Insteel Industries Inc (IIIN)
Profitability ratios
Return on sales
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 9.38% | 10.07% | 23.86% | 20.58% | 11.80% |
| Operating profit margin | 3.63% | 5.23% | 19.44% | 14.22% | 4.49% |
| Pretax margin | 4.78% | 6.43% | 19.56% | 14.58% | 5.11% |
| Net profit margin | 3.65% | 4.99% | 15.12% | 11.28% | 4.02% |
The profitability ratios of Insteel Industries Inc show fluctuating trends over the past five years. The gross profit margin has varied widely, with a significant decrease from 23.86% in 2022 to 9.38% in 2024. This indicates that the company's cost of goods sold has increased in relation to its revenues.
Similarly, the operating profit margin has also been inconsistent, ranging from 3.63% in 2024 to 19.44% in 2022. This suggests that Insteel Industries has experienced fluctuations in its operating expenses relative to its sales.
The pretax margin has followed a similar pattern, with a notable decline from 19.56% in 2022 to 4.78% in 2024. This indicates that the company's profitability before accounting for taxes has decreased significantly.
Finally, the net profit margin has shown similar volatility, declining from 15.12% in 2022 to 3.65% in 2024. This suggests that Insteel Industries' bottom line profitability, after all expenses and taxes are accounted for, has also faced challenges in recent years.
Overall, the fluctuating profitability ratios of Insteel Industries Inc indicate potential challenges in managing costs, operating expenses, and overall profitability. Further analysis of the company's financial performance and strategic decisions would be required to understand the underlying factors driving these trends.
Return on investment
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.55% | 7.59% | 34.08% | 21.49% | 6.28% |
| Return on assets (ROA) | 4.57% | 7.24% | 26.50% | 17.05% | 5.63% |
| Return on total capital | 7.23% | 10.97% | 41.52% | 28.54% | 9.17% |
| Return on equity (ROE) | 5.50% | 8.50% | 32.08% | 22.05% | 7.18% |
Insteel Industries Inc's profitability ratios have shown a fluctuating trend over the past five years.
- Operating return on assets (Operating ROA) has decreased from 34.08% in 2022 to 4.55% in 2024, indicating a significant decline in the company's ability to generate profit from its assets through its core operations. This may suggest operational inefficiencies or challenges in managing costs effectively.
- Return on assets (ROA) has also declined from 26.50% in 2022 to 4.57% in 2024. This further reinforces the trend of decreasing profitability in terms of overall asset utilization and management efficiency.
- Return on total capital has shown a similar decline, from 41.52% in 2022 to 7.23% in 2024. This ratio reflects the company's ability to generate returns for both debt and equity holders, and the downward trend may indicate challenges in efficiently utilizing all sources of capital.
- Return on equity (ROE) has followed a downward trend as well, dropping from 32.08% in 2022 to 5.50% in 2024. A decreasing ROE suggests that the company's profitability in relation to shareholder equity is diminishing, which could be concerning for investors.
Overall, the declining trend in all profitability ratios indicates potential challenges in operational efficiency, asset management, and capital utilization for Insteel Industries Inc. Further analysis and investigation into the company's financial performance and operational strategies may be required to address these issues and improve profitability in the future.