Capri Holdings Ltd (CPRI)
Profitability ratios
Return on sales
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Gross profit margin | — | 64.58% | 66.28% | 66.22% | 63.97% |
| Operating profit margin | — | -4.66% | 9.08% | 12.70% | 0.47% |
| Pretax margin | — | -5.47% | 11.53% | 16.18% | 0.07% |
| Net profit margin | — | -4.43% | 10.96% | 14.54% | -1.55% |
Capri Holdings Ltd's gross profit margin has shown a positive trend over the years, increasing from 63.97% in March 2021 to 66.28% in March 2023, before experiencing a slight decline to 64.58% in March 2024. However, there is no data available for March 2025 to analyze the trend further.
In terms of operating profit margin, Capri Holdings Ltd significantly improved from a mere 0.47% in March 2021 to 12.70% in March 2022. However, there was a decline in the operating profit margin to 9.08% in March 2023, followed by a negative operating profit margin of -4.66% in March 2024. Unfortunately, there is no data for March 2025 for further analysis.
The pretax margin of Capri Holdings Ltd also exhibited a positive trend, increasing from 0.07% in March 2021 to 16.18% in March 2022. However, there was a decrease to 11.53% in March 2023 and further declined to -5.47% in March 2024. Again, there is no data available for March 2025, hindering a complete analysis.
Lastly, the net profit margin of Capri Holdings Ltd showcased fluctuations over the years, starting at -1.55% in March 2021, then improving to 14.54% in March 2022 before decreasing to 10.96% in March 2023. The net profit margin turned negative again at -4.43% in March 2024. Unfortunately, there is no available data for March 2025 for a complete assessment.
In summary, Capri Holdings Ltd has shown fluctuations in its profitability margins over the years, with some improvements and declines noted across different periods. Further data for March 2025 would be essential to provide a comprehensive assessment of the company's profitability ratios.
Return on investment
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | — | -3.60% | 6.99% | 9.60% | 0.25% |
| Return on assets (ROA) | — | -3.42% | 8.44% | 10.99% | -0.84% |
| Return on total capital | — | 24.20% | 44.48% | 38.84% | 2.13% |
| Return on equity (ROE) | — | -14.32% | 33.33% | 32.12% | -2.92% |
Based on the provided data, we can analyze the profitability ratios of Capri Holdings Ltd over the years from March 31, 2021, to March 31, 2024.
1. Operating Return on Assets (Operating ROA):
- In March 2021, the Operating ROA was very low at 0.25%, indicating the company's inefficiency in generating operating profits from its total assets.
- The ratio improved significantly in March 2022 to 9.60%, showing a substantial increase in operating profitability.
- By March 2023, the Operating ROA decreased to 6.99%, still relatively healthy compared to the previous year.
- However, there was a notable decline in performance by March 2024, as the Operating ROA turned negative at -3.60%, indicating operational challenges or losses.
2. Return on Assets (ROA):
- ROA was negative in March 2021, at -0.84%, revealing that the company's net income was insufficient to cover its total assets.
- The situation improved markedly in March 2022, with an ROA of 10.99%, indicating the company's ability to generate more substantial profits relative to its total assets.
- By March 2023, the ROA remained healthy at 8.44%, showing consistent profitability.
- However, by March 2024, the ROA dropped to -3.42%, suggesting a decline in profitability and potential financial challenges.
3. Return on Total Capital:
- The Return on Total Capital in March 2021 was 2.13%, indicating the company's ability to generate a modest return on the total capital employed.
- There was a significant improvement in March 2022, with a Return on Total Capital of 38.84%, highlighting the company's efficient utilization of capital to generate profits.
- This positive trend continued in March 2023, with a further increase to 44.48%, demonstrating robust profitability relative to the total capital invested.
- However, by March 2024, the Return on Total Capital declined to 24.20%, indicating a reduction in profitability compared to the previous year.
4. Return on Equity (ROE):
- In March 2021, the ROE was negative at -2.92%, suggesting that the company's shareholders experienced a loss on their investments.
- The ROE improved significantly in March 2022 to 32.12%, indicating a substantial return for equity investors.
- By March 2023, the ROE remained high at 33.33%, showing continued profitability and value creation for shareholders.
- However, there was a notable decline in ROE by March 2024, dropping to -14.32%, indicating a significant decrease in the return to equity holders.
In conclusion, the profitability ratios of Capri Holdings Ltd show fluctuations over the years, with notable improvements in certain periods but also facing challenges in others. It is essential for the company to assess the reasons behind the declines in profitability and implement strategies to sustain and enhance its profitability in the future.