Graham Holdings Co (GHC)
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 | 29.31% | 27.83% | 27.96% | 28.80% | 28.95% | 30.61% | 31.04% | 31.47% | 32.28% | 32.78% | 33.05% | 33.33% | 33.63% | 33.93% | 34.25% | 34.34% | 33.89% | 32.53% | 31.66% | 31.25% |
| Operating profit margin | 5.05% | 4.51% | 1.60% | 1.75% | 2.52% | 4.88% | 8.98% | 8.89% | 9.87% | 7.19% | 3.99% | 4.09% | 2.43% | 3.25% | 5.23% | 4.40% | 3.48% | 2.95% | 2.10% | 3.79% |
| Pretax margin | 21.39% | 7.21% | 4.66% | 8.72% | 6.77% | 5.97% | 7.49% | 1.53% | 3.10% | 5.20% | 5.14% | 12.62% | 14.11% | 21.37% | 24.48% | 22.33% | 14.10% | 9.58% | 7.78% | 8.00% |
| Net profit margin | 15.12% | 4.86% | 2.89% | 6.12% | 4.65% | 3.67% | 5.07% | 0.58% | 1.69% | 3.88% | 4.29% | 9.83% | 10.98% | 16.17% | 17.92% | 15.50% | 10.38% | 7.28% | 6.04% | 7.14% |
Graham Holdings Co's profitability ratios have shown varying trends over the years:
1. Gross Profit Margin: The trend in gross profit margin has been declining gradually from 31.25% as of March 31, 2020, to 29.31% as of December 31, 2024. There was a slight increase in the margin in the latest reported quarter.
2. Operating Profit Margin: The operating profit margin fluctuated significantly, with a peak of 9.87% as of December 31, 2022, followed by a decline to 1.60% as of June 30, 2024. There was a slight recovery in the margin in the most recent quarter.
3. Pre-tax Margin: The pre-tax margin varied notably, with a peak of 24.48% as of June 30, 2021, followed by a decline to 4.66% as of June 30, 2024. The margin showed a substantial increase in the last reported quarter compared to the previous quarters.
4. Net Profit Margin: The net profit margin showed a similar trend to the pre-tax margin, with a peak of 17.92% as of June 30, 2021, and a significant decline to 2.89% as of June 30, 2024. However, there was a noticeable improvement in the margin as of December 31, 2024.
Overall, while the company experienced fluctuations in profitability ratios over the years due to various factors impacting its operations, it is important to closely monitor these ratios to assess the company's financial performance and potential future prospects.
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) | 3.15% | 2.86% | 1.02% | 1.10% | 1.55% | 3.14% | 5.73% | 5.49% | 5.89% | 3.68% | 1.96% | 1.88% | 1.04% | 1.51% | 2.40% | 1.94% | 1.56% | 1.45% | 1.07% | 1.99% |
| Return on assets (ROA) | 9.44% | 3.09% | 1.85% | 3.82% | 2.86% | 2.36% | 3.24% | 0.36% | 1.01% | 1.98% | 2.11% | 4.53% | 4.71% | 7.53% | 8.22% | 6.82% | 4.65% | 3.59% | 3.07% | 3.76% |
| Return on total capital | 27.82% | 12.13% | 11.90% | 14.18% | 11.86% | 11.10% | 9.67% | 3.17% | 4.71% | 5.68% | 5.27% | 10.43% | 11.01% | 17.79% | 19.55% | 17.57% | 11.37% | 8.82% | 7.40% | 7.82% |
| Return on equity (ROE) | 17.02% | 5.72% | 3.36% | 6.86% | 5.16% | 4.29% | 5.61% | 0.63% | 1.77% | 3.39% | 3.51% | 7.47% | 7.95% | 12.68% | 13.62% | 11.53% | 7.98% | 6.44% | 5.44% | 6.62% |
Graham Holdings Co's profitability ratios show fluctuations over the periods analyzed.
1. Operating Return on Assets (Operating ROA) ranged between 1.02% and 5.89%, with a noticeable increase in the most recent periods. This ratio measures the profitability of the company's core operations relative to its assets.
2. Return on Assets (ROA) varied from 0.36% to 9.44%, showing significant fluctuations. ROA indicates how efficiently the company is utilizing its assets to generate profits.
3. Return on Total Capital ranged from 3.17% to 27.82%, exhibiting variability. This ratio assesses the overall profitability considering both debt and equity financing.
4. Return on Equity (ROE) fluctuated between 0.63% and 17.02%. ROE reflects the return generated for the shareholders' equity investment and indicates the company's efficiency in utilizing equity capital.
Overall, while Graham Holdings Co's profitability ratios experienced fluctuations, a detailed examination of the trends over time can provide insights into the company's financial performance and efficiency in generating returns for its stakeholders.