Embecta Corp (EMBC)
Profitability ratios
Return on sales
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | |
|---|---|---|---|
| Gross profit margin | 65.72% | 67.44% | 68.80% |
| Operating profit margin | 14.91% | 19.92% | 27.49% |
| Pretax margin | 3.95% | 9.51% | 22.78% |
| Net profit margin | 7.00% | 6.33% | 19.85% |
Embecta Corp's profitability ratios have shown a downward trend over the past three years. The gross profit margin decreased from 68.80% in 2022 to 65.72% in 2024, indicating a decline in efficiency in generating gross profit relative to sales. The operating profit margin also saw a significant decrease from 27.49% in 2022 to 14.91% in 2024, suggesting a reduction in the company's ability to control operating expenses and generate operating profit.
Furthermore, the pretax margin dropped from 22.78% in 2022 to 3.95% in 2024, indicating a decrease in profitability before considering taxes. The net profit margin also declined from 19.85% in 2022 to 7.00% in 2024, reflecting a decrease in the company's bottom line. This downward trend in profitability ratios may raise concerns about Embecta Corp's overall financial health and operational efficiency. Further analysis of the company's financial performance and strategies may be warranted to address the declining profitability.
Return on investment
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | |
|---|---|---|---|
| Operating return on assets (Operating ROA) | 12.98% | 18.24% | 28.50% |
| Return on assets (ROA) | 6.09% | 5.80% | 20.58% |
| Return on total capital | 20.17% | 28.68% | 43.81% |
| Return on equity (ROE) | — | — | — |
Embecta Corp's profitability ratios have shown fluctuations over the past three years.
1. Operating return on assets (Operating ROA) has decreased from 28.50% in 2022 to 12.98% in 2024, indicating a decline in the company's ability to generate operating profits from its assets.
2. Return on assets (ROA) has increased slightly from 5.80% in 2023 to 6.09% in 2024. This ratio shows the company's overall effectiveness in utilizing its assets to generate profits.
3. Return on total capital has shown a consistent downward trend, falling from 43.81% in 2022 to 20.17% in 2024. This indicates a decline in the company's profitability relative to its total capital employed.
4. Return on equity (ROE) data is missing for all three years, so it is unclear how effectively the company is generating profits from shareholders' equity.
Overall, Embecta Corp's profitability ratios suggest a mix of performance levels, with some ratios showing improvement while others experiencing a decline. Further analysis of the company's financial statements and business operations would provide a clearer picture of its financial health and performance.