Corsair Gaming Inc (CRSR)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 24.89% | 24.68% | 21.57% | 26.99% | 27.34% |
| Operating profit margin | -3.79% | 0.66% | -3.98% | 7.24% | 9.30% |
| Pretax margin | -4.68% | -0.24% | -4.64% | 6.02% | 7.17% |
| Net profit margin | -6.47% | -0.18% | -3.92% | 5.30% | 6.06% |
Corsair Gaming Inc's profitability ratios have shown fluctuations over the years as depicted in the data provided.
1. Gross Profit Margin:
- The gross profit margin decreased from 27.34% in December 2020 to 26.99% in December 2021 and then further decreased to 21.57% in December 2022. It slightly improved in the following years but remained below the initial level.
2. Operating Profit Margin:
- The operating profit margin also experienced a decrease from 9.30% in December 2020 to 7.24% in December 2021. However, it turned negative in the subsequent years, indicating that the company's operating expenses surpassed its operating income.
3. Pretax Margin:
- The pretax margin followed a similar trend, declining from 7.17% in December 2020 to -4.64% in December 2022, signifying that the company was incurring more expenses than generating pre-tax profits.
4. Net Profit Margin:
- The net profit margin, representing the company's bottom line, decreased from 6.06% in December 2020 to -6.47% in December 2024. This indicates that Corsair Gaming Inc experienced a significant decline in profitability over the years, with net profits turning negative in the last year.
Overall, the declining trend in profitability margins, especially the negative values in operating, pretax, and net profit margins in the later years, raises concerns about Corsair Gaming Inc's ability to generate profits and effectively manage its expenses to ensure sustainable growth and financial stability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -4.04% | 0.71% | -4.22% | 10.31% | 12.05% |
| Return on assets (ROA) | -6.89% | -0.19% | -4.16% | 7.55% | 7.85% |
| Return on total capital | -8.02% | 2.09% | -8.75% | 24.27% | 36.21% |
| Return on equity (ROE) | -14.10% | -0.39% | -8.65% | 17.77% | 23.60% |
Corsair Gaming Inc.'s profitability ratios show fluctuating trends over the years:
1. Operating return on assets (Operating ROA):
- The Operating ROA declined from 12.05% in 2020 to 10.31% in 2021, indicating a slight decrease in the company's ability to generate profits from its operational assets.
- However, there was a significant decline to -4.22% in 2022, suggesting a negative impact on profitability due to operational inefficiencies or other factors.
- The ratio improved slightly to 0.71% in 2023 but decreased again to -4.04% in 2024, indicating ongoing challenges in generating profits from operational assets.
2. Return on assets (ROA):
- The ROA remained relatively stable around 7-8% from 2020 to 2021.
- However, there was a notable decline to -4.16% in 2022, indicating that the company experienced a period of negative profitability in relation to its total assets.
- The ROA further deteriorated to -0.19% in 2023 and significantly declined to -6.89% in 2024, suggesting continued challenges in generating profits from overall assets.
3. Return on total capital:
- The Return on total capital decreased from 36.21% in 2020 to 24.27% in 2021, indicating a lower return on the total capital employed by the company.
- There was a significant decline to -8.75% in 2022, pointing towards a negative return on the company's total capital.
- The ratio improved slightly to 2.09% in 2023 but decreased again to -8.02% in 2024, indicating ongoing difficulties in generating returns on the total capital invested.
4. Return on equity (ROE):
- The ROE declined from 23.60% in 2020 to 17.77% in 2021, highlighting a decrease in the profitability for the company's equity shareholders.
- There was a significant decline to -8.65% in 2022, suggesting a negative impact on shareholder returns.
- The ratio further decreased to -0.39% in 2023 and significantly declined to -14.10% in 2024, indicating ongoing challenges in generating profits for equity shareholders.
Overall, the declining trends in these profitability ratios suggest that Corsair Gaming Inc. faced challenges in maintaining profitability and generating returns for its operational assets, total capital, and equity investors over the analyzed period.