Box Inc (BOX)
Profitability ratios
Return on sales
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | |
|---|---|---|---|---|---|
| Gross profit margin | 79.08% | 74.89% | 74.51% | 71.47% | 70.84% |
| Operating profit margin | 7.31% | 4.89% | 3.72% | -3.16% | -4.57% |
| Pretax margin | 7.81% | 6.03% | 3.47% | -4.28% | -5.48% |
| Net profit margin | 18.49% | 12.43% | 2.70% | -4.74% | -5.64% |
Box Inc has shown consistent improvement in its profitability ratios over the years.
The Gross Profit Margin has been increasing steadily from 70.84% in January 31, 2021, to 79.08% in January 31, 2025. This indicates that the company has been effectively managing its production costs and maximizing its profit on sales.
The Operating Profit Margin, which was initially negative at -4.57% in January 31, 2021, has progressively improved to 7.31% in January 31, 2025. This demonstrates that Box Inc has been able to control its operating expenses and generate more profit from its core business operations.
The Pretax Margin has also shown positive growth, starting from -5.48% in January 31, 2021, to 7.81% in January 31, 2025. This suggests that the company has been able to increase its profitability before accounting for taxes, reflecting overall financial health.
Furthermore, the Net Profit Margin has experienced significant growth from -5.64% in January 31, 2021, to 18.49% in January 31, 2025. This indicates that Box Inc has been successful in managing its expenses and generating higher profits after accounting for all costs and taxes.
Overall, the trend of increasing profitability margins across all levels demonstrates the company's ability to efficiently manage its operations and finances, resulting in improved financial performance and potential for sustained growth in the future.
Return on investment
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.78% | 4.09% | 3.05% | -1.98% | -2.61% |
| Return on assets (ROA) | 12.09% | 10.40% | 2.22% | -2.98% | -3.21% |
| Return on total capital | 40.09% | 83.16% | — | -33.02% | -26.32% |
| Return on equity (ROE) | 102.18% | 211.41% | — | -44.68% | -28.75% |
The profitability ratios of Box Inc provide insights into the company's ability to generate profits relative to its assets, capital, and equity over a period of five years.
1. Operating return on assets (Operating ROA) shows the company's operational efficiency in utilizing its assets to generate operating profits. The trend indicates an improvement from -2.61% in January 2021 to 4.78% in January 2025, suggesting better operational performance over the period.
2. Return on assets (ROA) reflects the company's overall ability to generate profits from its total assets. The ratio improved significantly from -3.21% in January 2021 to 12.09% in January 2025, indicating a positive trend in profitability relative to the assets employed.
3. Return on total capital measures the return generated from all forms of capital, including debt and equity. The ratio fluctuated from negative values in 2021 and 2022 to 83.16% in January 2024, showing a substantial improvement in capital efficiency and profitability.
4. Return on equity (ROE) indicates the return generated for the shareholders' equity invested in the company. The ratio improved from negative values in 2021 and 2022 to 102.18% in January 2025, reflecting a significant enhancement in shareholder value.
Overall, the improving trend in profitability ratios over the five-year period suggests that Box Inc has enhanced its operational efficiency, asset utilization, and ability to generate returns for its investors. However, further analysis of underlying factors driving these improvements would be necessary to fully assess the company's financial performance and sustainability.