Gen Digital Inc. (GEN)
Profitability ratios
Return on sales
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 80.82% | 82.35% | 85.41% | 85.81% | 84.22% |
| Operating profit margin | 29.43% | 36.76% | 35.94% | 35.12% | 14.26% |
| Pretax margin | 12.04% | 24.09% | 37.27% | 28.62% | 165.78% |
| Net profit margin | 16.16% | 40.41% | 29.90% | 21.72% | 156.10% |
Gen Digital Inc.'s profitability ratios indicate fluctuations over the five-year period. The gross profit margin has shown a general trend of decline from 85.41% in 2022 to 80.82% in 2024, indicating a decreased ability to generate profits after accounting for the cost of goods sold.
The operating profit margin also displays a decreasing trend, falling from 35.94% in 2022 to 29.43% in 2024. This suggests that the company's operating expenses have increased relative to its revenue, impacting profitability at the operating level.
The pretax margin has fluctuated over the period, with a notable decrease from 37.27% in 2022 to 12.04% in 2024. This indicates that the company's profitability before accounting for taxes has decreased significantly in the most recent year, potentially due to factors affecting the company's revenue and expenses.
Similarly, the net profit margin has shown variability, dropping from 29.90% in 2022 to 16.16% in 2024. This indicates that after considering all expenses, including taxes, the company's bottom-line profitability has decreased over the years.
Overall, the declining trend in profitability margins suggests that Gen Digital Inc. may be facing challenges in maintaining its profitability levels and will need to assess its cost structure and revenue generation strategies to improve its overall financial performance in the future.
Return on investment
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.11% | 7.69% | 14.48% | 14.09% | 4.59% |
| Return on assets (ROA) | 3.91% | 8.46% | 12.04% | 8.71% | 50.25% |
| Return on total capital | 10.56% | 10.46% | 38.02% | 32.14% | 10.22% |
| Return on equity (ROE) | 28.04% | 61.32% | — | — | 38,870.00% |
Gen Digital Inc. has shown variability in its profitability ratios over the past five years.
- The Operating return on assets (Operating ROA) has decreased from 14.48% in 2022 to 7.11% in 2024, indicating a decline in the company's ability to generate operating income relative to its total assets.
- The Return on assets (ROA) fluctuated over the years, ranging from 3.91% in 2024 to 50.25% in 2020. The significant drop in 2024 suggests a lower profitability relative to its total assets compared to previous years.
- Return on total capital has also shown variation, with the highest being 38.02% in 2022 and the lowest being 10.22% in 2020. The ratio in 2024 is 10.56%, indicating a moderate return on the total capital employed by the company.
- The Return on equity (ROE) has displayed significant fluctuations, ranging from 28.04% in 2024 to an exceptionally high figure in 2020 of 38,870.00%. However, the absence of data for 2022 and 2021 limits a complete understanding of Gen Digital Inc.'s return on equity trend.
In summary, Gen Digital Inc.'s profitability ratios have shown inconsistency over the years, with varying levels of return on assets, operating return on assets, return on total capital, and return on equity. Further analysis is recommended to understand the underlying factors contributing to these fluctuations in profitability.