Grid Dynamics Holdings Inc (GDYN)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 36.23% | 36.16% | 38.84% | 41.52% | 37.40% |
| Operating profit margin | -0.60% | -1.78% | -6.77% | 0.02% | -13.88% |
| Pretax margin | 3.15% | 1.55% | -6.59% | -1.16% | -13.67% |
| Net profit margin | 1.15% | -0.56% | -9.41% | -3.64% | -11.32% |
Grid Dynamics Holdings Inc has experienced fluctuations in its profitability ratios over the past five years. The gross profit margin has shown some variability, starting at 37.40% in 2020, peaking at 41.52% in 2021, and then gradually decreasing to 36.23% by the end of 2024. This indicates the company's ability to generate revenue after accounting for the cost of goods sold.
On the other hand, the operating profit margin, which reflects efficiency in managing operating expenses, started in negative territory at -13.88% in 2020, improved to 0.02% in 2021, but declined again to -0.60% in 2024. This suggests that the company may have struggled with controlling its operating costs in recent years.
The pretax margin, a measure of profitability before taxes, also exhibited volatility, starting at -13.67% in 2020, slightly recovering to 3.15% in 2024. The net profit margin, which indicates the company's bottom-line profitability after all expenses have been deducted, has similarly varied, ranging from -11.32% in 2020 to 1.15% in 2024.
Overall, Grid Dynamics Holdings Inc has faced challenges in maintaining consistent profitability levels, with fluctuations in various margin ratios indicating potential issues with cost management and operational efficiency. Further analysis of the company's financial performance and strategic initiatives may be necessary to fully understand the underlying reasons for these trends.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -0.36% | -1.28% | -5.11% | 0.02% | -9.24% |
| Return on assets (ROA) | 0.68% | -0.41% | -7.11% | -3.00% | -7.54% |
| Return on total capital | 0.00% | -1.16% | -5.63% | 0.02% | -10.18% |
| Return on equity (ROE) | 0.78% | -0.46% | -8.05% | -3.39% | -8.30% |
Grid Dynamics Holdings Inc has shown mixed profitability performance over the years based on the provided data.
- Operating Return on Assets (Operating ROA) was negative in 2020 and 2022 with percentages of -9.24% and -5.11% respectively, indicating that the company struggled to generate operating profits from its assets during those years. However, there was a slight improvement in 2021 and 2023, with percentages of 0.02% and -1.28% respectively. Overall, the company's operating profitability remains relatively low.
- Return on Assets (ROA) was consistently negative from 2020 to 2023, with percentages ranging from -7.54% to -0.41%. However, there was a significant improvement in 2024, with a positive ROA of 0.68%. This indicates that the company generated a small profit relative to its total assets in 2024.
- Return on Total Capital showed a similar trend to ROA, with negative percentages in 2020, 2022, and 2023, and an improvement to 0.02% in 2021. The company achieved breakeven in 2024 with a return of 0.00%, suggesting that there was no additional return generated from total capital invested.
- Return on Equity (ROE) also followed a pattern of negative returns from 2020 to 2023, ranging from -8.30% to -0.46%. However, there was a positive turnaround in 2024, with a ROE of 0.78%, indicating that the company generated a modest return for its equity holders.
Overall, Grid Dynamics Holdings Inc struggled with profitability in the earlier years but showed some signs of improvement in 2024. However, it is important to monitor future trends to assess the sustainability of these improvements.