Azenta Inc (AZTA)
Profitability ratios
Return on sales
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 39.44% | 9.53% | 48.65% | 19.39% | 11.66% |
| Operating profit margin | -10.96% | -0.92% | -6.20% | -4.12% | -4.11% |
| Pretax margin | -4.77% | 79.54% | 18.09% | 5.73% | 35.91% |
| Net profit margin | -2.14% | 79.49% | 22.10% | 7.30% | 37.88% |
Looking at Azenta Inc's profitability ratios over the last five years, several trends and fluctuations can be observed.
Gross profit margin:
The gross profit margin has been gradually declining from 47.46% in 2021 to 39.57% in 2023. This indicates that the company's cost of goods sold has been increasing relative to its revenue, which could be a cause for concern.
Operating profit margin:
The operating profit margin has shown significant volatility, with negative margins in 2020 and 2021, a slight improvement in 2022, and a substantial decline to -13.10% in 2023. This suggests that the company's operating expenses are high relative to its revenue, leading to operational inefficiencies and reduced profitability.
Pretax margin:
The pretax margin has fluctuated widely, with negative margins in 2020 and 2021, a slight improvement in 2022, and a further decline to -4.58% in 2023. This indicates that the company's overall profitability before accounting for taxes has been unstable and trending downwards.
Net profit margin:
The net profit margin has displayed significant variability, with a dramatic increase to 383.95% in 2022, followed by a sharp drop to -2.14% in 2023. This could be a result of one-time gains or losses impacting the company's net income, leading to an unreliable indicator of its true profitability.
Overall, Azenta Inc's profitability ratios demonstrate a concerning pattern of declining margins and significant fluctuations, indicating potential challenges in managing costs and generating consistent profits. Investors and stakeholders should closely monitor the company's financial performance and seek further insights into the factors driving these trends.
Return on investment
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -2.53% | -0.67% | -1.71% | -2.35% | -3.13% |
| Return on assets (ROA) | -0.49% | 57.39% | 6.09% | 4.16% | 28.85% |
| Return on total capital | -2.89% | 63.59% | 6.74% | 4.26% | 36.73% |
| Return on equity (ROE) | -0.56% | 63.41% | 8.36% | 5.34% | 38.41% |
Azenta Inc's profitability ratios reflect its ability to generate returns from its assets and equity over the past five years. The Operating Return on Assets (Operating ROA), which measures the company's operating income generated per dollar of assets, has shown a declining trend from 3.16% in 2019 to -3.02% in 2023. This indicates that Azenta Inc's operating income relative to its assets has deteriorated over the years, potentially due to decreasing operating efficiency or profitability.
The Return on Assets (ROA), which measures the overall earnings generated relative to the total assets, also presents a concerning trend. Azenta Inc exhibited an exceptionally high ROA of 57.39% in 2022, followed by a significant decline to -0.49% in 2023. This sharp downturn could be attributed to decreased net income and/or an increase in total assets, signifying a potential inefficiency in asset utilization.
Furthermore, the Return on Total Capital, which evaluates the earnings generated in relation to the total capital invested in the company, reflects a similar declining trend. The ratio has fallen from 4.03% in 2019 to -3.44% in 2023, indicating a notable decrease in the company's ability to generate returns on its total invested capital.
In contrast, the Return on Equity (ROE), a measure of the returns generated relative to shareholders' equity, also presents a declining trend from 38.41% in 2019 to -0.56% in 2023. This reduction suggests lower profitability derived from the shareholders' equity over the years, potentially indicating decreased shareholder value.
Overall, the declining trends in Azenta Inc's profitability ratios, particularly the Operating ROA, ROA, Return on Total Capital, and ROE, may raise concerns about the company's operational and financial performance. Further analysis of the underlying factors influencing these ratios, such as cost management, revenue generation, and asset utilization, would be necessary to arrive at a comprehensive understanding of Azenta Inc's financial sustainability and operational efficiency.