Cavco Industries Inc (CVCO)
Profitability ratios
Return on sales
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 23.79% | 25.90% | 25.12% | 21.57% | 21.71% |
| Operating profit margin | 9.97% | 13.84% | 12.44% | 8.02% | 8.00% |
| Pretax margin | 11.09% | 14.30% | 13.03% | 8.75% | 8.76% |
| Net profit margin | 8.79% | 11.23% | 12.15% | 6.92% | 7.07% |
Cavco Industries Inc's profitability ratios show varying trends over the past five years. The gross profit margin has generally been in the range of 21% to 26%, with a slight decrease in the most recent year to 23.79%. This indicates that the company is able to maintain a healthy level of profitability after accounting for the cost of goods sold.
The operating profit margin has fluctuated between 8% and 14%, with a noticeable decline in the most recent year to 9.97%. This suggests that Cavco Industries Inc's operating expenses may have increased relative to its revenues, impacting its ability to generate profits from its core business operations.
Similarly, the pretax margin and net profit margin have also shown variations over the years. The pretax margin peaked at 14.30% in 2023 but dropped to 11.09% in 2024, indicating potential challenges in managing the company's pre-tax earnings relative to its total revenue. The net profit margin, reflecting the company's bottom-line profitability, has ranged from 7% to 12%, with a decrease to 8.79% in the most recent year.
Overall, while Cavco Industries Inc has demonstrated a reasonable level of profitability in recent years, there are indications of potential challenges in managing operating expenses and maintaining profit margins. It would be important for the company to closely monitor its cost structure and revenue generation to ensure sustainable profitability in the future.
Return on investment
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 13.22% | 22.68% | 17.53% | 9.33% | 10.48% |
| Return on assets (ROA) | 11.65% | 18.39% | 17.12% | 8.05% | 9.26% |
| Return on total capital | 19.43% | 31.49% | 25.61% | 14.07% | 15.23% |
| Return on equity (ROE) | 15.27% | 24.64% | 23.81% | 11.21% | 12.35% |
Cavco Industries Inc's profitability ratios have shown a fluctuating trend over the past five years.
- Operating return on assets (Operating ROA) has ranged from 9.33% in 2021 to 22.68% in 2023, with a current value of 13.22% in 2024. This ratio indicates that the company generated 13.22 cents of operating income for every dollar of assets in 2024.
- Return on assets (ROA) has varied between 8.05% in 2021 and 18.39% in 2023, with a recent figure of 11.65% in 2024. ROA represents the overall efficiency of the company in generating profit from its assets.
- Return on total capital has ranged from 14.07% in 2021 to 31.49% in 2023, with a current value of 19.43% in 2024. This ratio measures the return the company is earning on all invested capital, both equity and debt.
- Return on equity (ROE) has fluctuated between 11.21% in 2021 and 24.64% in 2023, with a recent value of 15.27% in 2024. ROE reflects how well the company is using shareholders' equity to generate profit.
Overall, Cavco Industries Inc's profitability ratios indicate varying levels of efficiency and effectiveness in utilizing its assets and capital to generate profits over the years, with a general positive trend in recent years, but showing some fluctuations. It is essential for the company to continue monitoring and improving these ratios to ensure sustainable and profitable growth.