Hologic Inc (HOLX)
Profitability ratios
Return on sales
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 51.40% | 61.64% | 67.39% | 58.98% | 34.77% |
| Operating profit margin | 16.58% | 33.73% | 44.04% | 29.26% | -3.68% |
| Pretax margin | 16.78% | 32.66% | 41.95% | 26.66% | -7.65% |
| Net profit margin | 11.31% | 26.77% | 33.23% | 29.53% | -6.05% |
The profitability of Hologic, Inc. as indicated by its profitability ratios has shown a slight decline over the past five years. The gross profit margin has decreased from 72.31% in 2021 to 60.95% in 2023, indicating the company's ability to control production costs has weakened. The operating profit margin has also declined from 44.08% in 2021 to 23.35% in 2023, implying a decrease in operational efficiency or an increase in operating expenses.
Furthermore, the pretax margin has experienced a similar decline, dropping from 41.92% in 2021 to 16.78% in 2023, suggesting a reduction in the company's ability to generate profit before taxes or a rise in non-operating expenses. The net profit margin has followed the same trend, decreasing from 33.23% in 2021 to 11.31% in 2023, indicating a decrease in the company's ability to generate profit after all expenses, including taxes.
This downward trend in profitability ratios may raise concerns about the company's overall financial performance and its ability to maintain sustainability. It is important for stakeholders to monitor the company's strategies to address these declines and improve its overall profitability.
Return on investment
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.31% | 18.08% | 27.81% | 15.36% | -1.92% |
| Return on assets (ROA) | 4.99% | 14.35% | 20.98% | 15.50% | -3.16% |
| Return on total capital | 10.43% | 21.90% | 35.44% | 20.72% | -2.39% |
| Return on equity (ROE) | 9.09% | 26.70% | 44.36% | 41.22% | -9.62% |
Based on the profitability ratios of Hologic, Inc., we can observe the following trends over the past five years:
1. Operating return on assets (Operating ROA) has shown a declining trend from 27.84% in 2021 to 10.30% in 2023. This indicates that the company's operating income generated from its assets has decreased over the years.
2. Return on assets (ROA) has also shown a decreasing trend, with a significant drop from 20.98% in 2021 to 4.99% in 2023. This suggests that the overall profitability in relation to the total assets has decreased.
3. Return on total capital has followed a similar trend, declining from 34.15% in 2021 to 11.98% in 2023. This indicates a decrease in the overall return generated from the company's total capital.
4. Return on equity (ROE) has also shown a decreasing trend, with a notable decrease from 44.36% in 2021 to 9.09% in 2023. This suggests that the company's ability to generate profits from shareholders' equity has declined.
Overall, the profitability ratios of Hologic, Inc. indicate a general trend of declining profitability and efficiency in generating returns from its assets, total capital, and equity over the past five years. This may warrant a closer examination of the company's operational and financial performance to identify potential factors contributing to this decline and develop strategies for improvement.