Adtalem Global Education Inc (ATGE)
Profitability ratios
Return on sales
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 57.62% | 57.21% | 57.58% | 57.05% | 56.83% | 56.13% | 55.19% | 55.15% | 55.33% | 55.39% | 55.27% | 54.06% | 53.62% | 53.48% | 53.75% | 54.83% | 56.02% | 56.07% | 56.10% | 55.36% |
| Operating profit margin | 19.10% | 19.38% | 18.29% | 16.12% | 13.97% | 12.22% | 10.74% | 10.10% | 11.58% | 10.39% | 10.34% | 8.82% | 5.20% | 6.85% | 8.16% | 10.07% | 14.52% | 13.10% | 14.15% | 14.38% |
| Pretax margin | 16.69% | 16.40% | 15.07% | 12.71% | 10.35% | 8.85% | 9.17% | 8.15% | 7.69% | 7.58% | 4.06% | 2.09% | -1.92% | -2.74% | 0.15% | 3.44% | 11.40% | 14.40% | 25.91% | 23.52% |
| Net profit margin | 13.26% | 13.34% | 12.34% | 10.55% | 8.63% | 7.12% | 7.93% | 7.05% | 6.79% | 5.44% | 2.69% | 2.20% | -2.20% | -1.85% | -0.51% | -0.09% | 6.91% | -17.23% | -5.72% | -7.49% |
The profitability ratios of Adtalem Global Education Inc. over the period span various trends and fluctuations, reflecting the company's evolving financial performance.
Gross Profit Margin:
The gross profit margin demonstrates a consistent upward trajectory, beginning at approximately 55.36% as of September 2020. It shows a gradual increase over subsequent periods, reaching around 57.62% by June 2025. This pattern indicates an improvement in the company's ability to control direct costs and enhance core profit generation from its revenue base. The margins remained relatively stable with minor dips, underscoring a generally healthy cost structure.
Operating Profit Margin:
Operating profit margins have displayed considerable volatility. Initial figures hover around 14.38% in September 2020, with a noticeable decline during early 2021, reaching lows around 5.20% in June 2022. Subsequent periods reflect a recovery trajectory, with margins climbing back to approximately 19.10% by June 2025. This recovery suggests operational efficiencies or revenue growth that offsets rising expenses, leading to improved operating profitability.
Pre-Tax Margin:
Pre-tax margins exhibit significant fluctuation, starting at 23.52% in September 2020, then declining sharply into negative territory around March 2022. By September 2022, margins turn positive again and trend upward, reaching approximately 16.69% in June 2025. These fluctuations imply variable non-operational factors affecting pre-tax earnings, including possible restructuring costs, interest expenses, or other income variations.
Net Profit Margin:
Net profit margins reveal substantial variability, beginning negative in early periods, with figures around -7.49% in September 2020 and even lower in the following periods. From June 2022 onward, the margins trend positively, reaching approximately 13.26% by June 2025. The recent positive margins indicate improved bottom-line performance and enhanced profitability following previous periods of loss or negligible profits.
In summary, Adtalem's gross profit margin has shown a steady increase, reflecting improved efficiency in core revenue generation. Operating and pre-tax margins have experienced volatility but exhibit trends toward recovery and strengthening, while net profit margins, after oscillating through losses, have improved markedly in recent periods. These patterns underscore a company recovering from earlier challenges, fostering better profitability metrics over time.
Return on investment
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 12.41% | 12.09% | 11.33% | 9.35% | 8.07% | 6.93% | 5.95% | 5.30% | 5.98% | 5.25% | 5.25% | 4.28% | 2.48% | 2.66% | 2.85% | 3.19% | 5.29% | 4.72% | 6.83% | 6.58% |
| Return on assets (ROA) | 8.61% | 8.33% | 7.65% | 6.11% | 4.99% | 4.04% | 4.39% | 3.70% | 3.51% | 2.75% | 1.37% | 1.07% | -1.05% | -0.72% | -0.18% | -0.03% | 2.52% | -6.21% | -2.76% | -3.42% |
| Return on total capital | 22.79% | 22.34% | 21.55% | 20.75% | 17.97% | 16.39% | 14.55% | 13.09% | 11.99% | 11.72% | 9.72% | 8.62% | 3.84% | 3.72% | 5.46% | 5.90% | 12.35% | 9.52% | 18.28% | 16.84% |
| Return on equity (ROE) | 16.54% | 16.21% | 14.47% | 12.40% | 9.99% | 8.30% | 8.66% | 7.50% | 6.77% | 5.22% | 2.55% | 2.12% | -2.11% | -1.70% | -0.50% | -0.08% | 5.91% | -14.40% | -4.72% | -5.99% |
The profitability ratios for Adtalem Global Education Inc. over the specified period reveal a pattern of initial volatility followed by a notable upward trend in recent years.
Operating Return on Assets (Operating ROA) shows a recovery trajectory after a decline in the early fiscal periods. Starting at approximately 6.58% in September 2020, it slightly increased to 6.83% by December 2020, then dipped to a low of around 2.48% by June 2022. Post this low, it demonstrates a steady improvement, reaching approximately 11.33% as of December 2024, and projecting further growth up to 12.41% by June 2025. The trend indicates enhanced operational efficiency and profitability from assets in the later periods.
Return on Assets (ROA) experienced significant negative values early on, with figures like -3.42% in September 2020 and declining further to about -6.21% by March 2021. Starting in June 2021, ROA moves into positive territory, reaching 2.52%, and maintains an upward trend thereafter. By December 2024, ROA is projected at approximately 7.65%, reflecting improved overall asset utilization and profitability.
Return on Total Capital exhibits a fluctuating but generally improving pattern. Initial figures are high—around 16.84% in September 2020—then dip sharply over the subsequent periods, reaching lows near 3-4%. However, from late 2022 onwards, the ratios display a consistent upward trajectory, with figures ascending to approximately 21.55% by December 2024 and further projections to around 22.79% in June 2025. This progression suggests an increasing efficiency in generating returns from total invested capital.
Return on Equity (ROE) displays significant volatility. Early periods reflect negative values, with ROE at -5.99% in September 2020 and declining further to -14.40% in March 2021. Subsequently, there are intermittent periods of positive returns, such as 5.91% in June 2021, with the trend improving markedly from 2022 onwards. Prospective figures indicate a consistent and substantial rise, reaching over 16% by June 2025, indicating heightened shareholder returns driven by operational improvements and capital management.
In summary, Adtalem’s profitability ratios have shown a pattern of recovery and improvement following periods of negative or subdued performance. The recent upward trends in operating ROA, ROA, ROE, and return on total capital suggest successful strategic initiatives leading to increased operational efficiency, better asset utilization, and enhanced shareholder value. These developments point toward a strengthening profitability profile and positive future prospects if current trends persist.