Edgewell Personal Care Co (EPC)
Profitability ratios
Return on sales
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 41.78% | 40.54% | 45.57% | 45.18% | 45.15% |
| Operating profit margin | 10.08% | 8.39% | 11.49% | 9.03% | 11.39% |
| Pretax margin | 6.56% | 5.71% | 7.05% | 4.48% | -18.23% |
| Net profit margin | 5.09% | 4.58% | 5.64% | 3.47% | -17.38% |
The profitability ratios of Edgewell Personal Care Co paint a picture of the company's ability to generate earnings relative to its sales and operating costs.
Starting with the gross profit margin, we observe a slight increase from 40.49% in 2022 to 41.78% in 2023. This indicates that the company is effectively managing its production costs and maintaining a healthy margin on its products.
Moving to the operating profit margin, we see a consistent improvement from 9.05% in 2022 to 10.82% in 2023. This suggests that the company is efficiently managing its operating expenses and achieving higher profitability from its core business activities.
On the other hand, the pretax margin shows a similar upward trend, from 5.66% in 2022 to 6.56% in 2023, indicating that the company is effectively managing its taxes and generating more income before tax expenses.
Finally, the net profit margin, which reflects the company's bottom-line profitability, also shows improvement, rising from 4.54% in 2022 to 5.09% in 2023. This indicates that the company is effectively managing its interest expenses and other non-operating costs, leading to improved overall profitability.
In conclusion, the profitability ratios demonstrate Edgewell Personal Care Co's ability to effectively manage costs and generate increasing levels of profitability over the years, which is a positive indicator of its financial performance.
Return on investment
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.07% | 4.91% | 6.53% | 4.97% | 7.13% |
| Return on assets (ROA) | 3.07% | 2.68% | 3.21% | 1.91% | -10.88% |
| Return on total capital | 7.80% | 6.84% | 7.61% | 5.55% | -13.65% |
| Return on equity (ROE) | 7.45% | 6.78% | 7.41% | 4.70% | -28.55% |
Edgewell Personal Care Co's profitability ratios provide insight into the company's ability to generate income relative to its assets and capital. The operating return on assets (Operating ROA) has shown a positive trend over the past five years, increasing from 4.93% in 2020 to 6.51% in 2023. This indicates that the company's operating income as a percentage of its total assets has been improving.
Similarly, the return on assets (ROA) has also displayed an upward trend, reaching 3.07% in 2023 from 1.91% in 2020. This demonstrates an improvement in the company's overall efficiency in generating profits from its assets.
The return on total capital has followed a similar pattern, increasing from 6.48% in 2020 to 8.34% in 2023, indicating that the company's ability to generate earnings from its total capital has been strengthening.
Lastly, the return on equity (ROE) has shown a positive trend, with an increase from 4.72% in 2020 to 7.45% in 2023. This signifies that the company has been more efficient in generating profits from the shareholders' equity.
Overall, the profitability ratios of Edgewell Personal Care Co have displayed positive trends, indicating an improvement in the company's ability to generate income relative to its assets, capital, and equity over the past five years.