Genpact Limited (G)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 35.45% | 35.08% | 35.15% | 35.60% | 34.81% |
| Operating profit margin | 14.73% | 14.09% | 11.49% | 12.65% | 11.83% |
| Pretax margin | 14.20% | 13.45% | 10.64% | 12.01% | 10.80% |
| Net profit margin | 10.78% | 14.10% | 8.08% | 9.19% | 8.31% |
Genpact Limited's profitability ratios have shown some variability over the past five years. The gross profit margin has improved steadily from 34.81% in December 31, 2020, to 35.45% in December 31, 2024, indicating the company's ability to efficiently control production costs.
The operating profit margin has demonstrated fluctuations, with a peak at 14.73% in December 31, 2024. This indicates that Genpact has managed its operating expenses effectively to generate profits.
The pretax margin has also shown an upward trend, reaching 14.20% in December 31, 2024, reflecting the company's ability to generate profits before accounting for taxes.
However, the net profit margin has shown more variability, peaking at 14.10% in December 31, 2023, before declining to 10.78% in December 31, 2024. This suggests fluctuations in the company's bottom-line profitability after all expenses, including taxes.
Overall, Genpact Limited has shown a mix of improving and fluctuating profitability ratios over the past five years, indicating some strengths in cost management but also areas for potential improvement in maintaining consistent net profit margins.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 14.08% | 13.13% | 10.94% | 10.23% | 9.00% |
| Return on assets (ROA) | 10.30% | 13.14% | 7.70% | 7.43% | 6.33% |
| Return on total capital | 19.58% | 20.53% | 16.33% | 16.06% | 13.96% |
| Return on equity (ROE) | 21.50% | 28.08% | 19.35% | 19.47% | 16.81% |
Genpact Limited has shown a consistent improvement in its profitability ratios over the years.
1. Operating Return on Assets (Operating ROA) has increased steadily from 9.00% in 2020 to 14.08% in 2024. This indicates that Genpact is generating a higher operating profit relative to its total assets.
2. Return on Assets (ROA) fluctuated during the period but saw a substantial increase from 13.14% in 2023 to 10.30% in 2024. This suggests that the company is effectively utilizing its assets to generate profit.
3. Return on Total Capital has shown a consistent upward trend, starting from 13.96% in 2020 and reaching 19.58% in 2024. This implies that Genpact is generating higher returns in proportion to the total capital invested in the business.
4. Return on Equity (ROE) has also displayed a positive trend, from 16.81% in 2020 to 21.50% in 2024. This indicates that Genpact is effectively generating profit for its shareholders relative to their equity investments.
Overall, the improving profitability ratios of Genpact Limited suggest efficient management of assets, capital, and equity to generate returns for the company and its shareholders.