Fulgent Genetics Inc (FLGT)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 37.82% | 36.12% | 59.28% | 78.29% | 78.70% |
| Operating profit margin | -26.08% | -25.14% | 28.84% | 10.51% | 68.80% |
| Pretax margin | -18.33% | -60.19% | 29.73% | 10.51% | 69.17% |
| Net profit margin | -15.07% | -58.03% | 23.17% | 10.51% | 50.82% |
Fulgent Genetics Inc experienced a steady decline in its gross profit margin from 78.70% in December 2020 to 37.82% in December 2024. This indicates that the company's profitability from sales has decreased over the years.
The operating profit margin also saw a significant decline, moving from 68.80% in December 2020 to -26.08% in December 2024. This suggests that Fulgent Genetics struggled to generate profits from its core operations and may have faced challenges in controlling its operating expenses.
Similarly, the pretax margin and net profit margin both experienced sharp declines over the period. The pretax margin decreased from 69.17% in December 2020 to -18.33% in December 2024, while the net profit margin dropped from 50.82% to -15.07% during the same period. These declines indicate that the company faced challenges in generating profits after accounting for all expenses, including taxes.
In conclusion, Fulgent Genetics Inc's profitability ratios show a consistent decline over the years, highlighting potential financial struggles and inefficiencies within the company's operations. Further analysis and strategic interventions may be needed to improve profitability and ensure long-term sustainability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -6.06% | -5.88% | 12.88% | 8.16% | 41.42% |
| Return on assets (ROA) | -3.50% | -13.59% | 10.35% | 8.16% | 30.60% |
| Return on total capital | 0.00% | -6.40% | 14.54% | 8.95% | 50.96% |
| Return on equity (ROE) | -3.77% | -14.77% | 11.29% | 8.95% | 37.64% |
Fulgent Genetics Inc's profitability ratios have shown fluctuations over the past five years.
1. Operating Return on Assets (Operating ROA) has declined from 41.42% in 2020 to 8.16% in 2021, indicating a decrease in the company's operating efficiency. However, there was a slight improvement to 12.88% in 2022, followed by negative returns in 2023 and 2024 (-5.88% and -6.06% respectively).
2. Return on Assets (ROA) also declined significantly from 30.60% in 2020 to 8.16% in 2021, and further to 10.35% in 2022. However, the ratio turned negative in 2023 (-13.59%) and 2024 (-3.50%), reflecting a deterioration in the company's ability to generate profits from its assets.
3. Return on Total Capital decreased from 50.96% in 2020 to 8.95% in 2021, but then slightly improved to 14.54% in 2022. The ratio then turned negative in 2023 (-6.40%) and remained at 0.00% in 2024, indicating struggles in generating returns using total capital employed.
4. Return on Equity (ROE) followed a similar trend, dropping from 37.64% in 2020 to 8.95% in 2021 and then slightly increasing to 11.29% in 2022. However, there were substantial decreases in 2023 and 2024 (-14.77% and -3.77% respectively), indicating a decline in profitability relative to shareholders' equity.
Overall, the downward trend in Fulgent Genetics Inc's profitability ratios raises concerns about its ability to efficiently utilize assets and generate returns for its capital providers.