Calix Inc (CALX)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 49.82% | 50.16% | 52.49% | 49.69% | 44.56% |
| Operating profit margin | 2.46% | 6.06% | 10.88% | 6.86% | -3.65% |
| Pretax margin | 3.34% | 6.23% | 10.69% | 6.38% | -3.92% |
| Net profit margin | 2.82% | 4.72% | 35.09% | 6.23% | -4.20% |
Calix Inc's profitability ratios exhibit mixed trends over the past five years. The gross profit margin has shown some fluctuations but generally remained above 44%, indicating the company's ability to generate revenue after accounting for the cost of goods sold. However, there was a slight decrease in the gross profit margin from 2021 to 2023.
The operating profit margin, which reflects the company's ability to control operating expenses, has declined steadily from 2019 to 2023. This indicates that Calix Inc may be facing challenges in managing its operating costs efficiently.
The pretax margin, showing the proportion of earnings before taxes relative to total revenue, has fluctuated over the years but has generally trended downwards. This suggests that the company's profitability before taxes has been on a downward trajectory since 2019.
The net profit margin, representing the final amount of profit for every dollar of sales after all expenses have been deducted, has also shown variability. However, the significant increase in net profit margin in 2021 stands out as a positive outlier, likely driven by one-time events or accounting adjustments.
Overall, Calix Inc's profitability ratios reveal a mixed performance with some areas of strength, such as the gross profit margin, and areas of concern, specifically the declining trends in operating profit margin and pretax margin. Further analysis of the company's cost management and revenue generation strategies may be necessary to address the declining profitability ratios in recent years.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 2.72% | 5.95% | 9.96% | 8.62% | -4.86% |
| Return on assets (ROA) | 3.11% | 4.63% | 32.13% | 7.84% | -5.58% |
| Return on total capital | 3.56% | 7.74% | 13.01% | 13.14% | -10.00% |
| Return on equity (ROE) | 4.08% | 6.03% | 41.94% | 11.94% | -11.49% |
Calix Inc's profitability ratios have fluctuated over the past five years.
Starting with Operating return on assets (Operating ROA), we can see a declining trend from 10.09% in 2020 to 2.72% in 2023. This indicates that the company's operating income generated from its assets has decreased over time, which could be a cause for concern.
Looking at Return on assets (ROA), we observe a significant spike in 2021 to 32.13%, followed by a decline in the following years. This spike may be attributed to certain one-time events or changes in the company's operations during that period.
Return on total capital shows a consistent decrease from 15.23% in 2020 to 3.56% in 2023. This indicates that the company's overall profitability in relation to its total capital employed has been decreasing gradually.
Finally, Return on equity (ROE) also exhibits a similar trend to ROA, with a sharp increase in 2021 followed by a decline in subsequent years. The negative figure in 2019 suggests the company incurred a net loss that year.
Overall, Calix Inc's profitability ratios show mixed performance over the past five years, with fluctuations that may indicate changes in the company's financial health and operational efficiency. It would be advisable for investors and stakeholders to further investigate the factors contributing to these fluctuations to assess the company's future performance and sustainability.