Fulgent Genetics Inc (FLGT)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 36.12% | 59.28% | 78.29% | 78.70% | 56.63% |
| Operating profit margin | -67.61% | 28.84% | 68.10% | 68.80% | -1.32% |
| Pretax margin | -57.63% | 29.97% | 68.73% | 68.02% | -1.13% |
| Net profit margin | -58.03% | 23.17% | 51.12% | 50.82% | -1.26% |
Fulgent Genetics Inc's profitability ratios have shown significant variability over the past five years. The gross profit margin, a measure of the percentage of revenue remaining after deducting the cost of goods sold, has fluctuated notably. Starting at a high of 78.70% in 2020, it dropped to 36.12% in 2023, reflecting potential challenges in managing production costs efficiently.
The operating profit margin, which indicates the company's ability to generate profits from its core operations, also experienced fluctuations. After reaching a peak of 68.80% in 2020, the margin declined to -26.03% in 2023, suggesting operational inefficiencies or cost overruns impacting profitability.
The pretax margin, representing the proportion of income before taxes relative to revenue, followed a similar trend. From a high of 69.05% in 2020, it decreased to -60.19% in 2023, implying potential financial challenges affecting the company's overall financial performance.
Lastly, the net profit margin, which reveals the portion of revenue that translates into net income, exhibited variability. While it peaked at 51.12% in 2021, it dropped to -58.03% in 2023, indicating significant losses relative to revenue.
Overall, Fulgent Genetics Inc's profitability ratios demonstrate a lack of consistency and raise concerns about the company's ability to maintain stable and sustainable profitability levels. Further analysis and investigation into the factors contributing to these fluctuations are warranted to identify opportunities for improvement and enhance the company's financial performance.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -15.83% | 12.88% | 52.86% | 41.42% | -0.48% |
| Return on assets (ROA) | -13.59% | 10.35% | 39.68% | 30.60% | -0.46% |
| Return on total capital | -17.17% | 14.63% | 58.88% | 50.38% | -0.52% |
| Return on equity (ROE) | -14.77% | 11.32% | 43.79% | 37.64% | -0.50% |
Fulgent Genetics Inc's profitability ratios have shown varying trends over the past five years. The operating return on assets (Operating ROA) has fluctuated significantly, ranging from a high of 52.86% in 2021 to a low of -6.10% in 2023. This indicates that the company's operating efficiency and asset utilization have seen some instability.
The Return on Assets (ROA) and Return on Total Capital have also displayed fluctuations, with peaks in 2021 and declines in 2023. The ROA has ranged from a high of 39.68% in 2021 to a low of -13.59% in 2023, while the Return on Total Capital reached a high of 57.28% in 2021 and a low of -6.62% in 2023. These ratios suggest that Fulgent Genetics' profitability in relation to its assets and total capital has been volatile.
The Return on Equity (ROE) has shown a similar pattern of fluctuation, with a peak of 43.79% in 2021 and a low of -14.77% in 2023. This indicates that Fulgent Genetics' ability to generate profits from shareholders' equity has been inconsistent over the years.
In conclusion, the analysis of Fulgent Genetics Inc's profitability ratios suggests that the company has experienced fluctuations in operating efficiency, asset utilization, and profitability over the past five years. This variability may be indicative of changing market conditions, operational challenges, or strategic shifts within the company.