Aspen Technology Inc (AZPN)
Profitability ratios
Return on sales
| Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | |
|---|---|---|---|---|---|---|---|
| Gross profit margin | 66.07% | 65.48% | 63.83% | 63.51% | 64.22% | 45.17% | 45.82% |
| Operating profit margin | -7.94% | -11.11% | -17.21% | -18.42% | -17.53% | -9.95% | -5.90% |
| Pretax margin | -3.89% | -6.71% | -14.04% | -12.26% | -17.30% | -10.62% | -6.65% |
| Net profit margin | -0.87% | -2.46% | -8.17% | -12.57% | -10.32% | -5.33% | -2.11% |
Aspen Technology Inc's profitability ratios exhibit fluctuating trends over the past few quarters. The gross profit margin has shown a generally increasing pattern, indicating efficient cost management and pricing strategies. However, the operating profit margin, pretax margin, and net profit margin have experienced significant declines, suggesting challenges in controlling operating expenses and generating profits after accounting for all costs and taxes. The negative operating profit and pretax margins indicate that the company is incurring more expenses than it is generating in operating income and pre-tax profits. The negative net profit margin also highlights that Aspen Technology Inc is experiencing losses on a net income basis. Overall, there is room for improvement in controlling expenses and enhancing revenue generation to improve the company's profitability.
Return on investment
| Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | |
|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -0.64% | -0.87% | -1.28% | -1.35% | -1.26% | -1.05% | -0.52% |
| Return on assets (ROA) | -0.07% | -0.19% | -0.61% | -0.92% | -0.74% | -0.56% | -0.19% |
| Return on total capital | -0.70% | -0.96% | -1.42% | -1.49% | -1.40% | -1.17% | -0.59% |
| Return on equity (ROE) | -0.08% | -0.21% | -0.67% | -1.01% | -0.82% | -0.62% | -0.21% |
Aspen Technology Inc's profitability ratios have shown a consistent trend of decline over the seven quarters presented.
1. Operating return on assets (Operating ROA) has decreased from -0.52% in December 2022 to -0.64% in June 2024. This indicates that the company's ability to generate profit from its assets used in operations has deteriorated over time.
2. Return on assets (ROA) has also followed a downward trajectory, dropping from -0.19% in March 2023 to -0.07% in June 2024. This signifies a decline in the company's overall efficiency in generating profits from its total assets.
3. Return on total capital has exhibited a similar declining pattern, sinking from -0.59% in December 2022 to -0.70% in June 2024. This suggests that the return generated by the company on its total invested capital has weakened.
4. Return on equity (ROE) has mirrored the trend of deterioration, sliding from -0.21% in December 2022 to -0.08% in June 2024. This indicates a decrease in the company's ability to generate returns for its shareholders from their equity investments.
Overall, the declining trend across these profitability ratios for Aspen Technology Inc reflects challenges in effectively utilizing assets, generating profits, and maximizing returns for both investors and the company itself.