Greenbrier Companies Inc (GBX)
Profitability ratios
Return on sales
| Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 11.18% | 10.28% | 13.25% | 12.65% | 12.08% |
| Operating profit margin | 4.47% | 3.96% | 2.35% | 6.03% | 6.07% |
| Pretax margin | 2.21% | 2.18% | -0.45% | 3.19% | 3.71% |
| Net profit margin | 1.58% | 1.58% | 1.85% | 1.75% | 2.34% |
The profitability ratios of Greenbrier Cos., Inc. indicate the company's ability to generate and retain earnings from its operations.
Gross profit margin, which measures the percentage of revenue that exceeds the cost of goods sold, shows a slight improvement from 10.28% in 2022 to 11.18% in 2023. This suggests an enhancement in the company's ability to control production costs and increase pricing.
Operating profit margin, representing the proportion of revenue that translates into operating income, shows a substantial increase from 2.71% in 2022 to 5.22% in 2023. This notable improvement could be due to increased efficiency in operating expenses and perhaps a better revenue mix.
Pretax margin, indicating the percentage of each dollar of revenue that translates into pre-tax profit, also displays improvement from -0.29% in 2021 to 2.54% in 2023. This indicates the company's ability to better manage interest expenses, taxes, and non-operating costs.
Net profit margin, which reflects the portion of each dollar of revenue that ends up as net income, remained consistent at 1.58% from 2022 to 2023. This stability indicates a balance between efficient cost management and revenue generation.
In summary, Greenbrier Cos., Inc. has demonstrated improvements in its profitability, particularly in controlling costs and managing expenses, leading to enhanced operating and pre-tax margins. However, the consistency in net profit margin may warrant further analysis to understand the factors contributing to this stability.
Return on investment
| Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.43% | 3.06% | 1.21% | 5.31% | 6.16% |
| Return on assets (ROA) | 1.57% | 1.22% | 0.96% | 1.54% | 2.38% |
| Return on total capital | 8.16% | 5.50% | 2.28% | 9.40% | 10.24% |
| Return on equity (ROE) | 4.98% | 3.67% | 2.48% | 3.79% | 5.57% |
Greenbrier Cos., Inc.'s profitability ratios reflect its ability to generate earnings from its assets and capital. The operating return on assets (Operating ROA) has shown an increasing trend from 2.10% in 2022 to 5.17% in 2023, indicating improved operational efficiency and profitability. However, the return on assets (ROA) has been fluctuating, with a decrease from 1.22% in 2022 to 1.57% in 2023.
The return on total capital has also exhibited an upward trend, reaching 7.51% in 2023 from 3.24% in 2022. This suggests that the company has been successful in generating higher returns from its total invested capital. Similarly, the return on equity (ROE) has experienced fluctuations, with a slight increase to 4.98% in 2023 from 3.67% in 2022.
Overall, the company’s profitability ratios indicate an improvement in operational and capital effectiveness, but there are fluctuations in the returns generated from assets and equity, which require further investigation to determine the underlying factors impacting these ratios.