Doximity Inc (DOCS)
Profitability ratios
Return on sales
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Gross profit margin | 90.20% | 89.34% | 87.24% | 88.42% | 84.92% |
| Operating profit margin | 39.94% | 34.47% | 29.86% | 33.05% | 25.76% |
| Pretax margin | 46.21% | 38.96% | 31.78% | 33.18% | 27.92% |
| Net profit margin | 39.13% | 31.04% | 26.92% | 45.05% | 24.27% |
Doximity Inc's profitability ratios demonstrate a positive trend over the years. The Gross Profit Margin has shown consistent improvement, increasing from 84.92% in March 2021 to 90.20% in March 2025. This indicates the company's ability to efficiently manage production costs and generate a higher proportion of revenue as gross profit.
The Operating Profit Margin also depicts significant growth, rising from 25.76% in March 2021 to 39.94% in March 2025. This demonstrates the company's effectiveness in controlling operating expenses and generating profits from core business operations.
Similarly, the Pretax Margin has exhibited a robust upward trajectory, climbing from 27.92% in March 2021 to 46.21% in March 2025. This indicates the company's ability to generate higher earnings before taxes relative to its total revenue.
Moreover, the Net Profit Margin has shown improvement over the years, increasing from 24.27% in March 2021 to 39.13% in March 2025. This suggests that Doximity Inc has been able to enhance its bottom line profitability by effectively managing its tax obligations and other non-operating expenses.
Overall, the positive trend in Doximity Inc's profitability ratios signals the company's efficiency in cost management and revenue generation, indicating a strong financial performance and potential for continued growth and success.
Return on investment
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | — | 15.18% | 11.00% | 11.45% | 21.18% |
| Return on assets (ROA) | — | 13.67% | 9.92% | 15.61% | 19.95% |
| Return on total capital | — | 18.61% | 11.68% | 12.22% | 86.55% |
| Return on equity (ROE) | — | 16.37% | 11.68% | 17.62% | 75.23% |
The profitability ratios of Doximity Inc show varying levels of performance over the years analyzed.
1. Operating return on assets (Operating ROA) decreased from 21.18% as of March 31, 2021, to 11.45% as of March 31, 2022, indicating a decline in the company's ability to generate profits from its operational assets. Subsequently, it further decreased to 11.00% as of March 31, 2023. However, there was an improvement to 15.18% as of March 31, 2024.
2. Return on assets (ROA) also displayed a downward trend, reducing from 19.95% in March 2021 to 15.61% in March 2022 and further declining to 9.92% in March 2023. This ratio improved slightly to 13.67% as of March 31, 2024.
3. Return on total capital declined significantly from 86.55% as of March 31, 2021, to 12.22% as of March 31, 2022, suggesting a substantial decrease in the company's ability to generate returns on its total invested capital. There was a slight improvement to 11.68% as of March 31, 2023, followed by a further increase to 18.61% as of March 31, 2024.
4. Return on equity (ROE) also exhibited a notable decrease from 75.23% as of March 31, 2021, to 17.62% as of March 31, 2022, implying a reduction in the profitability of shareholder investments. The ROE remained at 11.68% as of March 31, 2023, before improving slightly to 16.37% as of March 31, 2024.
Overall, Doximity Inc's profitability ratios reflect fluctuations over the years, indicating varying levels of efficiency in generating profits for both operational assets and total capital. It is essential for the company to monitor these ratios closely to ensure sustainable and consistent profitability in the future.