Godaddy Inc (GDDY)
Profitability ratios
Return on sales
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 61.59% | 58.71% | 58.97% | 59.49% | 60.35% | 63.02% | 63.24% | 63.62% | 63.72% | 63.69% | 63.77% | 63.72% | 64.04% | 64.56% | 64.93% | 64.89% | 65.07% | 65.02% | 64.89% | 65.23% |
| Operating profit margin | 20.16% | 19.36% | 17.74% | 15.85% | 13.13% | 11.74% | 10.94% | 11.15% | 12.19% | 12.01% | 12.25% | 11.58% | 10.01% | 9.53% | 8.76% | 7.17% | 8.21% | 7.86% | 8.03% | 8.08% |
| Pretax margin | 16.75% | 15.34% | 13.49% | 11.55% | 9.49% | 8.40% | 7.73% | 7.98% | 8.71% | 8.65% | 8.81% | 8.13% | 6.65% | 6.20% | 5.62% | -15.39% | -14.94% | -15.65% | -15.92% | 5.18% |
| Net profit margin | 20.50% | 41.37% | 40.74% | 39.98% | 32.32% | 8.45% | 7.78% | 8.03% | 8.61% | 8.49% | 8.58% | 7.66% | 6.35% | 6.15% | 5.43% | -15.39% | -14.93% | -15.67% | -15.72% | 5.44% |
Based on the provided data, let's analyze the profitability ratios of Godaddy Inc over the quarters from March 31, 2020, to December 31, 2024:
1. Gross Profit Margin:
- The gross profit margin shows the percentage of revenue that exceeds the cost of goods sold. Godaddy Inc's gross profit margin has fluctuated over the quarters, ranging from a high of 65.23% in March 2020 to a low of 58.71% in September 2024. The trend shows a gradual decline from 65.23% in March 2020 to 61.59% in December 2024, indicating a potential increase in production or procurement costs relative to sales.
2. Operating Profit Margin:
- The operating profit margin reveals the proportion of revenue that translates into operating profit after deducting operating expenses. Godaddy Inc's operating profit margin has shown variability, with a substantial increase from 8.08% in March 2020 to 20.16% in December 2024. The trend indicates an improvement in operational efficiency and cost management over the quarters.
3. Pretax Margin:
- The pretax margin reflects the company's profitability before accounting for taxes. Godaddy Inc's pretax margin showcases a turnaround from negative margins in mid-2020 to positive margins from March 2021 onwards. The pretax margin steadily increased from 5.18% in March 2020 to 16.75% in December 2024, indicating enhanced financial performance and effective tax management strategies.
4. Net Profit Margin:
- The net profit margin represents the percentage of revenue that translates into net income after deducting all expenses. Godaddy Inc's net profit margin displayed significant improvement, from negative margins in mid-2020 to positive margins in subsequent quarters. The net profit margin surged from -15.39% in March 2021 to 20.50% in December 2024, reflecting robust operational efficiency, effective cost control, and potentially favorable adjustments in the income tax component.
In conclusion, Godaddy Inc's profitability has shown positive trends in terms of operating efficiency and financial performance, as evidenced by the improvement in operating, pretax, and net profit margins over the analyzed quarters. However, a decline in the gross profit margin towards the end of the period warrants further investigation into cost structures and pricing strategies to sustain profitability.
Return on investment
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 11.19% | 10.84% | 10.11% | 8.59% | 7.38% | 7.58% | 6.70% | 6.49% | 7.15% | 6.91% | 7.10% | 6.57% | 5.15% | 4.79% | 4.22% | 3.39% | 4.23% | 4.08% | 4.14% | 4.03% |
| Return on assets (ROA) | 11.38% | 23.16% | 23.21% | 21.67% | 18.17% | 5.45% | 4.76% | 4.67% | 5.05% | 4.89% | 4.98% | 4.35% | 3.27% | 3.09% | 2.62% | -7.26% | -7.70% | -8.14% | -8.10% | 2.71% |
| Return on total capital | 133.87% | 242.95% | 498.15% | 170.95% | 988.91% | — | — | — | — | — | — | — | 467.32% | — | — | — | — | — | — | 55.40% |
| Return on equity (ROE) | 135.37% | 519.26% | 1,141.66% | 416.83% | 2,210.29% | — | — | — | — | — | — | — | 296.57% | — | — | — | — | — | — | 34.74% |
Godaddy Inc's profitability ratios show a positive trend over the years.
1. Operating return on assets (Operating ROA) has been consistently improving from 4.03% in March 2020 to 11.19% in December 2024, indicating efficient management of assets to generate operating profits.
2. Return on assets (ROA) was negative in mid-2020 but turned positive and increased significantly to 23.16% by September 2024, reflecting improved income generation from total assets.
3. Return on total capital shows a mixed trend, with significant fluctuations but overall an increasing trend from 55.40% in March 2020 to 133.87% in December 2024, indicating the ability to generate returns from total invested capital.
4. Return on equity (ROE) also demonstrates a positive trend, with significant growth from 34.74% in March 2020 to 135.37% in December 2024, showing the profitability generated for equity shareholders.
Overall, the profitability ratios of Godaddy Inc have shown improvement, reflecting the company's effective utilization of assets and capital to generate profits and returns for its shareholders over the years.