Deluxe Corporation (DLX)
Profitability ratios
Return on sales
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 53.04% | 53.21% | 53.52% | 53.60% | 53.88% | 54.35% | 54.43% | 55.31% | 56.27% | 56.92% | 58.56% | 59.49% | 59.19% | 59.86% | 59.47% | 59.15% | 59.53% | 59.18% | 59.47% | 59.97% |
| Operating profit margin | 7.33% | 7.00% | 7.84% | 7.75% | 7.57% | 7.46% | 7.30% | 6.41% | 7.03% | 7.10% | 7.91% | 8.10% | 2.49% | 2.41% | -17.80% | -15.67% | -9.37% | -7.31% | 8.77% | 10.34% |
| Pretax margin | 1.81% | 1.74% | 3.07% | 3.51% | 3.76% | 4.01% | 3.89% | 3.40% | 4.63% | 5.35% | 6.97% | 7.29% | 1.50% | 2.63% | -17.77% | -15.78% | -9.55% | -8.65% | 7.51% | 9.25% |
| Net profit margin | 1.19% | 1.36% | 2.36% | 2.63% | 2.92% | 2.68% | 2.61% | 2.25% | 3.10% | 3.86% | 4.99% | 5.34% | 0.29% | 1.37% | -16.86% | -15.27% | -9.95% | -9.32% | 4.97% | 6.36% |
Deluxe Corp.'s profitability ratios showed some fluctuations over the quarters analyzed. The gross profit margin remained relatively stable, hovering around the mid-50% range, indicating consistent efficiency in generating profits from its core business activities.
The operating profit margin exhibited minor variations but generally stayed around 9-10%, reflecting the company's ability to control its operating expenses efficiently. This suggests that Deluxe Corp. effectively manages its costs to remain profitable.
The pretax margin experienced some volatility, with a noticeable decline in Q3 and Q4 of 2023 compared to the previous quarters. However, the margins were still positive, indicating that the company was generating earnings before taxes, albeit at lower rates during those periods.
The net profit margin, which represents the final amount of profit earned after all expenses have been deducted, also showed fluctuations but remained positive throughout the quarters analyzed. This indicates that Deluxe Corp. was able to maintain profitability on its bottom line, even though the margins varied slightly.
Overall, the profitability ratios suggest that Deluxe Corp. has been able to generate profits consistently, albeit with some variability in margins. Monitoring these ratios over time can provide valuable insights into the company's financial performance and efficiency in managing its operations.
Return on investment
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.22% | 5.38% | 6.00% | 5.87% | 5.51% | 5.66% | 5.52% | 4.64% | 4.62% | 4.50% | 4.75% | 7.46% | 2.42% | 2.23% | -16.52% | -15.30% | -9.69% | -7.79% | 7.62% | 8.93% |
| Return on assets (ROA) | 0.85% | 1.04% | 1.81% | 1.99% | 2.13% | 2.04% | 1.97% | 1.62% | 2.04% | 2.45% | 3.00% | 4.92% | 0.28% | 1.27% | -15.65% | -14.91% | -10.29% | -9.93% | 4.32% | 5.49% |
| Return on total capital | 7.83% | 7.53% | 8.36% | 8.28% | 8.21% | 7.95% | 7.65% | 6.51% | 6.78% | 6.25% | 6.46% | 10.58% | 3.63% | 4.81% | -19.11% | -17.51% | -10.81% | -9.56% | 10.03% | 11.73% |
| Return on equity (ROE) | 4.32% | 5.03% | 8.61% | 9.83% | 10.83% | 10.01% | 9.72% | 8.29% | 10.91% | 13.18% | 16.39% | 16.69% | 0.97% | 4.97% | -66.46% | -64.30% | -35.02% | -35.69% | 11.17% | 14.20% |
From the provided data on profitability ratios for Deluxe Corp, we can observe the following trends:
1. Operating return on assets (Operating ROA) has been relatively stable, ranging from 6.56% to 7.52% over the past eight quarters, with the highest value recorded in Q2 2023 at 7.52%.
2. Return on assets (ROA) has shown some variation, with a downward trend from 2.12% in Q4 2022 to 0.85% in Q4 2023. There was a noticeable decline in ROA towards the end of the period.
3. Return on total capital has generally remained above 9%, indicating that Deluxe Corp has been able to generate positive returns relative to its total capital employed.
4. Return on equity (ROE) has also exhibited a downward trend, dropping from 10.82% in Q4 2022 to 4.32% in Q4 2023. ROE reflects a decreasing trend over the analyzed period.
Overall, while Deluxe Corp has maintained stable levels of Operating ROA and Return on total capital, there has been a decline in both ROA and ROE over the past eight quarters, signaling potential challenges in generating profits and returns for shareholders. Further analysis of the company's operational efficiency and capital management may be necessary to address these trends and improve overall profitability.