Genpact Limited (G)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 35.08% | 35.15% | 35.60% | 34.81% | 34.82% |
| Operating profit margin | 14.09% | 11.49% | 12.65% | 11.83% | 12.20% |
| Pretax margin | 13.45% | 10.64% | 12.01% | 10.80% | 11.35% |
| Net profit margin | 14.10% | 8.08% | 9.19% | 8.31% | 8.66% |
Genpact Ltd has shown consistency in its gross profit margin over the past five years, ranging between 34.81% and 35.60%. This indicates the efficiency of the company in managing its production costs and generating revenue.
The operating profit margin has exhibited an upward trend, increasing from 11.31% in 2019 to 13.99% in 2023. This reflects the company's ability to control operating expenses and improve operational efficiency.
The pretax margin has also shown a positive trend, with fluctuations in between. It increased from 10.80% in 2020 to 13.45% in 2023, which signifies that Genpact Ltd has been successful in managing its pre-tax profitability and minimizing tax expenses.
The net profit margin has shown variability but generally trended upwards, reaching 14.10% in 2023. This indicates that the company has been effective in managing its overall expenses, including taxes and interest payments, to enhance its bottom line profitability.
Overall, Genpact Ltd's profitability ratios demonstrate a positive trajectory over the years, with improvements in operating efficiency and effective cost management contributing to enhanced profitability.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 13.13% | 10.94% | 10.23% | 9.00% | 9.64% |
| Return on assets (ROA) | 13.14% | 7.70% | 7.43% | 6.33% | 6.84% |
| Return on total capital | 20.53% | 16.33% | 16.06% | 13.96% | 14.18% |
| Return on equity (ROE) | 28.08% | 19.35% | 19.47% | 16.81% | 18.05% |
Genpact Ltd has shown a consistent improvement in its profitability ratios over the past five years. The Operating return on assets (Operating ROA) has increased from 8.94% in 2019 to 13.03% in 2023, indicating that the company is generating more operating income for each dollar of assets employed. This suggests improved operational efficiency and effectiveness in utilizing its assets to generate profits.
Similarly, the Return on assets (ROA) has also seen a positive trend, rising from 6.84% in 2019 to 13.14% in 2023. This indicates that Genpact is generating higher profits relative to its total assets over the years, reflecting improved asset utilization and profit generation capabilities.
The Return on total capital has shown a steady increase, reaching 17.72% in 2023 from 13.69% in 2019. This metric suggests that the company has been successful in generating returns for both equity and debt investors, showcasing efficient capital allocation.
Lastly, the Return on equity (ROE) has experienced significant growth, climbing from 18.05% in 2019 to 28.08% in 2023. This indicates that Genpact has been able to enhance shareholder value by generating higher returns on their invested equity.
Overall, the improving trend in profitability ratios for Genpact Ltd signifies strong financial performance and effective management of its assets and capital resources, which may be indicative of sound strategic decision-making and operational execution by the company.