The Cooper Companies Inc. (COO)
Profitability ratios
Return on sales
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 67.60% | 66.26% | 67.58% | 64.14% | 68.21% |
| Operating profit margin | 15.28% | 15.72% | 17.48% | 13.03% | 21.23% |
| Pretax margin | 11.84% | 14.72% | 16.98% | 11.14% | 18.54% |
| Net profit margin | 8.43% | 11.95% | 101.76% | 9.96% | 18.12% |
Cooper Companies, Inc.'s profitability ratios reflect its ability to generate earnings relative to its revenue and expenses. The trend in gross profit margin indicates a slight fluctuation, with a decrease from 66.92% in 2021 to 64.67% in 2022, followed by an increase to 65.62% in 2023. This suggests variability in the cost of goods sold relative to revenue.
Furthermore, the operating profit margin also shows variability, declining from 17.31% in 2021 to 15.34% in 2022, then further to 14.84% in 2023. This signals fluctuations in operating expenses relative to revenue, potentially impacting overall profitability.
The pretax margin declined from 16.82% in 2021 to 14.37% in 2022, and further to 11.49% in 2023, reflecting trends similar to the operating profit margin and indicating changes in the company's ability to generate profits before taxes.
Additionally, the net profit margin experienced significant volatility, with a notable anomaly of 100.76% in 2021, which is likely an accounting or data anomaly. Excluding this outlier, there was a consistent decline from 17.59% in 2019 to 11.66% in 2022 and further to 8.19% in 2023, which highlights a decrease in net income relative to revenue.
In summary, Cooper Companies, Inc.'s profitability ratios exhibit fluctuations, suggesting potential challenges in managing costs and expenses to sustain profitability. Further analysis of the underlying factors contributing to these fluctuations may be necessary to inform strategic decision-making.
Return on investment
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.57% | 4.42% | 5.27% | 4.63% | 8.71% |
| Return on assets (ROA) | 2.52% | 3.36% | 30.65% | 3.54% | 7.44% |
| Return on total capital | 5.15% | 5.59% | 6.17% | 5.82% | 11.15% |
| Return on equity (ROE) | 3.90% | 5.38% | 42.42% | 6.23% | 12.86% |
Based on the profitability ratios of Cooper Companies, Inc. from Oct 31, 2019, to Oct 31, 2023, several observations can be made.
Firstly, looking at the Operating ROA, which measures the company's profitability from its core business operations, we can see a fluctuating trend. The ratio decreased from 8.42% in 2019 to 4.57% in 2023, indicating that the company's ability to generate profits from its assets may have decreased over the period.
Similarly, the ROA, which assesses the company's overall profitability in relation to its total assets, shows a declining trend from 7.44% in 2019 to 2.52% in 2023. This decline could imply reduced efficiency in utilizing the company's assets to generate earnings.
The return on total capital ratio also mirrors the declining trend, from 9.68% in 2019 to 5.27% in 2023. This suggests a decrease in the company's ability to generate profits from the total invested capital, including debt and equity.
Finally, the ROE exhibits a similar declining trend, from 12.86% in 2019 to 3.90% in 2023, implying a decrease in the company's ability to generate profits from shareholders' equity.
In summary, the profitability ratios of Cooper Companies, Inc. indicate a declining trend in the company's ability to generate profits from its assets, total capital, and equity over the period under consideration. This may warrant further investigation into the company's operational and financial performance.