CSW Industrials, Inc. (CSW)
Profitability ratios
Return on sales
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Gross profit margin | 44.78% | 44.24% | 41.99% | 40.86% | 44.08% |
| Operating profit margin | 20.64% | 20.07% | 18.35% | 15.55% | 14.19% |
| Pretax margin | 20.51% | 17.72% | 16.61% | 14.60% | 12.19% |
| Net profit margin | 15.56% | 12.82% | 12.72% | 10.60% | 9.57% |
The profitability ratios for CSW Industrials, Inc. over the period from March 2021 to March 2025 depict a generally positive trend, indicating improving profitability margins across multiple metrics.
The gross profit margin exhibits slight fluctuations but overall shows an upward trajectory, increasing from 44.08% in March 2021 to 44.78% in March 2025. This suggests that the company has maintained its ability to control direct production costs while generating revenue, with minor variation indicating stability in core operational efficiencies.
Operating profit margin demonstrates a consistent improvement over the years, rising from 14.19% in March 2021 to 20.64% in March 2025. This upward trend reflects enhanced operational efficiency, effective cost management, and potentially higher-value sales or pricing strategies that contribute to increased profitability before considering interest and taxes.
The pretax margin similarly shows progressive growth, from 12.19% in March 2021 to 20.51% in March 2025. The expanding pretax margin indicates that the company's operating income is growing at a faster rate than expenses outside of taxes, contributing to better overall profitability.
The net profit margin, which measures the percentage of revenue remaining as net income after all expenses, also exhibits a positive trend, rising from 9.57% in March 2021 to 15.56% in March 2025. This signifies that CSW Industrials has improved its ability to convert revenue into actual profit after accounting for all expenses, including taxes and interest.
Overall, the analyzed profitability ratios reflect a healthy and improving profitability profile for CSW Industrials, Inc., characterized by increased margins across gross, operating, pretax, and net profit measures. This trend suggests effective management, operational efficiencies, and potentially successful strategic initiatives that have contributed to sustained profitability growth over the examined period.
Return on investment
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 13.14% | 15.25% | 13.33% | 9.78% | 6.80% |
| Return on assets (ROA) | 9.91% | 9.74% | 9.24% | 6.67% | 4.58% |
| Return on total capital | 16.82% | 25.07% | 26.48% | 20.61% | 12.92% |
| Return on equity (ROE) | 12.74% | 16.51% | 18.34% | 14.15% | 9.73% |
The profitability ratios of CSW Industrials, Inc. over the period from March 2021 to March 2025 indicate a pattern of growth followed by a decline. The operating return on assets (Operating ROA) increased consistently from 6.80% in March 2021 to a peak of 15.25% in March 2024, before experiencing a decrease to 13.14% by March 2025. This suggests initial improvements in the company's core operating efficiency, but also points to a potential moderation in operational performance toward the most recent period.
Similarly, the return on assets (ROA) showed steady growth, rising from 4.58% in March 2021 to 9.74% in March 2024, before marginally increasing to 9.91% in March 2025. The upward trend indicates enhanced overall efficiency in asset utilization during the early period, although the recent stabilization suggests that gains in this area may be plateauing.
The return on total capital experienced a significant rise from 12.92% in March 2021 to a high of 26.48% in March 2023, driven possibly by increased profitability and effective capital deployment. However, this ratio declined to 25.07% in March 2024 and further decreased to 16.82% in March 2025, illustrating a notable reduction in the company's efficiency in generating returns from its overall capital base in the latest period.
Return on equity (ROE), which reflects net income relative to shareholders' equity, followed a similar trajectory—growing from 9.73% in March 2021 to a peak of 18.34% in March 2023. Subsequently, it decreased to 16.51% in March 2024 and further declined to 12.74% in March 2025. This downward trend indicates a diminishing ability of the company to generate profit relative to shareholders’ equity over the latter part of the analyzed period.
Overall, the profitability ratios for CSW Industrials, Inc. demonstrate a period of robust growth in profitability metrics up to 2023, followed by a downward correction in 2024 and 2025. These trends suggest recent challenges or changes in operational efficiency, asset management, or capital utilization that warrant further investigation to identify underlying causes.