Catalent Inc (CTLT)
Profitability ratios
Return on sales
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 21.75% | 24.40% | 33.61% | 33.82% | 31.77% |
| Operating profit margin | -17.10% | -3.82% | 15.20% | 20.71% | 12.73% |
| Pretax margin | -23.44% | -8.02% | 12.06% | 17.88% | 8.40% |
| Net profit margin | -23.81% | -6.01% | 10.39% | 14.63% | 7.14% |
Catalent Inc's profitability ratios over the past five years show a mixed performance. The gross profit margin has been declining steadily from 33.82% in 2021 to 21.75% in 2024, indicating a decrease in the company's ability to generate profits after accounting for the cost of goods sold. This trend suggests potential challenges in maintaining pricing power or controlling production costs.
The operating profit margin has fluctuated significantly, with a negative margin of -17.10% in 2024, indicating that the company's operating expenses exceeded its revenue in that year. This contrasts with positive margins in previous years, suggesting potential inefficiencies in cost management or revenue generation for Catalent Inc.
The pretax margin also shows a declining trend, with a negative margin of -23.44% in 2024, indicating that the company's operating expenses and interest payments outweighed its pre-tax income. This downward trend from 17.88% in 2021 may raise concerns about the company's overall financial health and operational efficiency.
Similarly, the net profit margin has been decreasing over the years, reaching -23.81% in 2024, which is the lowest among the profitability ratios provided. This negative margin indicates that Catalent Inc's net income was insufficient to cover its expenses and taxes, resulting in a net loss for the company.
Overall, the declining trend in profitability ratios for Catalent Inc raises concerns about its ability to generate profits and manage costs effectively. Investors and analysts may need to further investigate the underlying reasons for these deteriorating profitability measures to assess the company's financial performance and sustainability.
Return on investment
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -7.68% | -1.51% | 6.95% | 9.09% | 5.07% |
| Return on assets (ROA) | -10.69% | -2.38% | 4.75% | 6.42% | 2.84% |
| Return on total capital | -20.78% | -3.54% | 15.29% | 21.15% | 13.59% |
| Return on equity (ROE) | -28.94% | -5.55% | 10.45% | 14.94% | 7.62% |
Catalent Inc's profitability ratios show some fluctuations over the past five years.
Operating return on assets (Operating ROA) has consistently declined from 5.07% in 2020 to -7.68% in 2024, indicating that the company's operating income generated from its assets has been decreasing.
Return on assets (ROA) also follows a downward trend, dropping from 2.84% in 2020 to -10.69% in 2024. This suggests that the company's overall profitability in relation to its total assets has weakened over the years.
Return on total capital reflects a sharp decrease in profitability, plummeting from 13.59% in 2020 to -20.78% in 2024. This indicates that the return generated from the total capital employed by the company has significantly deteriorated.
Return on equity (ROE) has also experienced a decline, falling from 7.62% in 2020 to -28.94% in 2024. This shows that shareholders' returns in relation to their equity stake in the company have diminished greatly.
Overall, the declining trend in Catalent Inc's profitability ratios signals potential challenges in generating profits from its assets, capital, and equity over the past five years, highlighting the need for the company to address its financial performance.