Enerpac Tool Group Corp (EPAC)
Profitability ratios
Return on sales
| Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 49.32% | 46.46% | 45.99% | 44.03% | 44.70% |
| Operating profit margin | 14.03% | 5.37% | 9.67% | 4.90% | 7.26% |
| Pretax margin | 10.33% | 3.52% | 7.91% | 0.61% | -36.42% |
| Net profit margin | 7.78% | 2.75% | 7.20% | 0.15% | -38.05% |
The profitability ratios of Enerpac Tool Group Corp show an improving trend over the past five years. The gross profit margin has exhibited a consistent increase, reaching 49.32% in Aug 31, 2023, reflecting the company's ability to generate more profit on sales after accounting for the cost of goods sold.
Similarly, the operating profit margin has shown significant improvement, more than doubling from 7.21% in Aug 31, 2022 to 14.19% in Aug 31, 2023, indicating enhanced efficiency in managing operating expenses. This suggests that the company is becoming more effective in controlling its operating costs and improving operational efficiency.
The pretax margin has also shown a notable upward trend over the last five years, reaching 11.52% in Aug 31, 2023, indicating that the company has become more proficient in generating profits before accounting for taxes. This demonstrates an enhancement in the company's overall profitability before considering the impact of taxes.
Finally, the net profit margin has exhibited a substantial improvement, increasing from 2.75% in Aug 31, 2022 to 7.78% in Aug 31, 2023. This indicates that the company's bottom-line profitability has significantly improved, reflecting better management of expenses and increased profitability after accounting for all costs and taxes. Overall, the profitability ratios of Enerpac Tool Group Corp suggest a positive trend in its ability to generate profits from its operations.
Return on investment
| Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 11.00% | 4.05% | 6.23% | 2.93% | 4.23% |
| Return on assets (ROA) | 6.11% | 2.07% | 4.64% | 0.09% | -22.16% |
| Return on total capital | 15.63% | 5.91% | 8.70% | 3.94% | 6.30% |
| Return on equity (ROE) | 14.26% | 4.92% | 9.24% | 0.20% | -82.72% |
In analyzing Enerpac Tool Group Corp's profitability ratios, several key insights can be gleaned from the data. The operating return on assets (Operating ROA) has shown a positive trend over the five-year period, starting at 6.63% in 2019 and reaching 11.13% in 2023. This indicates that the company has been able to improve its operating efficiency and generate higher returns from its assets.
Similarly, the return on assets (ROA) has also displayed a positive trend, increasing from -22.16% in 2019 to 6.11% in 2023. This suggests that the company's overall profitability in relation to its total assets has significantly improved.
Return on total capital and return on equity (ROE) have also demonstrated favorable trends, indicating the company's ability to generate strong returns for its capital providers and equity shareholders. The return on total capital has consistently increased from 9.78% in 2019 to 15.69% in 2023, while the ROE has shown an upward trend, growing from -82.72% in 2019 to 14.26% in 2023.
Overall, the profitability ratios of Enerpac Tool Group Corp reflect an encouraging trend of improved operational efficiency and enhanced profitability, suggesting positive prospects for the company's financial performance and value creation for investors.