Ethan Allen Interiors Inc (ETD)
Profitability ratios
Return on sales
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 60.83% | 60.72% | 59.28% | 57.40% | 54.78% |
| Operating profit margin | 12.07% | 17.34% | 16.91% | 11.29% | 2.48% |
| Pretax margin | 13.22% | 17.83% | 16.89% | 11.16% | 2.41% |
| Net profit margin | 9.88% | 13.37% | 12.63% | 8.76% | 1.51% |
Ethan Allen Interiors Inc has shown a consistent improvement in its profitability ratios over the past five years. The gross profit margin has been steadily increasing, reaching 60.83% in 2024 from 54.78% in 2020. This indicates the company's ability to efficiently manage its production costs and generate profits from its core operations.
The operating profit margin has also shown a positive trend, increasing from 2.48% in 2020 to 12.07% in 2024. This signifies that the company has been effectively controlling its operating expenses and improving its operational efficiency.
Similarly, the pretax margin and net profit margin have both experienced significant growth over the years. The pretax margin increased from 2.41% in 2020 to 13.22% in 2024, while the net profit margin rose from 1.51% in 2020 to 9.88% in 2024. These improvements reflect the company's ability to manage its overall costs and generate higher profits for its shareholders.
Overall, the profitability ratios of Ethan Allen Interiors Inc demonstrate the company's strong financial performance and its ability to enhance profitability over time.
Return on investment
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 10.47% | 18.40% | 19.20% | 11.31% | 2.35% |
| Return on assets (ROA) | 8.57% | 14.19% | 14.35% | 8.78% | 1.43% |
| Return on total capital | 19.22% | 29.98% | 33.96% | 21.88% | 3.94% |
| Return on equity (ROE) | 13.21% | 22.46% | 25.35% | 17.07% | 2.71% |
Ethan Allen Interiors Inc has shown consistent improvement in profitability ratios over the past five years. The operating return on assets (Operating ROA) has fluctuated, ranging from 2.35% in 2020 to 19.20% in 2022, and was reported at 10.47% in 2024. This indicates the company's ability to generate operating income relative to its total assets has been relatively stable over time, with a notable peak in 2022.
The overall return on assets (ROA) has followed a similar trend, showing steady improvement from 1.43% in 2020 to 14.35% in 2022, and then declined slightly to 8.57% in 2024. This demonstrates the efficiency of the company in generating profits from its total assets, with a significant increase in profitability achieved over the years.
Return on total capital has also exhibited a positive trajectory, increasing from 3.94% in 2020 to 33.96% in 2022 before settling at 19.22% in 2024. This ratio reflects the return generated on the company's total invested capital, including debt and equity, showcasing a strong performance in capital utilization and effectiveness in generating returns for investors.
Lastly, the return on equity (ROE) has shown a consistent upward trend, with values climbing from 2.71% in 2020 to 25.35% in 2022, before slightly declining to 13.21% in 2024. This indicates the company's ability to deliver returns to its shareholders relative to their equity investments, displaying a robust growth in shareholder value over the years.
Overall, the profitability ratios of Ethan Allen Interiors Inc demonstrate a positive trend, reflecting improved operational efficiency, effective capital utilization, and enhanced shareholder value creation, highlighting the company's strong financial performance and sustainable growth prospects.