DocuSign Inc (DOCU)
Profitability ratios
Return on sales
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | |
|---|---|---|---|---|---|
| Gross profit margin | 79.12% | 79.46% | 78.89% | 78.10% | 78.32% |
| Operating profit margin | 6.72% | 1.15% | -3.51% | -2.95% | -12.50% |
| Pretax margin | 8.33% | 3.40% | -3.58% | -3.19% | -16.51% |
| Net profit margin | 35.87% | 2.69% | -3.88% | -3.33% | -17.50% |
DocuSign Inc has maintained a consistently high gross profit margin over the past five years, ranging between 78.10% to 79.46%. This indicates the company's ability to efficiently generate revenue after accounting for the cost of goods sold.
In terms of operating profit margin, there has been a significant improvement over the years. Starting from a negative margin of -12.50% in January 31, 2021, the company has managed to turn this around with positive margins of 1.15% in January 31, 2024, and 6.72% in January 31, 2025. This demonstrates DocuSign's enhanced operational efficiency and cost control measures.
The pretax margin also reflects a positive trend, transitioning from negative figures to 8.33% in January 31, 2025, indicating the company's ability to manage its expenses efficiently and generate higher earnings before taxes.
Notably, the most striking improvement is observed in the net profit margin, with a remarkable increase from -17.50% in January 31, 2021, to 35.87% in January 31, 2025. This substantial growth signifies DocuSign's success in controlling costs, increasing revenues, and ultimately translating more of its revenue into net income.
Overall, the profitability ratios of DocuSign Inc have shown significant improvement over the years, reflecting the company's efforts to enhance operational efficiency and profitability.
Return on investment
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.98% | 1.06% | -2.92% | -2.44% | -7.44% |
| Return on assets (ROA) | 26.61% | 2.49% | -3.23% | -2.75% | -10.41% |
| Return on total capital | 9.98% | 8.90% | -13.53% | -6.08% | -19.50% |
| Return on equity (ROE) | 53.32% | 6.55% | -15.79% | -25.40% | -74.68% |
DocuSign Inc's profitability ratios have shown a mixed performance over the past five years.
- Operating return on assets (Operating ROA): The company's operating ROA has improved from -7.44% in January 2021 to 4.98% in January 2025, indicating that DocuSign has been more efficient in generating profits from its assets over time.
- Return on assets (ROA): The ROA also reflects a positive trend, with a significant increase from -10.41% in January 2021 to 26.61% in January 2025. This suggests that DocuSign's overall asset utilization and profitability have substantially improved.
- Return on total capital: While the return on total capital was negative in the beginning at -19.50% in January 2021, it has shown steady improvement and reached 9.98% in January 2025. This indicates that the company has been able to generate positive returns on the total capital employed in its operations.
- Return on equity (ROE): DocuSign's ROE has seen a remarkable recovery from -74.68% in January 2021 to a strong positive position of 53.32% in January 2025. This signifies that the company has been successful in generating higher returns for its shareholders over the years.
Overall, DocuSign Inc's profitability ratios demonstrate a positive trajectory, with substantial improvements in operational efficiency, asset utilization, capital returns, and shareholder value creation over the past five years.