Carpenter Technology Corporation (CRS)
Profitability ratios
Return on sales
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | |
|---|---|---|---|---|---|
| Gross profit margin | 26.71% | 21.17% | 13.23% | 8.16% | 0.07% |
| Operating profit margin | 18.26% | 11.71% | 5.22% | -0.66% | -12.14% |
| Pretax margin | 16.24% | 7.67% | 2.84% | -3.44% | -20.19% |
| Net profit margin | 13.07% | 6.76% | 2.21% | -2.67% | -15.56% |
The analysis of Carpenter Technology Corporation's profitability ratios over the period from June 2021 to June 2025 indicates a notable positive trend in overall profitability metrics.
Starting with the gross profit margin, there is a consistent and significant increase from a negligible 0.07% in June 2021 to 26.71% by June 2025. This progression reflects the company's improved ability to control cost of goods sold relative to sales, thereby increasing the gross profit earned on each dollar of revenue.
The operating profit margin demonstrates a substantial turnaround from negative figures of -12.14% in June 2021 and -0.66% in June 2022 to positive margins of 5.22% in June 2023, advancing further to 11.71% in June 2024, and reaching 18.26% in June 2025. This trend suggests operational efficiencies and enhanced management of operating expenses, resulting in higher earnings before interest and taxes relative to sales.
Similarly, the pre-tax margin exhibits an upward trajectory from -20.19% in June 2021 and -3.44% in June 2022 to a positive 2.84% in June 2023, advancing to 7.67% in June 2024, and 16.24% in June 2025. This indicates the company's improved ability to generate pre-tax income, likely driven by higher operating income and better cost controls.
The net profit margin follows a comparable upward trend, moving from a negative -15.56% in June 2021 and -2.67% in June 2022 to a modest 2.21% in June 2023. It continues to improve to 6.76% in June 2024, with a significant rise to 13.07% in June 2025. This progression signifies the company’s success in converting revenue into net income after accounting for all expenses, including taxes and interest.
Overall, the data indicates a robust transformation in Carpenter Technology Corporation's profitability profile, characterized by substantial improvements across all key margins. This trend reflects increased efficiency, better cost management, and a stronger ability to generate profits relative to sales, suggesting favorable operational and financial performance over the analyzed period.
Return on investment
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 15.07% | 9.82% | 4.36% | -0.42% | -6.03% |
| Return on assets (ROA) | 10.78% | 5.67% | 1.85% | -1.67% | -7.73% |
| Return on total capital | 27.33% | 16.12% | 9.07% | -1.34% | -19.02% |
| Return on equity (ROE) | 19.93% | 11.45% | 4.04% | -3.69% | -16.49% |
The profitability ratios of Carpenter Technology Corporation exhibit a notable trend of progressive improvement over the period from June 30, 2021, to June 30, 2025. The Operating Return on Assets (Operating ROA) demonstrates a significant turnaround, transitioning from a negative -6.03% in 2021 to a positive 4.36% in 2023, and further rising to 9.82% in 2024, reaching 15.07% by 2025. This progression indicates enhanced operational efficiency and the company's ability to generate earnings from its core business operations.
Similarly, the Return on Assets (ROA), which accounts for both operational efficiency and non-operating factors, follows an analogous upward trajectory—from -7.73% in 2021 to 1.85% in 2023, then advancing to 5.67% in 2024 and ultimately 10.78% in 2025. This suggests that overall asset utilization in generating net income is improving steadily over the period.
The Return on Total Capital reflects a comparable pattern of recovery and growth, moving from a negative -19.02% in 2021 to 9.07% in 2023. Continued growth to 16.12% in 2024 and 27.33% in 2025 indicates enhanced effectiveness in leveraging both debt and equity capital to generate profit, reflecting stronger financial performance and operational leverage.
The Return on Equity (ROE), a key indicator of shareholder profitability, shows an initial negative value of -16.49% in 2021, which narrows significantly to -3.69% in 2022. By 2023, the company turns profitable at 4.04%, and subsequent increases to 11.45% in 2024 and nearly 20% in 2025 demonstrate a consistent and substantial strengthening of earnings attributable to shareholders.
Overall, these ratios collectively indicate a substantial and positive transformation in Carpenter Technology Corporation’s profitability profile over the analyzed years, highlighting the company's recovery from prior losses and its ongoing improvement in operational and financial efficiency.