Corcept Therapeutics Incorporated (CORT)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 98.39% | 98.66% | 98.66% | 98.56% | 98.42% |
| Operating profit margin | 20.29% | 22.24% | 28.03% | 34.01% | 36.23% |
| Pretax margin | 23.92% | 25.82% | 28.91% | 34.16% | 37.19% |
| Net profit margin | 20.70% | 22.00% | 25.24% | 30.74% | 29.96% |
Corcept Therapeutics Incorporated has shown strong gross profit margins over the years, with gradual improvement from 98.42% in December 2020 to 98.39% in December 2024. This indicates the company has been able to effectively control its cost of goods sold.
However, the operating profit margin has been on a declining trend, decreasing from 36.23% in December 2020 to 20.29% in December 2024. This suggests that Corcept Therapeutics has faced challenges in managing its operating expenses relative to its revenue.
Similarly, the pretax margin has also experienced a downward trend from 37.19% in December 2020 to 23.92% in December 2024. This indicates that the company's profitability before accounting for taxes has been decreasing over the years.
The net profit margin has followed the same downward trajectory, declining from 29.96% in December 2020 to 20.70% in December 2024. This indicates that after accounting for all expenses, including taxes, the company's profitability relative to its revenue has been decreasing.
In conclusion, while Corcept Therapeutics has maintained a high gross profit margin, the declining operating profit margin, pretax margin, and net profit margin raise concerns about the company's ability to effectively manage its expenses and sustain profitability in the long term.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 16.29% | 17.26% | 19.31% | 29.37% | 22.42% |
| Return on assets (ROA) | 16.62% | 17.08% | 17.38% | 26.55% | 18.54% |
| Return on total capital | 0.00% | 21.17% | 22.44% | 33.12% | 24.50% |
| Return on equity (ROE) | 20.56% | 20.95% | 20.21% | 29.94% | 20.26% |
Corcept Therapeutics Incorporated has demonstrated strong profitability performance over the years as indicated by its various profitability ratios.
1. Operating Return on Assets (Operating ROA):
- The company's Operating ROA has shown a positive trend, increasing from 22.42% in December 2020 to 29.37% in December 2021, before declining to 16.29% in December 2024. This ratio suggests that the company is efficiently generating operating profits from its assets.
2. Return on Assets (ROA):
- The ROA also reflects a generally positive performance, with the ratio ranging from 16.62% in December 2024 to 26.55% in December 2021. This metric indicates the company's ability to generate earnings relative to its total assets.
3. Return on Total Capital:
- The Return on Total Capital was notably high in 2021 at 33.12%, indicating efficient capital utilization. However, the ratio dropped to 0.00% in December 2024. This decline may be a cause for concern and may require further investigation into the company's capital structure and profitability.
4. Return on Equity (ROE):
- Corcept Therapeutics' ROE has been relatively stable, fluctuating between 20.21% and 29.94% over the period under consideration. This metric reflects the company's ability to generate returns for its shareholders from their equity investments.
In conclusion, Corcept Therapeutics has generally exhibited strong profitability performance, with varying levels of efficiency in generating returns from different perspectives, such as assets, operating activities, capital, and equity. The declining trend in some ratios, particularly Return on Total Capital, should be monitored closely to ensure sustained profitability and efficient capital utilization.