DXC Technology Co (DXC)
Profitability ratios
Return on sales
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Gross profit margin | 24.09% | 22.62% | 22.07% | 22.02% | 20.55% |
| Operating profit margin | 5.42% | 3.41% | -4.57% | 9.86% | -2.24% |
| Pretax margin | 4.89% | 0.80% | -6.13% | 7.02% | 3.69% |
| Net profit margin | 3.02% | 0.67% | -3.92% | 4.41% | -0.82% |
DXC Technology Co has shown a positive trend in its profitability ratios over the years. The gross profit margin has gradually increased from 20.55% in 2021 to 24.09% in 2025, indicating the company's ability to generate more profit on each dollar of sales.
The operating profit margin fluctuated, ranging from -2.24% in 2021 to 9.86% in 2022, then stabilizing around 3-5% in later years. This suggests that the company had some challenges in managing its operating expenses initially but managed to improve its operational efficiency in the following years.
Similarly, the pretax margin experienced fluctuations, from a low of -6.13% in 2023 to a high of 7.02% in 2022. The company's ability to generate profits before accounting for taxes improved overall, reflecting better cost management and revenue generation efforts.
The net profit margin also varied, with a loss of -0.82% in 2021 turning into a positive margin of 3.02% in 2025. This indicates that DXC Technology Co was able to control its expenses and improve its bottom line profitability over the years, resulting in more efficient management of its operations.
Overall, the upward trends in gross, operating, pretax, and net profit margins show that DXC Technology Co has made progress in enhancing its profitability and financial performance from 2021 to 2025.
Return on investment
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.29% | 3.36% | -4.16% | 7.96% | -1.80% |
| Return on assets (ROA) | 2.95% | 0.66% | -3.57% | 3.57% | -0.66% |
| Return on total capital | 27.50% | 14.48% | -19.59% | 26.62% | 19.12% |
| Return on equity (ROE) | 12.05% | 3.24% | -16.19% | 14.21% | -2.75% |
Based on the profitability ratios provided for DXC Technology Co, we can observe the following trends:
1. Operating Return on Assets (Operating ROA) - This ratio indicates the company's ability to generate profits from its operating activities relative to its total assets. From March 31, 2021, to March 31, 2025, DXC Technology Co experienced fluctuations in its Operating ROA, starting with a negative figure of -1.80% in 2021, improving to 7.96% in 2022, but then declining in subsequent years to -4.16% in 2023, climbing to 3.36% in 2024, and further improving to 5.29% in 2025. The positive percentages in 2022, 2024, and 2025 indicate that the company was able to efficiently utilize its assets to generate operating profits during those years.
2. Return on Assets (ROA) - This ratio measures how effectively the company is utilizing its assets to generate profits. DXC Technology Co's ROA also showed fluctuations over the same period. The company saw a negative ROA of -0.66% in 2021, followed by improvements in 2022 and 2025 with positive percentages of 3.57% and 2.95%, respectively. However, the company experienced negative ROA percentages in 2023 and 2024 (-3.57% and 0.66%, respectively), indicating challenges in generating profits relative to the total assets during those years.
3. Return on Total Capital - This ratio evaluates the company's ability to generate returns for all providers of capital. DXC Technology Co showed varying performance in this ratio, with a significant positive return on total capital of 26.62% in 2022 and 27.50% in 2025. However, the company experienced negative returns in 2021 and 2023, but managed to improve in 2024 with a positive 14.48%.
4. Return on Equity (ROE) - This ratio measures the company's ability to generate profit from shareholders' equity. DXC Technology Co displayed mixed performance in ROE, with negative figures in 2021 and 2023, a substantial increase to 14.21% in 2022, followed by a slight decline to 12.05% in 2025. The positive ROE in 2022 and 2025 indicates that the company generated profits efficiently relative to shareholders' equity during those years.
Overall, the profitability ratios of DXC Technology Co reflect fluctuations in performance over the period, with improvements in certain years but also facing challenges in others. Investors and financial analysts may further analyze the company's financial statements and operations to understand the reasons behind these fluctuations and make informed investment decisions.