Doximity Inc (DOCS)
Profitability ratios
Return on sales
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | |
|---|---|---|---|
| Gross profit margin | 89.34% | 87.24% | 88.42% |
| Operating profit margin | 34.47% | 29.86% | 33.05% |
| Pretax margin | 38.96% | 31.78% | 33.18% |
| Net profit margin | 31.04% | 26.92% | 45.05% |
Doximity Inc has shown consistent improvement in its profitability ratios over the past three years. The gross profit margin has increased steadily from 88.42% in 2022 to 89.34% in 2024, indicating the company's ability to effectively manage its costs of goods sold.
The operating profit margin also experienced a positive trend, rising from 33.05% in 2022 to 34.47% in 2024. This suggests that Doximity Inc has been able to control its operating expenses while generating higher revenue.
Furthermore, the pretax margin has shown significant improvement, increasing from 33.18% in 2022 to 38.96% in 2024. This indicates that the company has been able to manage its tax liabilities effectively and improve its overall profitability before accounting for taxes.
The net profit margin, which reflects the company's bottom-line profitability, also saw a positive trend, growing from 26.92% in 2022 to 31.04% in 2024. This signifies that Doximity Inc has been successful in generating higher profits relative to its revenue, after accounting for all expenses and taxes.
Overall, the improving trend in Doximity Inc's profitability ratios indicates efficient cost management, effective revenue generation, and overall enhanced profitability over the past three years.
Return on investment
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | |
|---|---|---|---|
| Operating return on assets (Operating ROA) | 15.18% | 11.00% | 11.45% |
| Return on assets (ROA) | 13.67% | 9.92% | 15.61% |
| Return on total capital | 18.18% | 12.95% | 12.92% |
| Return on equity (ROE) | 16.37% | 11.68% | 17.62% |
Doximity Inc's profitability ratios exhibit a consistent and positive trend over the three-year period ending March 31, 2024.
Starting with the Operating return on assets (Operating ROA), the company generated 15.18% return in 2024, showing an improvement from 11.00% in 2023 and 11.45% in 2022. This indicates that the company effectively utilized its assets to generate operating profits.
Moving on to the Return on assets (ROA), Doximity Inc achieved a return of 13.67% in 2024, up from 9.92% in 2023 and down from 15.61% in 2022. This ratio reflects the company's ability to generate profits relative to its total assets.
The Return on total capital ratio, which measures the return generated from both debt and equity capital employed, increased to 18.18% in 2024 compared to 12.95% in 2023 and 12.92% in 2022. This indicates that the company efficiently utilized its total capital to generate returns for its stakeholders.
Lastly, the Return on equity (ROE) ratio portrays the return generated on shareholders' equity. Doximity Inc recorded an ROE of 16.37% in 2024, an improvement from 11.68% in 2023 and a decline from 17.62% in 2022. This indicates the company's ability to generate profits from the shareholders' investments.
Overall, Doximity Inc's profitability ratios demonstrate a positive trajectory, with the company effectively utilizing its assets and capital to generate returns for its stakeholders. Despite some fluctuations, the consistent improvement in these ratios indicates the company's sound financial performance and efficient management of resources.