Avnet Inc (AVT)
Profitability ratios
Return on sales
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 11.64% | 11.99% | 12.20% | 11.47% | 11.70% |
| Operating profit margin | 3.55% | 4.47% | 3.86% | 1.44% | -0.03% |
| Pretax margin | 2.66% | 3.70% | 3.43% | 0.89% | -0.73% |
| Net profit margin | 2.10% | 2.90% | 2.85% | 0.99% | -0.18% |
Avnet Inc's profitability ratios provide insights into its operational efficiency and ability to generate profits over the past five years. The company's gross profit margin has fluctuated slightly, ranging from 11.47% to 12.20%. This indicates that Avnet is effectively managing its cost of goods sold, although there may be potential areas for improvement to enhance gross profitability.
The operating profit margin shows a broader range of variation from 4.47% to -0.03%, reflecting fluctuations in operating expenses and efficiency in generating profits from core business activities. Avnet's ability to control operating costs and improve operational efficiency is crucial in maintaining sustainable profitability.
The pretax margin has ranged from -0.73% to 3.70%, indicating the company's ability to manage its tax burden and generate profits before tax expenses. A higher pretax margin suggests that Avnet is effectively managing its expenses and maximizing profitability before tax obligations.
The net profit margin, reflecting bottom-line profitability, has shown an improvement from -0.18% to 2.90% over the five-year period. Avnet's ability to effectively manage operating expenses, taxes, and other financial obligations is reflected in the net profit margin. However, there may be opportunities for further optimization to enhance overall profitability.
In conclusion, Avnet Inc's profitability ratios demonstrate its ability to generate profits over the years, with a focus on managing costs, operating efficiency, and bottom-line profitability. Continuously monitoring and improving these ratios can help the company sustain financial health and drive long-term growth and shareholder value.
Return on investment
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.92% | 9.51% | 9.04% | 3.15% | -0.06% |
| Return on assets (ROA) | 4.08% | 6.18% | 6.66% | 2.16% | -0.38% |
| Return on total capital | 12.48% | 15.94% | 16.58% | 4.97% | -0.13% |
| Return on equity (ROE) | 10.12% | 16.22% | 16.51% | 4.73% | -0.83% |
Avnet Inc's profitability ratios have shown a mixed performance over the past five years.
- Operating return on assets (Operating ROA) has shown a declining trend from 9.51% in 2023 to 6.92% in 2024. This indicates that the company's operating performance in generating profits from its assets has weakened slightly in the most recent period.
- Return on assets (ROA) has also decreased from 6.18% in 2023 to 4.08% in 2024, suggesting a reduction in overall profitability generated by the company's assets.
- Return on total capital has followed a similar pattern, declining from 15.94% in 2023 to 12.48% in 2024. This ratio reflects the company's ability to generate returns for both equity and debt holders, demonstrating a decreasing trend.
- Return on equity (ROE) has shown a decrease from 16.22% in 2023 to 10.12% in 2024. The declining trend in ROE indicates a decrease in the profitability of the company for its equity shareholders.
Overall, Avnet Inc's profitability ratios have experienced a downward trend in 2024, showing a decrease in the company's ability to generate profits relative to its assets and capital employed. It would be important for stakeholders to closely monitor the company's profitability management strategies in order to improve these key financial metrics.