DXC Technology Co (DXC)
Profitability ratios
Return on sales
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 3.29% | -7.49% | -7.94% | -8.17% | -8.22% | 7.47% | 7.79% | 7.15% | 7.03% | -3.48% | -5.39% | -7.54% | -9.33% | -23.85% | -21.66% | -33.40% | -30.78% | 8.26% | 27.97% | 59.33% |
| Operating profit margin | 7.43% | 7.59% | 7.86% | 7.92% | 8.02% | 7.94% | 7.97% | 8.22% | 8.45% | 8.18% | 7.76% | 7.16% | 6.22% | 6.20% | 7.16% | 8.33% | 10.53% | 12.65% | 14.10% | 15.31% |
| Pretax margin | 0.83% | -5.28% | -6.13% | -6.61% | -6.15% | 7.17% | 7.33% | 5.20% | 6.90% | -2.73% | 8.06% | 7.50% | 3.67% | -11.66% | -21.02% | -29.55% | -26.76% | -6.62% | -4.85% | 6.67% |
| Net profit margin | 0.67% | -3.35% | -4.00% | -4.47% | -3.94% | 4.84% | 4.93% | 3.42% | 4.41% | -3.67% | 2.32% | 1.92% | -0.84% | -15.67% | -20.44% | -29.90% | -27.43% | -7.98% | -6.04% | 5.70% |
DXC Technology Co's profitability ratios have shown some fluctuations over the past several quarters.
Gross profit margins have been volatile, with negative margins in some periods, indicating challenges in managing direct costs. However, there have been positive margins as well, albeit at lower levels compared to historical data.
Operating profit margins have been relatively stable, hovering around the 7-8% range, suggesting consistent management of operating expenses despite the fluctuations in gross profit margins.
Pretax margins have shown a wider range of variability, including negative margins in some periods. This indicates that DXC Technology Co has experienced challenges in generating profits before accounting for taxes and other expenses.
Net profit margins have also shown fluctuations, with negative margins in certain periods, reflecting challenges in generating profits after all expenses are considered.
Overall, while DXC Technology Co has maintained a relatively stable operating profit margin, the company needs to focus on improving gross profit margins and controlling expenses to enhance overall profitability.
Return on investment
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.32% | 7.07% | 7.51% | 7.34% | 7.30% | 6.46% | 6.91% | 6.98% | 6.83% | 6.83% | 6.50% | 5.96% | 5.00% | 4.76% | 5.27% | 5.73% | 7.93% | 8.57% | 9.65% | 9.57% |
| Return on assets (ROA) | 0.66% | -3.12% | -3.82% | -4.15% | -3.58% | 3.93% | 4.27% | 2.91% | 3.57% | -3.06% | 1.94% | 1.60% | -0.68% | -12.04% | -15.04% | -20.57% | -20.65% | -5.41% | -4.13% | 3.56% |
| Return on total capital | 6.22% | -6.41% | -8.62% | -9.86% | -9.29% | 14.68% | 15.50% | 11.66% | 14.56% | -2.40% | 17.94% | 17.61% | 10.86% | -15.67% | -28.78% | -35.33% | -36.09% | -5.93% | -3.81% | 9.03% |
| Return on equity (ROE) | 3.24% | -14.97% | -17.86% | -19.34% | -16.24% | 15.52% | 16.40% | 11.47% | 14.21% | -12.78% | 8.17% | 6.58% | -3.00% | -50.33% | -87.75% | -124.91% | -112.20% | -18.29% | -14.27% | 10.64% |
The profitability ratios of DXC Technology Co demonstrate fluctuations over the past several quarters. The Operating Return on Assets (Operating ROA) has shown a generally increasing trend from 5.00% in March 2021 to 7.32% in March 2024, indicating improved operational efficiency in generating profits from its assets.
On the other hand, Return on Assets (ROA) has been volatile, ranging from a low of -15.04% in September 2020 to a high of 3.93% in December 2022. This variability suggests challenges in effectively utilizing its assets to generate profitability.
Return on Total Capital has also displayed inconsistency, with fluctuations from a low of -36.09% in March 2020 to a high of 17.94% in September 2021. This ratio reflects the company's ability to generate returns for both equity and debt holders on its total invested capital.
Return on Equity (ROE) has shown a similar pattern of inconsistency, varying from a low of -124.91% in June 2020 to a high of 16.40% in December 2022. ROE indicates how effectively the company is utilizing shareholder equity to generate profits.
Overall, the profitability ratios of DXC Technology Co suggest a mix of strengths and weaknesses in the company's ability to generate profits from its operations, assets, and capital structure. Monitoring these ratios over time will be crucial in evaluating the company's financial performance and sustainability.