Ethan Allen Interiors Inc (ETD)
Profitability ratios
Return on sales
| Jun 30, 2025 | Mar 31, 2025 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 60.54% | 60.75% | 60.77% | 60.72% | 60.79% | 61.01% | 60.65% | 60.87% | 60.70% | 59.85% | 59.98% | 59.43% | 59.27% | 59.44% | 58.66% | 58.14% | 57.37% | 56.21% | 55.83% | 55.58% |
| Operating profit margin | 10.09% | 11.01% | 11.64% | 12.01% | 11.95% | 13.09% | 14.26% | 15.65% | 17.34% | 17.69% | 17.91% | 17.71% | 16.91% | 15.71% | 14.31% | 12.98% | 11.28% | 6.81% | 3.68% | 1.36% |
| Pretax margin | 11.23% | 12.37% | 13.06% | 13.36% | 13.22% | 14.13% | 15.12% | 16.35% | 17.82% | 17.96% | 18.04% | 17.74% | 16.89% | 15.68% | 14.29% | 12.91% | 11.15% | 6.55% | 3.45% | 1.19% |
| Net profit margin | 8.39% | 9.29% | 9.76% | 9.99% | 9.88% | 10.63% | 11.37% | 12.27% | 13.37% | 13.42% | 13.52% | 13.30% | 12.63% | 11.73% | 10.84% | 9.88% | 8.76% | 4.98% | 2.44% | 0.73% |
The profitability ratios of Ethan Allen Interiors Inc. exhibit a consistent trend of improvement followed by a stabilization or slight decline over the specified period. Commencing with the gross profit margin, the company demonstrated a steady increase from 55.58% as of September 30, 2020, to approximately 60.75% by March 31, 2025. This upward trajectory indicates an enhancement in the company's ability to generate gross profit relative to sales, reflecting improvements in cost management or product pricing strategies.
Similarly, the operating profit margin illustrates a significant growth during the analyzed period, rising from a modest 1.36% at the end of September 2020 to a peak of 17.91% in December 2022. Subsequently, a gradual decline to approximately 10% by June 2025 is observed. The initial rise signals improved operational efficiency and better control over operating expenses, contributing to higher profitability before pressures such as increased costs or changing market conditions influence margins downward in the later periods.
The pretax margin follows a comparable trend, increasing from 1.19% in September 2020 to a high of 18.04% in December 2022, then tapering off to around 11.23% by June 2025. This reflects the company's ability to sustain higher profit levels before accounting for income taxes, which implies improved operational performance and effective cost management.
The net profit margin, which measures overall profitability after all expenses, including taxes, demonstrates growth from 0.73% at the end of September 2020 to approximately 13.52% in December 2022. After this peak, it exhibits a declining trend, reaching about 8.39% in June 2025. The trends across net profit margins underscore the company's initial success in boosting profitability but also highlight challenges in maintaining these levels amid evolving operational costs, tax impacts, or market competition.
Overall, Ethan Allen Interiors Inc. has shown substantial improvement in profitability ratios from late 2020 through 2022, driven by enhanced gross and operating profit margins. However, the subsequent gradual decline in all profitability metrics from late 2022 onward reflects increased cost pressures or market dynamics impacting overall bottom-line performance towards mid-2025.
Return on investment
| Jun 30, 2025 | Mar 31, 2025 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.41% | 9.28% | 9.95% | 10.36% | 10.37% | 11.73% | 13.92% | 15.67% | 18.40% | 19.89% | 21.19% | 20.85% | 19.20% | 16.84% | 15.48% | 13.71% | 11.31% | 5.93% | 3.31% | 1.23% |
| Return on assets (ROA) | 7.00% | 7.83% | 8.35% | 8.62% | 8.57% | 9.53% | 11.09% | 12.29% | 14.19% | 15.10% | 16.01% | 15.66% | 14.35% | 12.58% | 11.72% | 10.44% | 8.78% | 4.33% | 2.19% | 0.67% |
| Return on total capital | 10.90% | 15.56% | 15.99% | 16.40% | 16.13% | 18.12% | 21.20% | 25.00% | 28.34% | 32.03% | 34.21% | 35.82% | 34.09% | 31.68% | 29.68% | 27.72% | 22.86% | 12.00% | 6.53% | 2.62% |
| Return on equity (ROE) | 10.70% | 12.07% | 12.78% | 13.40% | 13.21% | 14.81% | 16.94% | 19.64% | 22.46% | 24.70% | 26.15% | 27.18% | 25.35% | 23.42% | 22.09% | 20.52% | 17.07% | 8.35% | 4.01% | 1.25% |
The profitability ratios of Ethan Allen Interiors Inc. over the analyzed period reflect significant fluctuations indicative of evolving operational efficiency, asset utilization, and shareholder returns.
Operating Return on Assets (Operating ROA):
Initially, the Operating ROA was modest at 1.23% as of September 2020, suggesting limited efficiency in generating operating profits relative to total assets. Subsequently, a steady and substantial upward trend occurred, peaking at 20.85% in September 2022. This suggests the company's enhanced ability to generate operating income from its asset base during this period. However, post-2022, a declining trend emerged, decreasing to 15.67% in September 2023, and further diminishing to 9.28% by March 2025. These declines reflect a reduction in operating efficiency and productivity relative to assets.
Return on Assets (ROA):
Similarly, the ROA demonstrates a progressive increase from 0.67% in September 2020 to a peak of 16.01% in December 2022. After this peak, the ratio declined, reaching approximately 7% by June 2025. The declining trend indicates diminishing profitability generated from the company's total assets, possibly due to increased costs, higher asset base without proportional profit growth, or operational headwinds.
Return on Total Capital:
This metric increased notably from 2.62% at September 2020 to a peak of 35.82% in September 2022, reflecting effective utilization of both debt and equity capital to generate profits during this period. Post-2022, the ratio has trended downward, ending at around 10.90% in June 2025. The decline signals reduced efficiency in capital deployment, perhaps attributable to rising costs, increased leverage without commensurate profit, or changing market conditions affecting asset and capital productivity.
Return on Equity (ROE):
ROE exhibits a sharp rise from 1.25% in September 2020 to peaks of over 27% in September 2022, indicating that shareholders gained significant returns during this period. However, from late 2022 onwards, ROE has declined markedly, intercepting at approximately 10.70% in June 2025. This decline in ROE suggests a deterioration in profitability relative to shareholders' equity, potentially caused by increased equity financing, reduced net income, or both.
Summary:
The period from September 2020 to late 2022 reflects a phase of rapidly improving profitability ratios across operating, asset, capital, and equity metrics, likely driven by operational expansion, efficiency improvements, or favorable market conditions. Conversely, the subsequent decline in these ratios signals a waning of these efficiencies, possibly due to market saturation, increased costs, or strategic shifts. Overall, while the company experienced a substantial profitability uplift during the early part of this timeframe, recent trends suggest a moderation in profitability, warranting further investigation into underlying causes and strategic responses.