Insteel Industries Inc (IIIN)
Profitability ratios
Return on sales
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 10.07% | 23.86% | 20.58% | 11.80% | 6.60% |
| Operating profit margin | 5.23% | 19.44% | 14.22% | 4.49% | 0.98% |
| Pretax margin | 6.43% | 19.56% | 14.58% | 5.11% | 1.64% |
| Net profit margin | 4.99% | 15.12% | 11.28% | 4.02% | 1.23% |
Insteel Industries, Inc.'s profitability ratios have shown fluctuations over the past five years. The gross profit margin, which measures the company's ability to generate profit from its sales after accounting for the cost of goods sold, exhibited significant variability, declining from 23.86% in 2022 to 10.07% in 2023. This substantial decrease may indicate higher production costs relative to revenue during the most recent period.
Similarly, the operating profit margin, reflecting the company's capacity to generate profits from its core operations, experienced a decline from 19.50% in 2022 to 5.35% in 2023. This decrease suggests that the company's operating expenses grew at a faster pace than its operating income during the period in question.
The pretax margin, which illustrates the company's profitability before accounting for taxes, also displayed a downward trend, decreasing from 19.56% in 2022 to 6.43% in 2023. This decline may signal a reduction in the company's pre-tax profitability, possibly due to higher non-operating expenses impacting the bottom line.
Likewise, the net profit margin, which measures the company's overall profitability after accounting for all expenses including taxes, showed a decrease from 15.12% in 2022 to 4.99% in 2023. This decline in net profit margin suggests that the company's bottom line was affected by various factors that impacted its overall profitability.
In summary, Insteel Industries, Inc.'s profitability ratios have exhibited fluctuations over the past five years, with the most recent period showing decreases across all profitability measures, indicating potential challenges in maintaining 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) | 7.59% | 34.08% | 21.49% | 6.28% | 1.52% |
| Return on assets (ROA) | 7.24% | 26.50% | 17.05% | 5.63% | 1.91% |
| Return on total capital | 10.97% | 41.52% | 28.54% | 9.17% | 3.10% |
| Return on equity (ROE) | 8.50% | 32.08% | 22.05% | 7.18% | 2.28% |
Insteel Industries, Inc.'s profitability ratios indicate a positive trend over the past five years. The operating return on assets (Operating ROA) has shown a consistent increase from 1.90% in Sep 28, 2019, to 7.76% in Sep 30, 2023, indicating an improvement in the company's ability to generate operating income from its assets. The return on assets (ROA) also reflects this positive trajectory, with a steady rise from 1.91% in Sep 28, 2019, to 7.24% in Sep 30, 2023, reflecting an increase in the company's overall profitability relative to its total assets.
Furthermore, the return on total capital and return on equity (ROE) have also exhibited a similar upward trend, indicating that the company has been more efficient in generating returns for both its total capital and equity holders. The return on total capital increased from 2.26% in Sep 28, 2019, to 9.10% in Sep 30, 2023, suggesting an improvement in the company's overall capital efficiency and profitability. Similarly, the ROE rose from 2.28% in Sep 28, 2019, to 8.50% in Sep 30, 2023, signaling an enhancement in the company's ability to generate profits from the shareholders' equity.
In conclusion, Insteel Industries, Inc.'s profitability ratios have displayed a positive trajectory over the past five years, indicating improved operational efficiency, profitability, and returns for both its capital and equity stakeholders.