Griffon Corporation (GFF)
Profitability ratios
Return on sales
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 38.91% | 36.54% | 33.94% | 29.04% | 25.03% |
| Operating profit margin | 15.19% | 7.58% | -6.85% | 7.73% | 5.98% |
| Pretax margin | 11.32% | 4.34% | -6.33% | 5.38% | 3.41% |
| Net profit margin | 8.01% | 2.99% | -6.94% | 3.59% | 2.29% |
Over the past five years, Griffon Corporation has shown a positive trend in its profitability ratios. The gross profit margin has been steadily increasing, indicating improved efficiency in managing the cost of goods sold. This reflects well on the company's ability to generate profit from its core operations.
Similarly, the operating profit margin has shown a significant improvement, especially from negative in 2022 to positive in subsequent years. This suggests better control over operating expenses and enhanced operational efficiency, leading to higher profitability.
The pretax margin has also improved consistently, indicating that the company has been able to effectively manage its pre-tax earnings in relation to its total revenues. This reflects a more sustainable and healthy financial performance.
Moreover, the net profit margin has shown consistent growth, indicating that the company has been able to increase its bottom line profitability over the years. This reflects positively on Griffon Corporation's ability to generate profit after accounting for all expenses, including interest and tax payments.
Overall, Griffon Corporation's profitability ratios demonstrate a positive trend over the years, indicating improved operational efficiency and financial performance.
Return on investment
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 16.80% | 8.14% | -6.71% | 6.55% | 5.70% |
| Return on assets (ROA) | 8.85% | 3.21% | -6.80% | 3.04% | 2.18% |
| Return on total capital | 22.88% | 12.06% | -4.43% | 9.89% | 8.40% |
| Return on equity (ROE) | 93.33% | 24.62% | -40.11% | 9.81% | 7.63% |
Griffon Corporation's profitability ratios have fluctuated over the past five years.
The Operating Return on Assets (Operating ROA) has shown an improving trend, indicating that the company has been able to generate more operating income relative to its assets. The substantial increase from 5.70% in 2020 to 16.80% in 2024 is a positive sign of operational efficiency.
Return on Assets (ROA) has also exhibited an improving trend, showing the company's ability to generate profits from its assets. The ratio has increased steadily from 2.18% in 2020 to 8.85% in 2024, reflecting positively on Griffon Corporation's asset utilization.
Return on Total Capital has experienced fluctuations but has generally trended upwards over the period. This ratio measures the overall return generated on all capital employed, including debt and equity. The increase from 8.40% in 2020 to 22.88% in 2024 indicates an improvement in overall capital efficiency.
Return on Equity (ROE) has shown significant fluctuations, with a notable increase from 7.63% in 2020 to 93.33% in 2024. This sharp rise in ROE suggests that the company has been able to generate substantial profits for its shareholders relative to their equity investment.
Overall, the profitability ratios of Griffon Corporation demonstrate positive trends in operational efficiency, asset utilization, and returns generated for both total capital and equity. However, the fluctuating nature of some ratios underscores the need for continued monitoring and strategic financial management to ensure sustained profitability.