Calix Inc (CALX)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 54.55% | 49.86% | 50.17% | 52.49% | 49.33% |
| Operating profit margin | -5.18% | 2.46% | 6.06% | 10.88% | 6.81% |
| Pretax margin | -3.81% | 3.34% | 6.23% | 10.69% | 6.33% |
| Net profit margin | -3.58% | 2.82% | 4.73% | 35.09% | 6.19% |
Calix Inc's gross profit margin has shown a consistent improvement from 2020 to 2024, with the ratio increasing from 49.33% to 54.55%. This indicates that the company has been able to effectively manage its cost of goods sold relative to its revenue over the years.
However, when looking at the operating profit margin, there is some fluctuation in performance. The margin increased significantly in 2021 but then decreased sharply in 2024, even turning negative. This suggests that Calix Inc may be facing challenges in controlling its operating expenses compared to its revenue.
Similarly, the pretax margin also shows variability in performance, with a notable decrease from 2021 to 2024. The decreasing trend indicates that the company's profitability before accounting for taxes has been on a declining trajectory.
The net profit margin, which reflects the company's overall profitability, also demonstrates a decline over the years, with the ratio turning negative in 2024. This implies that Calix Inc's profitability after accounting for all expenses, including taxes, has been under pressure.
In summary, while Calix Inc has shown improvement in its gross profit margin, the declining trends in operating profit margin, pretax margin, and net profit margin raise concerns about the company's overall profitability and financial performance in recent years. It would be crucial for the company to address the issues impacting its profitability to ensure sustainable growth and financial health.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -4.58% | 2.72% | 5.95% | 9.96% | 8.62% |
| Return on assets (ROA) | -3.17% | 3.11% | 4.63% | 32.13% | 7.84% |
| Return on total capital | 0.00% | 3.56% | 7.15% | 12.85% | 12.80% |
| Return on equity (ROE) | -3.81% | 4.08% | 6.03% | 41.94% | 11.94% |
Calix Inc's profitability ratios indicate fluctuating performance over the years. The Operating Return on Assets (Operating ROA) improved from 8.62% in 2020 to 9.96% in 2021 but declined to 5.95% in 2022, further dropping to 2.72% in 2023 and turning negative at -4.58% in 2024. This suggests a trend of declining operational efficiency and profitability.
Similarly, the Return on Assets (ROA) saw a significant increase from 7.84% in 2020 to 32.13% in 2021, but then deteriorated to 4.63% in 2022, further declining to 3.11% in 2023, and turning negative at -3.17% in 2024. This pattern indicates that the company's overall profitability in relation to its total assets has experienced fluctuations.
The Return on Total Capital remained relatively stable from 2020 to 2021 at around 12-13% but declined to 7.15% in 2022, further dropping to 3.56% in 2023, and coming to 0.00% in 2024. This suggests that the return generated from the total capital employed by Calix Inc has decreased steadily over the years.
Lastly, the Return on Equity (ROE) surged from 11.94% in 2020 to 41.94% in 2021 but dropped to 6.03% in 2022, further declining to 4.08% in 2023, and turning negative at -3.81% in 2024. This indicates that the return to shareholders' equity has seen significant volatility, with a notable decline in profitability in the most recent year.
Overall, Calix Inc's profitability ratios demonstrate a mix of positive and negative trends, suggesting the company's performance in generating profit from its assets, capital, and equity has been inconsistent and may require closer examination to identify the underlying causes of these fluctuations.