Concentrix Corporation (CNXC)
Profitability ratios
Return on sales
| Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 36.20% | 36.23% | 35.99% | 35.87% | 35.80% | 35.69% | 35.50% | 35.15% | 35.04% | 35.25% |
| Operating profit margin | 8.29% | 9.30% | 10.10% | 10.11% | 10.09% | 10.12% | 10.08% | 10.29% | 10.14% | 10.25% |
| Pretax margin | 4.60% | 5.74% | 7.57% | 8.28% | 8.97% | 9.56% | 9.70% | 10.06% | 10.03% | 9.95% |
| Net profit margin | 3.53% | 4.41% | 5.35% | 5.85% | 6.42% | 6.88% | 7.39% | 7.66% | 7.40% | 7.26% |
Concentrix Corporation's profitability ratios over the past several quarters show a consistent trend. The gross profit margin has ranged between 35.04% and 36.23%, indicating that the company has been able to maintain a stable level of profitability after accounting for the cost of goods sold.
The operating profit margin has trended slightly downwards from 10.29% to 8.29% over the period, implying that the company's operating expenses have increased relative to its revenues. However, the operating profit margin still remains at a healthy level.
The pretax margin has also demonstrated a downward trend, starting at 10.03% and decreasing to 4.60% in the most recent quarter. This suggests that Concentrix may have experienced an increase in non-operating expenses or a decrease in other income, impacting its profitability before taxes.
Finally, the net profit margin has shown a steady decline from 7.66% to 3.53%, indicating a decrease in profitability after accounting for all expenses and taxes. This trend may raise concerns about the company's ability to generate profits for its shareholders.
In conclusion, while Concentrix Corporation has maintained a relatively stable gross profit margin, its operating profit margin, pretax margin, and net profit margin have all exhibited a downward trend over the analyzed period, signaling potential challenges in controlling operating expenses and maintaining overall profitability.
Return on investment
| Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.34% | 5.29% | 7.80% | 9.97% | 9.79% | 9.60% | 9.19% | 9.28% | 8.71% | 11.34% |
| Return on assets (ROA) | 2.27% | 2.51% | 4.13% | 5.77% | 6.23% | 6.52% | 6.73% | 6.92% | 6.36% | 8.04% |
| Return on total capital | 7.16% | 7.28% | 9.58% | 13.12% | 12.92% | 13.01% | 12.28% | 12.47% | 11.71% | 16.73% |
| Return on equity (ROE) | 6.78% | 7.57% | 12.03% | 13.26% | 14.73% | 16.14% | 17.16% | 16.79% | 15.63% | 15.48% |
Concentrix Corporation's profitability ratios have shown fluctuating trends over the past 10 quarters.
The Operating return on assets (Operating ROA) has ranged from 5.29% to 9.97%, with a recent figure of 5.34% as of Feb 29, 2024. This ratio indicates the company's ability to generate profits from its assets solely from its core operations, showing a relatively stable performance over time.
The Return on assets (ROA) has been between 2.27% and 8.04% over the same period, with a recent value of 2.27% on Feb 29, 2024. ROA measures the company's ability to generate profits from its total assets, and the decreasing trend in this ratio suggests a declining profitability efficiency in utilizing its assets.
The Return on total capital has fluctuated between 7.16% and 16.73%, with a value of 7.16% as of Feb 29, 2024. This ratio reflects the company's overall ability to generate returns for both equity and debt providers. The downward trend in this ratio indicates a decrease in returns generated from the company's total capital.
Lastly, the Return on equity (ROE) has ranged from 6.78% to 17.16%, exhibiting a recent value of 6.78% on Feb 29, 2024. ROE signifies the profitability of the company from the perspective of its common shareholders, and the declining trend in this ratio may suggest a decrease in the company's ability to generate returns specifically for its equity investors.
In conclusion, while Concentrix Corporation has maintained a relatively stable Operating ROA, the declining trends in ROA, Return on total capital, and ROE indicate potential challenges in generating profits efficiently and effectively managing its capital and equity. Further analysis of the company's financial strategy and operational efficiency may be needed to address these profitability concerns.