Concentrix Corporation (CNXC)
Profitability ratios
Return on sales
| Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | 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 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 34.12% | 32.10% | 32.34% | 32.03% | 33.86% | 36.23% | 35.99% | 35.87% | 35.80% | 35.69% | 35.50% | 35.15% | 35.04% | 35.25% | 35.21% | 35.47% | 34.85% | 35.21% | 35.87% | 36.19% |
| Operating profit margin | 6.76% | 6.84% | 7.38% | 8.12% | 8.67% | 8.15% | 7.85% | 6.81% | 5.59% | 5.78% | 6.69% | 7.90% | 8.99% | 10.25% | 9.86% | 8.87% | 7.28% | 6.54% | 6.26% | 6.32% |
| Pretax margin | 3.41% | 3.11% | 2.80% | 3.98% | 4.60% | 5.74% | 7.57% | 8.29% | 8.98% | 9.57% | 9.71% | 10.06% | 10.03% | 9.95% | 9.51% | 8.29% | 6.50% | 5.68% | 5.06% | 4.63% |
| Net profit margin | 2.81% | 2.61% | 2.18% | 3.08% | 3.53% | 4.41% | 5.35% | 5.85% | 6.42% | 6.88% | 7.39% | 7.66% | 7.40% | 7.26% | 6.38% | 5.43% | 4.12% | 3.49% | 2.85% | 2.53% |
Concentrix Corporation's profitability has shown mixed performance over the past few years based on various profitability ratios.
- The gross profit margin has been relatively stable, ranging from 35.04% to 36.23% over the reporting periods. This indicates that Concentrix is effectively managing its production costs and generating a healthy gross profit relative to its sales.
- The operating profit margin has gradually declined from 10.25% to 6.50%. This decline suggests that the company's operating expenses have been increasing at a faster rate compared to its operating income, which could raise concerns about operational efficiency.
- The pretax margin has also shown a downward trend, falling from 9.95% to 3.01%. This indicates that Concentrix's profitability before accounting for taxes has been decreasing, which may be attributed to a combination of higher expenses and lower revenues.
- The net profit margin has experienced a significant decline from 7.26% to 2.16%. This ratio reflects Concentrix's bottom line profitability after accounting for all expenses, including taxes. The decreasing trend indicates that the company's profitability on each dollar of sales has been diminishing over time, potentially signaling underlying financial challenges.
In conclusion, while the gross profit margin has remained relatively steady, Concentrix's operating, pretax, and net profit margins have all declined over the reporting periods, raising concerns about the company's overall profitability and financial health. Management may need to address cost control measures and revenue generation strategies to improve profitability in the future.
Return on investment
| Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | 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 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.45% | 5.48% | 5.68% | 5.82% | 5.58% | 4.64% | 6.06% | 6.72% | 5.42% | 5.48% | 6.09% | 7.13% | 7.72% | 11.34% | 10.67% | 9.02% | 6.94% | 5.96% | 5.66% | 5.90% |
| Return on assets (ROA) | 2.26% | 2.09% | 1.68% | 2.20% | 2.27% | 2.51% | 4.13% | 5.77% | 6.23% | 6.52% | 6.73% | 6.92% | 6.36% | 8.04% | 6.91% | 5.52% | 3.93% | 3.18% | 2.58% | 2.36% |
| Return on total capital | 16.14% | 16.24% | 9.57% | 11.59% | 11.29% | 10.82% | 13.68% | 13.63% | 13.48% | 13.43% | 13.69% | 12.50% | 11.32% | 11.17% | 21.39% | 18.72% | 15.51% | 14.36% | 19.19% | 21.13% |
| Return on equity (ROE) | 6.68% | 6.22% | 4.92% | 6.52% | 6.78% | 7.57% | 12.03% | 13.26% | 14.73% | 16.14% | 17.16% | 16.79% | 15.63% | 15.48% | 13.49% | 11.14% | 8.43% | 7.16% | 8.11% | 7.84% |
Concentrix Corporation's profitability ratios depict a fluctuating trend over the reported periods.
- Operating Return on Assets (Operating ROA) declined from 11.34% in November 2021 to 5.22% in February 2025, indicating a decrease in the company's ability to generate operating profit from its assets over time.
- Return on Assets (ROA) also showed a decreasing trend, dropping from 8.04% in November 2021 to 1.73% in February 2025. This suggests that Concentrix's overall efficiency in generating profits from its total assets has weakened significantly.
- Return on Total Capital fluctuated, with a high of 16.73% in November 2021 and a low of 6.95% in February 2025. This ratio reflects the company's ability to generate returns for both debt and equity investors and signifies a decreasing trend.
- Return on Equity (ROE) had a similar pattern, ranging from 15.48% in November 2021 to 5.10% in February 2025. This signifies a decreasing trend in the company's ability to generate profits on shareholder equity over the reported periods.
Overall, the declining trend in profitability ratios reflects challenges that Concentrix Corporation may be facing in optimizing its asset utilization, generating returns for investors, and maintaining profitability over time. Further analysis is recommended to identify underlying causes and potential strategies for improvement.