Capri Holdings Ltd (CPRI)
Profitability ratios
Return on sales
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 65.04% | 66.57% | 66.10% | 64.23% | 59.17% |
| Operating profit margin | -4.69% | 12.14% | 15.94% | 0.47% | -3.47% |
| Pretax margin | -5.51% | 11.53% | 16.14% | 0.10% | -3.85% |
| Net profit margin | -4.46% | 11.01% | 14.51% | -1.53% | -4.03% |
The profitability ratios of Capri Holdings Ltd show fluctuations over the past five years. The gross profit margin has generally been stable and relatively high, indicating good control over the cost of goods sold. However, the operating profit margin, pretax margin, and net profit margin all display volatility.
In particular, the operating profit margin has fluctuated significantly, with a sharp decrease in 2020 followed by a rebound in 2021 before declining again. This suggests fluctuations in operating expenses relative to revenue. The pretax margin follows a similar pattern, reflecting fluctuations in non-operating income and expenses.
The net profit margin, which reflects the bottom line profitability after all expenses have been accounted for, also shows volatility. The company reported negative net profit margins in 2020 and 2021, indicating losses during those years. However, the net profit margin improved in 2022 and 2023, reflecting better profitability.
Overall, while Capri Holdings Ltd maintains a healthy gross profit margin, the fluctuating operating profit margin, pretax margin, and net profit margin indicate that the company may face challenges in controlling operating expenses and achieving consistent profitability. Further analysis of the company's cost structures and revenue streams may provide insights into improving profitability ratios in the future.
Return on investment
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -3.60% | 9.31% | 12.07% | 0.25% | -2.42% |
| Return on assets (ROA) | -3.42% | 8.44% | 10.99% | -0.83% | -2.81% |
| Return on total capital | -8.43% | 18.50% | 24.47% | 0.56% | -4.59% |
| Return on equity (ROE) | -14.32% | 33.33% | 32.12% | -2.87% | -10.29% |
Capri Holdings Ltd's profitability ratios show mixed performance over the past five years.
1. Operating return on assets (Operating ROA) has been fluctuating, with a significant drop in the latest year to -3.60%, indicating that the company's operating income generated from its assets decreased.
2. Return on assets (ROA) also exhibited volatility, with negative values in three out of the past five years. The negative ROA values suggest that the company's net income generated from its total assets was insufficient to cover operating expenses.
3. Return on total capital experienced a sharp decline to -8.43% in the latest year, indicating a substantial decrease in the return generated from the company's total invested capital.
4. Return on equity (ROE) depicts a similar trend with negative values for three out of the past five years. The negative ROE values imply that the company's net income available to common shareholders was not sufficient to generate positive returns on their equity investments.
In summary, Capri Holdings Ltd's profitability ratios reflect inconsistencies and a downturn in profitability performance in recent years, calling for a closer examination of the company's operational efficiency and financial management strategies.