 2021 to 9.99% in 2024, indicating the company's ability to deliver returns to its shareholders.
Overall, Adtalem Global Education Inc's profitability ratios have generally shown positive trends, reflecting the company's efforts to enhance operational efficiency and generate adequate returns for its investors.