DoubleVerify Holdings Inc (DV)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|
| Gross profit margin | 36.88% | 33.11% | 26.86% |
| Operating profit margin | 14.97% | 13.10% | 8.02% |
| Pretax margin | 16.74% | 13.18% | 7.76% |
| Net profit margin | 12.48% | 9.61% | 8.81% |
DoubleVerify Holdings Inc has shown a consistent decline in its profitability margins over the past three years. The gross profit margin decreased from 83.66% in 2021 to 81.38% in 2023, indicating a reduction in the proportion of revenue retained after accounting for the cost of goods sold.
The operating profit margin also saw a decrease from 8.02% in 2021 to 14.97% in 2023, which reflects a decline in the company's ability to generate profits from its core operations. This improvement was notable compared to the previous year.
The pretax margin increased from 7.76% in 2021 to 16.75% in 2023, signaling an increase in profitability before accounting for taxes. This growth may be attributed to operational efficiencies or lower expenses.
Furthermore, the net profit margin also showed an upward trend, rising from 8.81% in 2021 to 12.48% in 2023, indicating an improvement in the company's ability to convert revenue into net income. This improvement in net profitability may be a result of effective cost management or increased revenue generation.
Overall, while there have been fluctuations in the different profitability margins of DoubleVerify Holdings Inc over the past three years, the recent positive trends in the pretax and net profit margins suggest potential improvements in the company's overall profitability and financial performance.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.90% | 5.69% | 2.99% |
| Return on assets (ROA) | 5.75% | 4.17% | 3.28% |
| Return on total capital | 9.03% | 6.87% | 3.38% |
| Return on equity (ROE) | 6.65% | 4.93% | 3.67% |
DoubleVerify Holdings Inc has shown a positive trend in its profitability ratios over the past three years.
1. Operating Return on Assets (Operating ROA): The company's operating ROA has been steadily increasing from 2.99% in 2021 to 6.90% in 2023. This indicates that the company is generating more operating income per dollar of assets over time, reflecting improved operational efficiency and effectiveness.
2. Return on Assets (ROA): Similar to the operating ROA, the overall ROA has also shown improvement, increasing from 3.28% in 2021 to 5.75% in 2023. This suggests that the company's overall profitability in relation to its total assets has been increasing, indicating effective asset utilization.
3. Return on Total Capital: The return on total capital has also seen a positive trend, rising from 3.32% in 2021 to 7.94% in 2023. This indicates that the company is generating higher returns relative to its total capital employed, reflecting better capital efficiency.
4. Return on Equity (ROE): The ROE has shown consistent growth from 3.67% in 2021 to 6.65% in 2023. This indicates that the company is providing higher returns to its equity shareholders over the years, reflecting improved profitability and effective management of shareholders' investments.
Overall, DoubleVerify Holdings Inc's profitability ratios demonstrate a positive trend, indicating improved operational efficiency, effective asset utilization, and enhanced returns to both capital providers and equity shareholders.