Concentrix Corporation (CNXC)
Profitability ratios
Return on sales
| Nov 30, 2024 | Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 35.86% | 36.23% | 35.69% | 35.25% | 35.21% |
| Operating profit margin | 6.20% | 9.30% | 5.78% | 5.40% | 0.84% |
| Pretax margin | 3.11% | 5.74% | 9.57% | 9.95% | 5.68% |
| Net profit margin | 2.61% | 4.41% | 6.88% | 7.26% | 3.49% |
Concentrix Corporation's profitability ratios indicate a mixed performance over the past five years. The gross profit margin has shown a slight increase from 35.21% in November 2020 to 35.86% in November 2024, indicating the company's ability to control production costs and generate profit from its core operations.
However, the operating profit margin, which reflects the company's efficiency in managing its operating expenses, experienced fluctuations during the period. It increased from 0.84% in November 2020 to 9.30% in November 2023 but decreased to 6.20% in November 2024, suggesting that Concentrix may have faced challenges in controlling its operating costs.
Similarly, the pretax margin, which measures the company's profitability before taxes, has been inconsistent, reaching its peak at 9.95% in November 2021 but declining to 3.11% in November 2024. This variability indicates fluctuations in Concentrix's earnings relative to its total revenue.
The net profit margin, representing the company's bottom-line profitability, also exhibited variability, with a decrease from 7.26% in November 2021 to 2.61% in November 2024. This decline suggests that Concentrix may have faced challenges in managing its overhead expenses and taxes, impacting its overall profitability.
In conclusion, while Concentrix has maintained a relatively stable gross profit margin, its operating profit margin, pretax margin, and net profit margin have shown fluctuations over the past five years, indicating the need for the company to focus on cost management and operational efficiency to enhance its overall profitability.
Return on investment
| Nov 30, 2024 | Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.97% | 5.29% | 5.48% | 5.98% | 0.77% |
| Return on assets (ROA) | 2.09% | 2.51% | 6.52% | 8.04% | 3.18% |
| Return on total capital | 15.37% | 15.96% | 24.91% | 21.17% | 13.15% |
| Return on equity (ROE) | 6.22% | 7.57% | 16.14% | 15.48% | 7.16% |
Concentrix Corporation's profitability ratios have shown varying trends over the past five years.
1. Operating Return on Assets (Operating ROA):
- The Operating ROA has improved from 0.77% in November 2020 to 5.98% in November 2021.
- Although there was a slight decline in the following years, the ratio remained relatively stable, ranging from 5.29% to 4.97%.
2. Return on Assets (ROA):
- The ROA experienced a significant increase from 3.18% in November 2020 to 8.04% in November 2021.
- However, the ratio saw a decline in the subsequent years, dropping to 2.09% by November 2024.
3. Return on Total Capital:
- The Return on Total Capital showed a positive trend, increasing from 13.15% in November 2020 to 24.91% in November 2022.
- There was a slight decrease in the later years, with the ratio ranging between 15.37% and 15.96%.
4. Return on Equity (ROE):
- The ROE demonstrated a similar pattern to the ROA, with substantial growth from 7.16% in November 2020 to 15.48% in November 2021.
- However, the ratio declined in the subsequent years, reaching 6.22% by November 2024.
Overall, Concentrix Corporation has shown improvements in profitability ratios initially but faced some challenges in maintaining those levels in later years. It is important for the company to assess the factors contributing to these changes and implement strategies to sustain and enhance profitability in the future.