Aspen Technology Inc (AZPN)
Profitability ratios
Return on sales
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | |
|---|---|---|---|
| Gross profit margin | 66.07% | 64.22% | 58.55% |
| Operating profit margin | -7.94% | -17.53% | 4.62% |
| Pretax margin | -3.89% | -17.29% | 5.07% |
| Net profit margin | -0.87% | -10.32% | 8.70% |
Aspen Technology Inc's profitability ratios have shown varying trends over the past three years. The gross profit margin has been steadily increasing, from 58.55% in 2022 to 66.07% in 2024, indicating the company's ability to generate more profit from its core operations.
However, the operating profit margin and pre-tax margin have exhibited significant fluctuations. The operating profit margin improved from -17.53% in 2023 to -7.94% in 2024, suggesting potential cost control measures or enhanced operational efficiency. On the other hand, the pre-tax margin worsened from 5.07% in 2022 to -3.89% in 2024, indicating challenges in generating profits before accounting for taxes.
The net profit margin, which reflects the company's overall profitability after all expenses, shows a similar pattern of inconsistency. It decreased from 8.70% in 2022 to -0.87% in 2024, suggesting that Aspen Technology Inc may have faced profitability challenges and incurred losses in the most recent year.
Overall, Aspen Technology Inc's profitability ratios demonstrate a mix of strengths and weaknesses, with improvements in gross and operating profit margins potentially offset by declines in pre-tax and net profit margins. Further analysis of the company's cost structure, revenue streams, and overall financial health would be needed to provide a more in-depth assessment of its profitability performance.
Return on investment
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | |
|---|---|---|---|
| Operating return on assets (Operating ROA) | -0.64% | -1.26% | 0.15% |
| Return on assets (ROA) | -0.07% | -0.74% | 0.28% |
| Return on total capital | -0.70% | -1.40% | 0.17% |
| Return on equity (ROE) | -0.08% | -0.82% | 0.32% |
Aspen Technology Inc's profitability ratios show a downward trend over the past three years. The Operating return on assets (Operating ROA) has shown a negative trend, with -0.64% in 2024, compared to -1.26% in 2023 and 0.15% in 2022. This indicates that the company's operating income generated from its assets has been declining.
Similarly, the Return on assets (ROA) also displays a negative performance, with -0.07% in 2024, -0.74% in 2023, and 0.28% in 2022. This ratio signifies the overall profitability generated from the company's total assets, and the declining trend suggests inefficiency in asset utilization.
Furthermore, the Return on total capital and Return on equity (ROE) ratios have also been deteriorating. The Return on total capital shows -0.70% in 2024, -1.40% in 2023, and 0.17% in 2022, indicating a declining ability to generate profits from both debt and equity sources. The Return on equity (ROE) has also seen a negative trend, with -0.08% in 2024, -0.82% in 2023, and 0.32% in 2022, suggesting a decreasing return on shareholder equity over the years.
Overall, Aspen Technology Inc's profitability ratios demonstrate a concerning trend of decreasing profitability and efficiency in generating returns from its assets, capital, and equity, which may raise concerns among investors and stakeholders.