DXC Technology Co (DXC)
Profitability ratios
Return on sales
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 3.29% | -8.22% | 7.03% | -9.33% | -30.78% |
| Operating profit margin | 7.43% | 8.02% | 8.45% | 6.22% | 10.53% |
| Pretax margin | 0.83% | -6.15% | 6.90% | 3.67% | -26.76% |
| Net profit margin | 0.67% | -3.94% | 4.41% | -0.84% | -27.43% |
The profitability ratios of DXC Technology Co have shown varying trends over the past five years. In terms of gross profit margin, there has been fluctuation, with a significant improvement in 2022 followed by a decline in 2023 and a slight increase in 2024. The operating profit margin has also fluctuated, showing a peak in 2022 and some inconsistency in subsequent years. The pretax margin has similarly fluctuated, with a notable positive spike in 2022 but overall inconsistency in other years. The net profit margin has shown a similar trend of fluctuation, with improvements in 2022 and 2024, but negative margins in 2020 and 2021. Overall, the company's profitability ratios exhibit inconsistency and volatility, suggesting challenges and fluctuations in its operational efficiency and cost management. Further analysis and investigation into the underlying factors driving these fluctuations would be necessary to assess the sustainability of DXC Technology Co's profitability performance.
Return on investment
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.32% | 7.30% | 6.83% | 5.00% | 7.93% |
| Return on assets (ROA) | 0.66% | -3.58% | 3.57% | -0.68% | -20.65% |
| Return on total capital | 6.22% | -9.29% | 14.56% | 10.86% | -36.09% |
| Return on equity (ROE) | 3.24% | -16.24% | 14.21% | -3.00% | -112.20% |
Based on the profitability ratios of DXC Technology Co over the past five years, we observe the following trends:
1. Operating return on assets (Operating ROA) has remained relatively stable around 7% over the past three years, indicating that the company has been able to generate operating profits efficiently relative to its asset base.
2. Return on assets (ROA) has shown significant variability, ranging from negative values to positive values. This suggests that the company's overall profitability has been inconsistent, with a particularly low ROA in 2020 and 2021.
3. Return on total capital has also displayed significant fluctuations, with negative values in 2020 and a substantial improvement in 2022. This ratio highlights the company's ability to generate returns for both equity and debt holders.
4. Return on equity (ROE) has similarly varied widely, with negative values in some years, indicating a relatively poor return to shareholders. However, there was a significant improvement in 2022, reaching 14.21%, which suggests better profitability from shareholders' perspective.
In summary, DXC Technology Co has shown mixed performance in terms of profitability over the past five years, with some years demonstrating strong profitability metrics while others indicating challenges. It is crucial for investors to closely monitor the company's future financial performance to assess its sustainability and growth prospects.