Calavo Growers Inc (CVGW)
Profitability ratios
Return on sales
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 7.23% | 6.21% | 5.40% | 8.79% | 10.70% |
| Operating profit margin | 0.04% | 0.50% | -0.94% | 3.15% | 5.93% |
| Pretax margin | -0.25% | -0.25% | -0.10% | -1.75% | 4.14% |
| Net profit margin | -0.86% | -0.53% | -1.11% | -1.33% | 3.06% |
Calavo Growers, Inc's profitability ratios show a downward trend over the past five years. The gross profit margin, which measures the efficiency of the company's production and distribution, has declined from 10.71% in 2019 to 7.20% in 2023. This indicates a decrease in the company's ability to generate profit from its core business operations.
Similarly, the operating profit margin, reflecting the company's ability to control costs and expenses, has decreased from 5.77% in 2019 to 0.37% in 2023. This suggests that Calavo Growers, Inc is experiencing challenges in managing its operational costs effectively.
The pretax margin, which shows the company's ability to generate profit before taxes, has also shown a negative trend, declining from 4.14% in 2019 to -0.21% in 2023. This indicates that the company's profitability before tax has deteriorated over the years.
Furthermore, the net profit margin, which indicates the company's overall profitability after all expenses have been deducted, has decreased from 3.06% in 2019 to -0.86% in 2023. This suggests that Calavo Growers, Inc's net profitability has significantly declined over the five-year period.
In summary, Calavo Growers, Inc's profitability ratios indicate a concerning downward trend, with decreasing margins across the board, signaling potential challenges in generating and maintaining profitability.
Return on investment
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 0.11% | 1.55% | -2.24% | 7.49% | 18.20% |
| Return on assets (ROA) | -2.16% | -1.62% | -2.65% | -3.17% | 9.39% |
| Return on total capital | 0.04% | -0.57% | -0.12% | -6.51% | 17.38% |
| Return on equity (ROE) | -4.00% | -2.81% | -5.24% | -5.35% | 12.90% |
Based on the profitability ratios for Calavo Growers, Inc, the company's performance has shown significant fluctuations over the past five years.
The operating return on assets (Operating ROA) has varied, starting at a low of 0.17% in 2021, peaking at 17.67% in 2019, and then dropping to 0.92% in 2023. This fluctuation indicates potential inefficiencies in asset utilization and operational performance, impacting the company's ability to generate earnings from its assets.
The return on assets (ROA) has been negative in recent years, with the lowest figure reaching -3.17% in 2020. This indicates that the company has been experiencing periods of unprofitability in relation to its total assets, which can be a concern for investors and creditors.
The return on total capital, which represents the company's ability to generate earnings from its total capital, has also shown variability. While reaching a high of 18.90% in 2019, it dropped to -0.36% in 2021 before increasing to 3.30% in 2022 and then declining again to 1.05% in 2023. This fluctuation suggests that the company's capital utilization and profitability have been inconsistent.
The return on equity (ROE) has followed a similar pattern, indicating fluctuating profitability in relation to shareholders' equity. The lowest ROE was recorded at -5.35% in 2019, while the highest was 12.90% in the same year, demonstrating significant variation in the company's ability to provide returns to its shareholders.
Overall, these figures suggest that Calavo Growers, Inc has experienced inconsistency in its profitability and efficiency in utilizing assets and capital over the years. This may indicate underlying operational and financial challenges that the company needs to address to maintain sustainable profitability.