Concentrix Corporation (CNXC)
Profitability ratios
Return on sales
| Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | |
|---|---|---|---|
| Gross profit margin | 36.23% | 35.69% | 35.25% |
| Operating profit margin | 9.30% | 10.12% | 10.25% |
| Pretax margin | 5.74% | 9.56% | 9.95% |
| Net profit margin | 4.41% | 6.88% | 7.26% |
Concentrix Corp.'s profitability ratios exhibit several trends over the past five years. The company's gross profit margin has remained relatively stable, fluctuating around the 35-37% range. The operating profit margin experienced a peak in 2022 at 10.12% before declining to 9.30% in 2023. This indicates some variability in the efficiency of the company's operations.
The pretax margin also shows year-to-year variability, with a notable decrease in 2019 and 2020, followed by an increase in 2021 and 2022. However, it decreased again in 2023 to 5.74%. The net profit margin follows a similar pattern, showing increased variability. Although it reached a high of 7.16% in 2021, it decreased to 4.33% in 2023.
Overall, the profitability ratios demonstrate a degree of fluctuation, indicating changing levels of efficiency and profitability in the company's operations over the past five years.
Return on investment
| Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | |
|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.29% | 9.60% | 11.34% |
| Return on assets (ROA) | 2.51% | 6.52% | 8.04% |
| Return on total capital | 7.28% | 13.01% | 16.73% |
| Return on equity (ROE) | 7.57% | 16.14% | 15.48% |
Concentrix Corp.'s profitability ratios reflect the company's ability to generate earnings in relation to its assets and capital. The operating return on assets (Operating ROA) decreased from 9.60% in 2022 to 5.29% in 2023. This suggests a decline in the company's operating efficiency and profitability relative to its total assets. Similarly, the return on assets (ROA) decreased from 6.42% in 2022 to 2.46% in 2023, indicating a decrease in the company's overall ability to generate profits from its assets.
The return on total capital also declined from 13.01% in 2022 to 7.28% in 2023, indicating a decrease in the company's ability to generate returns from the total invested capital. Furthermore, the return on equity (ROE) decreased from 15.89% in 2022 to 7.43% in 2023, indicating a lower return for shareholders on their equity investment.
Overall, the declining trend in profitability ratios suggests that Concentrix Corp. may be experiencing challenges in efficiently utilizing its assets and capital to generate profits, which could impact its financial performance and shareholder value. Further analysis of the company's operational and financial strategies may be necessary to address these declines in profitability ratios.