EPAM Systems Inc (EPAM)
Profitability ratios
Return on sales
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 29.66% | 29.30% | 28.41% | 29.33% | 30.08% | 30.92% | 31.31% | 30.89% | 31.88% | 32.33% | 32.60% | 33.83% | 33.91% | 34.14% | 34.42% | 34.45% | 34.85% | 34.72% | 34.88% | 35.34% |
| Operating profit margin | 11.45% | 11.37% | 10.05% | 10.55% | 10.69% | 11.53% | 12.72% | 11.60% | 11.88% | 12.09% | 11.92% | 13.60% | 14.43% | 14.48% | 14.51% | 14.31% | 14.26% | 13.71% | 13.42% | 13.44% |
| Pretax margin | 12.36% | 12.39% | 11.18% | 11.47% | 11.44% | 12.81% | 13.84% | 10.86% | 10.51% | 9.91% | 9.19% | 12.65% | 14.19% | 14.09% | 14.62% | 14.23% | 14.23% | 14.06% | 13.47% | 13.68% |
| Net profit margin | 9.61% | 9.68% | 8.86% | 9.28% | 8.89% | 9.96% | 11.02% | 8.88% | 8.69% | 8.65% | 8.21% | 11.14% | 12.82% | 12.59% | 13.12% | 12.57% | 12.30% | 12.31% | 11.73% | 11.79% |
EPAM Systems Inc's profitability ratios have shown a declining trend over the past few years. The gross profit margin, which measures the percentage of revenue remaining after subtracting the cost of goods sold, has decreased from 35.34% as of March 31, 2020 to 29.66% as of December 31, 2024.
Similarly, the operating profit margin, which indicates the company's operating efficiency, has also declined from 13.44% in March 31, 2020 to 11.45% in December 31, 2024. This suggests that EPAM Systems Inc's ability to generate profits from its core business operations has weakened over the years.
The pretax margin, which shows the company's profitability before taxes, has fluctuated but generally trended downwards from 13.68% in March 31, 2020 to 12.36% in December 31, 2024. This indicates that the company's overall profitability has been under pressure.
Lastly, the net profit margin, which reflects the company's profitability after all expenses have been deducted, has also seen a decrease from 11.79% in March 31, 2020 to 9.61% in December 31, 2024. This indicates that EPAM Systems Inc's bottom line profitability has been impacted.
Overall, the declining profitability ratios of EPAM Systems Inc suggest potential challenges in maintaining and improving its profit margins, which may require further analysis and strategic actions to address.
Return on investment
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 11.40% | 11.83% | 11.00% | 11.21% | 11.52% | 13.20% | 15.03% | 13.86% | 14.29% | 15.21% | 14.93% | 16.09% | 15.39% | 15.07% | 14.89% | 14.35% | 13.94% | 13.78% | 14.07% | 14.09% |
| Return on assets (ROA) | 9.57% | 10.07% | 9.70% | 9.85% | 9.58% | 11.40% | 13.03% | 10.61% | 10.46% | 10.89% | 10.28% | 13.18% | 13.67% | 13.11% | 13.46% | 12.61% | 12.02% | 12.37% | 12.29% | 12.37% |
| Return on total capital | 15.08% | 15.01% | 14.37% | 14.62% | 14.95% | 18.12% | 19.79% | 19.66% | 19.54% | 19.77% | 18.85% | 19.11% | 20.55% | 19.76% | 19.76% | 19.67% | 18.76% | 18.56% | 18.33% | 19.16% |
| Return on equity (ROE) | 12.52% | 12.63% | 12.06% | 12.40% | 12.02% | 14.38% | 16.35% | 13.81% | 13.97% | 14.75% | 13.97% | 18.12% | 19.37% | 18.17% | 18.02% | 16.99% | 16.50% | 16.99% | 16.75% | 17.35% |
EPAM Systems Inc's profitability ratios show fluctuations over the given time period.
1. Operating Return on Assets (Operating ROA): The Operating ROA ranged from 13.78% to 16.09%. The ratio indicates the company's ability to generate operating profits from its assets, and it shows an increasing trend from 2020 to 2022 before experiencing a slight decline in 2023 and 2024.
2. Return on Assets (ROA): The ROA fluctuated between 9.58% and 13.67%. This ratio measures EPAM's overall efficiency in utilizing its assets to generate profits. There was an upward trend until 2021, followed by a decline in subsequent years.
3. Return on Total Capital: This ratio varied from 14.62% to 20.55%. It reflects the company's ability to generate returns for both equity and debt holders. The ratio was relatively stable until 2023 when it experienced a significant decrease.
4. Return on Equity (ROE): The ROE ranged from 12.02% to 19.37%. This ratio shows the return generated on shareholders' equity and indicates the company's profitability from the perspective of its owners. The ratio exhibited a similar trend to ROA, with fluctuations across the years.
In general, while EPAM Systems Inc maintained relatively healthy profitability ratios throughout the period, there were fluctuations in performance, especially in the later years. Further analysis may be needed to understand the underlying factors driving these changes in profitability.