Graham Holdings Co (GHC)
Profitability ratios
Return on sales
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 80.30% | 96.72% | 99.27% | 99.72% | 100.20% | 103.13% | 101.84% | 101.06% | 100.44% | 100.32% | 100.30% | 98.95% | 97.93% | 100.91% | 101.65% | 102.61% | 103.42% | 101.81% | 101.71% | 102.23% |
| Operating profit margin | 1.58% | -0.61% | 2.15% | 1.79% | 2.16% | 4.37% | 2.44% | 2.47% | 2.42% | 3.28% | 5.26% | 4.43% | 3.49% | 2.95% | 2.10% | 3.79% | 4.93% | 6.64% | 8.39% | 8.87% |
| Pretax margin | 6.64% | 5.88% | 7.43% | 1.47% | 3.05% | 5.15% | 5.11% | 12.57% | 14.04% | 21.53% | 24.60% | 22.49% | 14.19% | 9.59% | 7.81% | 8.02% | 14.54% | 10.87% | 13.86% | 13.79% |
| Net profit margin | 4.66% | 3.68% | 5.09% | 0.59% | 1.73% | 3.94% | 4.36% | 9.90% | 11.02% | 16.37% | 18.09% | 15.67% | 10.45% | 7.30% | 6.05% | 7.16% | 11.18% | 8.35% | 11.48% | 11.36% |
Graham Holdings Co.'s profitability ratios have fluctuated over the past eight quarters. The gross profit margin has shown a consistent decline from 32.28% in Q4 2022 to 29.72% in Q4 2023, indicating a reduction in the percentage of revenue retained after accounting for the cost of goods sold.
The operating profit margin has also varied, with a peak of 5.42% in Q4 2022 and a recent low of 3.82% in Q4 2023. This suggests a degree of inconsistency in the company's ability to generate profits from its core operations.
Similarly, the pretax margin has seen significant volatility, ranging from 1.53% in Q1 2023 to 12.62% in Q1 2022. This indicates fluctuation in the company's ability to generate profits before accounting for taxes.
The net profit margin has displayed a similar pattern of inconsistency, with a range of 0.58% in Q1 2023 to 9.83% in Q1 2022. This metric reflects the company's overall profitability after all expenses, including taxes, have been taken into account.
Overall, Graham Holdings Co.'s profitability ratios show varying levels of performance over the analyzed period, suggesting potential challenges in maintaining stable and consistent profitability. Further analysis and comparison with industry peers may provide additional insights into the company's financial performance and potential areas for improvement.
Return on investment
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 0.97% | -0.39% | 1.37% | 1.09% | 1.28% | 2.22% | 1.19% | 1.13% | 1.04% | 1.51% | 2.40% | 1.94% | 1.56% | 1.45% | 1.07% | 1.99% | 2.44% | 3.46% | 4.49% | 4.66% |
| Return on assets (ROA) | 2.86% | 2.36% | 3.24% | 0.36% | 1.02% | 2.00% | 2.13% | 4.55% | 4.74% | 7.55% | 8.25% | 6.84% | 4.66% | 3.60% | 3.08% | 3.77% | 5.53% | 4.35% | 6.15% | 5.97% |
| Return on total capital | 7.54% | 6.92% | 8.35% | 2.69% | 4.02% | 4.93% | 4.65% | 9.28% | 9.79% | 15.75% | 17.36% | 15.57% | 10.46% | 8.11% | 6.85% | 7.38% | 12.17% | 9.78% | 11.78% | 11.83% |
| Return on equity (ROE) | 5.16% | 4.29% | 5.62% | 0.63% | 1.80% | 3.42% | 3.54% | 7.52% | 8.00% | 12.73% | 13.67% | 11.56% | 7.99% | 6.45% | 5.45% | 6.64% | 9.88% | 7.82% | 10.57% | 10.36% |
Graham Holdings Co. has shown varying levels of profitability over the past eight quarters based on key financial ratios. Operating return on assets (Operating ROA) has been relatively stable, ranging from 1.57% to 3.33% over the period. This ratio indicates that the company is generating operating profits of around 2-3% for every dollar of assets employed in its operations.
Return on assets (ROA) has shown more fluctuation, with a low of 0.36% in Q1 2023 and a high of 3.23% in Q2 2023. This ratio assesses the overall profitability of the company in relation to its total assets and provides insight into how efficiently the company is using its assets to generate earnings.
Return on total capital has also shown variability, ranging from 2.41% to 4.69% over the period. This ratio evaluates the company's ability to generate profit from all sources of funds, including debt and equity.
Return on equity (ROE) has exhibited a wider range, from 0.62% to 7.47%, reflecting the return generated on shareholders' equity. The fluctuation in ROE indicates the company's ability to effectively leverage equity to generate profits for its investors.
Overall, while Graham Holdings Co. has demonstrated some level of profitability across these ratios, the fluctuations suggest that the company's performance may be influenced by various factors, such as economic conditions, industry dynamics, and management decisions. It is important for stakeholders to monitor these ratios closely to assess the company's financial health and performance over time.