Catalyst Pharmaceuticals Inc (CPRX)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 86.00% | 78.77% | 83.94% | 84.46% | 85.69% |
| Operating profit margin | 39.68% | 21.80% | 47.54% | 37.20% | 34.69% |
| Pretax margin | 43.98% | 23.73% | 48.89% | 37.40% | 35.18% |
| Net profit margin | 33.33% | 17.93% | 38.79% | 28.03% | 62.97% |
The gross profit margin for Catalyst Pharmaceuticals Inc has shown a slight decline from 85.69% in December 2020 to 83.94% in December 2022 before increasing to 86.00% in December 2024. This indicates the company's ability to generate sales after accounting for the cost of goods sold.
The operating profit margin reveals a fluctuating trend, with a significant increase from 34.69% in December 2020 to 47.54% in December 2022, followed by a decrease to 21.80% in December 2023, and a recovery to 39.68% in December 2024. This indicates the company's efficiency in managing operating expenses.
The pretax margin demonstrates a similar pattern to the operating profit margin, with a notable increase from 35.18% in December 2020 to 48.89% in December 2022, a drop to 23.73% in December 2023, and a climb to 43.98% in December 2024. This ratio reflects the company's ability to control costs before accounting for taxes.
The net profit margin showcases variability in profitability, with a considerable decrease from 62.97% in December 2020 to 17.93% in December 2023, before rebounding to 33.33% in December 2024. This ratio indicates the company's overall profitability after all expenses, including taxes, have been deducted.
In summary, while the gross profit margin has been relatively stable, the operating, pretax, and net profit margins have shown fluctuations over the period analyzed. This suggests that Catalyst Pharmaceuticals Inc has experienced changes in its financial performance, with varying levels of efficiency in managing costs and generating profits. It is essential for investors to closely monitor these profitability ratios to assess the company's financial health and sustainability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 22.92% | 18.47% | 27.11% | 22.03% | 21.47% |
| Return on assets (ROA) | 19.25% | 15.19% | 22.12% | 16.60% | 38.98% |
| Return on total capital | 0.00% | 22.38% | 33.90% | 25.33% | 24.35% |
| Return on equity (ROE) | 22.52% | 18.41% | 27.65% | 19.09% | 44.21% |
In analyzing Catalyst Pharmaceuticals Inc's profitability ratios, we can observe the following trends:
1. Operating Return on Assets (Operating ROA):
- Catalyst Pharmaceuticals Inc's Operating ROA has shown an increasing trend from 21.47% in 2020 to 27.11% in 2022, indicating that the company has been effectively utilizing its assets to generate operating profits. However, there was a slight decline to 18.47% in 2023 before rebounding to 22.92% in 2024.
2. Return on Assets (ROA):
- The company's ROA was relatively high at 38.98% in 2020 but dropped to 16.60% in 2021. Subsequently, there was an improvement to 22.12% in 2022, followed by a decrease to 15.19% in 2023 and a slight increase to 19.25% in 2024. This indicates that while Catalyst Pharmaceuticals Inc has been profitable in generating earnings from its assets, there have been fluctuations in its asset efficiency over the years.
3. Return on Total Capital:
- Catalyst Pharmaceuticals Inc's Return on Total Capital has fluctuated over the years, ranging from 24.35% in 2020 to 33.90% in 2022, but significantly dropped to 0.00% in 2024. This suggests that the company's ability to generate returns from total invested capital showed inconsistency, with a significant decline in 2024.
4. Return on Equity (ROE):
- The company's ROE has displayed a similar pattern to ROA, with a high ROE of 44.21% in 2020, followed by a decrease to 19.09% in 2021. There was an improvement to 27.65% in 2022, then a decrease to 18.41% in 2023, and a moderate increase to 22.52% in 2024. This indicates that Catalyst Pharmaceuticals Inc has been delivering varying returns to its equity shareholders over the years.
Overall, while Catalyst Pharmaceuticals Inc has exhibited profitability in terms of ROA and ROE, there have been fluctuations and inconsistencies in its performance, particularly in terms of ROA and Return on Total Capital. It would be important for the company to focus on maintaining and improving its profitability ratios to ensure sustainable growth and value creation for its stakeholders.