Digi International Inc (DGII)
Profitability ratios
Return on sales
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 58.93% | 56.69% | 55.71% | 54.00% | 51.55% |
| Operating profit margin | 11.34% | 11.26% | 9.84% | 3.41% | 4.05% |
| Pretax margin | 5.39% | 5.60% | 4.80% | 2.92% | 2.67% |
| Net profit margin | 5.31% | 5.57% | 4.99% | 3.36% | 3.01% |
Digi International Inc has demonstrated a consistent improvement in profitability ratios over the past five years. The gross profit margin has steadily increased from 51.55% in 2020 to 58.93% in 2024, indicating the company's ability to efficiently manage its cost of goods sold.
Similarly, the operating profit margin has shown a positive trend, reaching 11.34% in 2024 compared to 4.05% in 2020. This suggests that the company has been successful in controlling its operating expenses and improving operational efficiency.
The pretax margin has also exhibited a gradual growth, rising from 2.67% in 2020 to 5.39% in 2024. This indicates that Digi International Inc has been effectively managing its income tax expenses and increasing its profitability before taxes.
Moreover, the net profit margin has consistently improved over the years, reaching 5.31% in 2024 compared to 3.01% in 2020. This signifies that the company has been able to generate higher profits relative to its revenues after accounting for all expenses, including interest and taxes.
Overall, the upward trend in Digi International Inc's profitability ratios reflects its successful efforts in enhancing operational efficiency, controlling costs, and ultimately increasing its bottom line profitability.
Return on investment
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.90% | 6.00% | 4.48% | 1.70% | 2.14% |
| Return on assets (ROA) | 2.76% | 2.96% | 2.27% | 1.67% | 1.59% |
| Return on total capital | 5.43% | 6.88% | 5.29% | 2.00% | 2.57% |
| Return on equity (ROE) | 3.87% | 4.58% | 3.86% | 2.19% | 2.26% |
Digi International Inc's profitability ratios demonstrate a mixed performance over the past five years.
Operating return on assets (Operating ROA) has fluctuated between 1.70% in 2021 to a peak of 6.00% in 2023, indicating the company's ability to generate operating income relative to its total assets. However, in 2024, the Operating ROA decreased slightly to 5.90%.
Return on assets (ROA) has also varied, ranging from 1.59% in 2020 to 2.96% in 2023. The most recent ROA for 2024 stands at 2.76%, showing a relatively stable performance in utilizing assets to generate profits.
Return on total capital has shown a similar trend, with the highest at 6.88% in 2023 and the lowest at 2.00% in 2021. In 2024, the return on total capital decreased to 5.43%.
Return on equity (ROE) has increased gradually over the years, reaching 4.58% in 2023 before slightly declining to 3.87% in 2024. This metric reflects the company's profitability in relation to shareholder equity.
Overall, while Digi International Inc has demonstrated fluctuations in its profitability ratios over the years, the company has shown an improvement in certain metrics like ROE, indicating a relatively stable and consistent performance in generating profits relative to its assets and capital.