Carpenter Technology Corporation (CRS)
Profitability ratios
Return on sales
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 26.71% | 25.64% | 24.29% | 22.74% | 21.39% | 18.94% | 16.79% | 15.18% | 13.23% | 12.32% | 10.97% | 9.10% | 8.16% | 3.33% | 1.91% | 1.50% | 0.07% | 3.10% | 8.29% | 12.80% |
| Operating profit margin | 18.13% | 17.09% | 15.83% | 14.32% | 13.04% | 10.82% | 8.78% | 7.23% | 5.13% | 2.53% | 1.22% | -1.42% | -2.88% | -6.82% | -10.36% | -14.49% | -16.84% | -21.86% | -13.18% | -4.27% |
| Pretax margin | 16.24% | 14.45% | 10.78% | 9.21% | 7.66% | 6.11% | 6.61% | 4.95% | 2.84% | 1.24% | -0.14% | -2.32% | -3.44% | -8.71% | -12.61% | -17.02% | -20.18% | -24.62% | -15.08% | -5.85% |
| Net profit margin | 13.07% | 12.26% | 9.34% | 8.05% | 6.76% | 4.83% | 5.27% | 4.00% | 2.21% | 0.87% | -0.26% | -2.09% | -2.67% | -6.42% | -9.11% | -13.07% | -15.56% | -19.51% | -12.20% | -4.45% |
The analysis of Carpenter Technology Corporation's profitability ratios over the provided period reveals a significant improvement in operational and net profitability from a historically negative baseline to increasingly positive margins.
Starting with the gross profit margin, there has been a consistent upward trajectory. Initially, the margin was as low as 12.80% at the end of September 2020, declining sharply to a nadir of 0.07% by June 2021, reflecting challenging cost management or pricing pressures during that period. Subsequently, the gross margin exhibited a steady and substantial recovery, reaching 24.29% by the end of 2024 and continuing upward to 26.71% at mid-2025. This trend indicates effective cost control and improved pricing strategies, enhancing the company's core profitability.
Conversely, the operating profit margin was negative throughout the early period, with negative values until the end of December 2022, starting at -4.27% in September 2020. The persistent negative operating margins highlight operational challenges, possibly stemming from high operating costs, inefficient processes, or adverse market conditions. However, the margin has shown progressive improvement, turning positive in late 2022 and continuing upward to 18.13% by June 2025. This shift signifies enhancements in operational efficiency and better cost management, translating into increasingly profitable core business operations.
The pretax margin demonstrates a similar pattern to the operating margin, with negative figures in the initial years and gradual recovery. It moved from -5.85% in September 2020 to positive territory at 14.45% as of March 2025, reflecting a narrowing of pre-tax losses and eventual earnings before taxes.
Finally, the net profit margin underscores a sustained turnaround, transitioning from substantial losses (−4.45% in September 2020) to positive profitability. The net margin improved steadily, reaching 13.07% in June 2025. This progression indicates that the company not only improved gross and operating margins but also managed other expenses, interest, and taxes effectively to translate operational gains into bottom-line profit.
Overall, Carpenter Technology Corporation has exhibited a marked transformation from a period of losses to one of consistent profit growth across all profitability ratios. These trends suggest successful operational restructuring, cost reduction strategies, or favorable market conditions, thereby enhancing the company's profitability profile over the analyzed period.
Return on investment
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 14.96% | 14.85% | 13.69% | 12.43% | 10.94% | 9.26% | 7.57% | 6.30% | 4.28% | 1.93% | 0.86% | -0.95% | -1.80% | -3.58% | -5.60% | -7.39% | -8.36% | -10.83% | -7.47% | -2.66% |
| Return on assets (ROA) | 10.78% | 10.65% | 8.08% | 6.99% | 5.67% | 4.13% | 4.55% | 3.48% | 1.84% | 0.66% | -0.18% | -1.40% | -1.67% | -3.37% | -4.92% | -6.67% | -7.73% | -9.66% | -6.92% | -2.77% |
| Return on total capital | 19.54% | 26.76% | 24.76% | 22.53% | 20.02% | 18.84% | 15.84% | 13.10% | 9.14% | 6.13% | 3.45% | 0.05% | -1.50% | -8.05% | -11.82% | -16.12% | -18.43% | -23.96% | -16.87% | -5.72% |
| Return on equity (ROE) | 19.93% | 20.09% | 15.66% | 13.70% | 11.45% | 8.74% | 9.74% | 7.49% | 4.03% | 1.54% | -0.42% | -3.15% | -3.69% | -8.08% | -10.64% | -14.43% | -16.49% | -21.06% | -15.79% | -6.17% |
The profitability ratios for Carpenter Technology Corporation from September 2020 through June 2025 depict a noteworthy transition from negative to positive values, indicating substantial improvement in the company's ability to generate profits relative to its assets, capital, and equity.
Initially, the operating return on assets (Operating ROA) and return on assets (ROA) were markedly negative in late 2020 and early 2021, with Operating ROA at -2.66% and ROA at -2.77% on September 30, 2020. These figures worsened into the double-digits negative territory by March 2021, with Operating ROA reaching -10.83% and ROA hitting -9.66%. Subsequently, both ratios demonstrated a consistent upward trajectory, gradually approaching breakeven and turning positive by late 2022: Operating ROA at 0.86% and ROA at -0.18% at the end of 2022.
By the end of 2023, the ratios further improved, with Operating ROA at 7.57% and ROA at 4.55%. This positive trend continued into early 2024, reaching 9.26% and 4.13%, respectively, and persisted through mid-2025, attaining 14.85% for Operating ROA and 10.65% for ROA by March 2025. The ratios indicate a significant enhancement in operational efficiency and asset utilization, moving from losses to meaningful profitability over the period.
Profitability ratios based on total capital and shareholders’ equity also reflect similar progression. Return on total capital evolved from -5.72% (September 2020) to 26.76% by March 2025, showcasing a substantial recovery and growth in overall capital efficiency. The return on equity (ROE) followed a parallel trend, transitioning from negative figures of -6.17% in September 2020 to positive values of approximately 20% in March 2025, demonstrating improved profitability for shareholders.
The overall pattern suggests that Carpenter Technology Corporation experienced significant operational challenges during late 2020 and early 2021, but effective strategic adjustments and operational improvements led to a consistent and steady recovery in profitability ratios. This positive trend, particularly evident from late 2022 onward, indicates enhanced management effectiveness, better asset utilization, and increased shareholder value generation over the analyzed period.