Acuity Brands Inc (AYI)
Profitability ratios
Return on sales
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 46.45% | 43.78% | 42.01% | 42.62% | 42.16% |
| Operating profit margin | 14.43% | 12.10% | 12.80% | 12.35% | 10.64% |
| Pretax margin | 14.30% | 11.42% | 12.41% | 11.45% | 9.76% |
| Net profit margin | 11.02% | 8.84% | 9.64% | 8.85% | 7.46% |
From the profitability ratios of Acuity Brands Inc over the past five years, we can observe an upward trend in the gross profit margin, which increased from 42.16% in 2020 to 46.45% in 2024. This indicates an improvement in the company's ability to generate profits from its sales after accounting for the cost of goods sold.
The operating profit margin also displayed a positive trend, increasing from 10.64% in 2020 to 14.43% in 2024. This highlights the company's efficiency in managing its operating expenses and generating profits from its core business activities.
Moreover, the pretax margin and net profit margin also show improvement over the years, suggesting that Acuity Brands Inc has been effectively managing its overall expenses and tax obligations to enhance its bottom line profitability. The pretax margin increased from 9.76% in 2020 to 14.30% in 2024, while the net profit margin rose from 7.46% in 2020 to 11.02% in 2024.
Overall, the rising trend in all profitability ratios reflects the company's ability to enhance its profitability, indicating effective cost management, pricing strategies, and revenue growth initiatives over the years. This positive performance bodes well for Acuity Brands Inc's financial health and competitive position in the industry.
Return on investment
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 14.50% | 13.89% | 14.65% | 11.96% | 10.14% |
| Return on assets (ROA) | 11.08% | 10.15% | 11.03% | 8.57% | 7.11% |
| Return on total capital | 19.25% | 18.90% | 21.64% | 16.56% | 14.02% |
| Return on equity (ROE) | 17.77% | 17.17% | 20.09% | 14.98% | 11.67% |
Acuity Brands Inc has shown consistent improvement in its profitability ratios over the past five years, indicating effective management of its assets and capital.
1. Operating return on assets (Operating ROA) has increased steadily from 10.14% in 2020 to 14.50% in 2024, reflecting the company's ability to generate operating income relative to its total assets.
2. Return on assets (ROA) has also shown a positive trend, rising from 7.11% in 2020 to 11.08% in 2024, indicating that Acuity Brands Inc is becoming more efficient in utilizing its assets to generate profit.
3. Return on total capital has consistently increased from 14.02% in 2020 to 19.25% in 2024, demonstrating the company's effectiveness in generating returns for both equity and debt holders.
4. Return on equity (ROE) has shown significant improvement, with a rise from 11.67% in 2020 to 17.77% in 2024, indicating that the company is effectively utilizing equity investment to generate profits for shareholders.
Overall, Acuity Brands Inc's profitability ratios reveal a positive trend, reflecting the company's improving operational efficiency and ability to generate returns for its investors.