CorVel Corp (CRVL)
Profitability ratios
Return on sales
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Gross profit margin | 23.42% | 21.59% | 22.02% | 23.54% | 22.37% |
| Operating profit margin | 13.49% | 11.96% | 11.77% | 13.08% | 6.47% |
| Pretax margin | 13.49% | 11.96% | 11.77% | 13.08% | 10.71% |
| Net profit margin | 10.63% | 9.59% | 9.24% | 10.28% | 8.39% |
CorVel Corp's profitability ratios have shown some fluctuation over the past five years. The Gross Profit Margin, which represents the percentage of revenue left after deducting the cost of goods sold, has ranged from 21.59% to 23.54%, with the highest margin recorded in 2022. This indicates the efficiency of the company in managing its production costs.
The Operating Profit Margin, which reflects the company's ability to generate profits from its core operations, has varied between 11.77% and 13.49%. There was a significant improvement in 2022 compared to 2021, indicating better operational efficiency in that year.
The Pretax Margin, which shows the percentage of profit the company earns before paying taxes, has mirrored the Operating Profit Margin closely, ranging from 11.77% to 13.49%. This suggests that the company's profitability at the operational level is consistent with its overall profitability before tax implications.
The Net Profit Margin, representing the proportion of revenue that translates into net income, has fluctuated between 8.39% and 10.63%. The company has shown a consistent trend of improving its net profitability over the years, with the highest margin recorded in 2025. This indicates effective cost management and revenue generation that translates into higher bottom-line profits.
Overall, CorVel Corp's profitability ratios demonstrate varying levels of efficiency and profitability over the past five years, with some improvements seen in certain areas such as net profitability. Further analysis and comparison with industry standards can provide a more comprehensive understanding of the company's financial performance.
Return on investment
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 0.02% | 20.92% | 21.46% | 20.35% | 8.41% |
| Return on assets (ROA) | 0.02% | 16.77% | 16.85% | 15.99% | 10.91% |
| Return on total capital | 0.00% | 38.40% | 41.82% | 39.79% | 26.85% |
| Return on equity (ROE) | 0.03% | 30.79% | 32.83% | 31.27% | 21.03% |
CorVel Corp's profitability ratios have shown fluctuations over the years. The Operating Return on Assets (Operating ROA) has steadily increased from 8.41% in March 2021 to 20.92% in March 2024 before dropping significantly to 0.02% in March 2025. This indicates that the company's operating income generated from its assets improved over the years but experienced a sharp decline in the most recent period.
Similarly, the Return on Assets (ROA) also followed a similar trend, starting at 10.91% in March 2021 and reaching 16.77% in March 2024, before plummeting to 0.02% in March 2025. This ratio reflects the company's overall profitability relative to its total assets, with a noticeable decline in the latest year.
The Return on Total Capital peaked at 41.82% in March 2023, showcasing an efficient utilization of both debt and equity in generating profits. However, it dropped to 0.00% in March 2025, indicating a potential concern regarding the company's ability to generate returns on the total invested capital in the most recent period.
Lastly, the Return on Equity (ROE) displayed a similar pattern, increasing steadily from 21.03% in March 2021 to 30.79% in March 2024, before sharply declining to 0.03% in March 2025. ROE measures the returns generated for shareholders from their equity investment, and the significant drop in the latest year could raise questions regarding the company's profitability and shareholders' returns.
Overall, CorVel Corp's profitability ratios have shown mixed performance, with fluctuations in the recent periods indicating potential challenges in maintaining profitability and generating returns for both assets and equity holders. Further analysis and investigation into the company's operational efficiency and financial management may be required to understand these fluctuations better.