Innoviva Inc (INVA)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 100.00% | 84.09% | 95.84% | 100.00% | 0.10% |
| Operating profit margin | 63.94% | 56.92% | 63.38% | 95.72% | 95.35% |
| Pretax margin | 10.42% | 62.52% | 86.60% | 113.63% | 105.18% |
| Net profit margin | 6.52% | 57.89% | 64.56% | 67.84% | 66.63% |
Innoviva Inc's profitability ratios demonstrate fluctuations over the years.
1. Gross Profit Margin:
- In 2020, the gross profit margin was very low at 0.10%, which indicates the company had high costs relative to its sales.
- Subsequently, the margin improved significantly to 100.00% in 2021, suggesting that the company was able to control its cost of goods sold effectively.
- The margin remained high in 2022 and 2024, at 95.84% and 100.00% respectively, indicating continued efficiency in production or cost management.
- However, there was a decline in 2023 to 84.09%, which may indicate increased costs or pricing pressures.
2. Operating Profit Margin:
- The operating profit margin was consistently high from 2020 to 2021, indicating efficient cost management and operations.
- There was a significant decline in 2022 to 63.38%, which could be due to increased operating expenses or lower revenue.
- The margin slightly increased in 2024 to 63.94%, indicating some improvement in operating efficiency compared to 2023.
3. Pretax Margin:
- The pretax margin was high in 2020 and 2021, suggesting the company generated substantial profits before taxes during these years.
- However, there was a considerable decrease in 2022 to 86.60%, potentially indicating increased tax expenses or lower profitability.
- The margin dropped significantly in 2023 to 62.52% and further to 10.42% in 2024, indicating challenges in generating profits before taxes in these years.
4. Net Profit Margin:
- The net profit margin was relatively stable from 2020 to 2022, hovering around the 60-70% range, indicating decent profitability after all expenses.
- However, there was a notable decline in 2023 to 57.89% and a significant drop in 2024 to 6.52%, indicating a substantial decrease in profitability after accounting for all expenses, including taxes.
Overall, Innoviva Inc's profitability ratios show mixed performance, with varying levels of efficiency, profitability, and challenges over the years. Further analysis of cost structures, revenue drivers, and overall business strategy may provide insights into the factors influencing these profitability ratios.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 17.63% | 14.21% | 17.05% | 40.49% | 32.13% |
| Return on assets (ROA) | 1.80% | 14.45% | 17.37% | 28.70% | 22.45% |
| Return on total capital | 8.62% | 31.60% | 53.51% | 102.76% | 56.15% |
| Return on equity (ROE) | 3.38% | 26.63% | 37.81% | 64.10% | 41.56% |
Innoviva Inc's profitability ratios show varying levels of performance over the years.
1. Operating Return on Assets (Operating ROA):
- The Operating ROA increased from 32.13% in 2020 to 40.49% in 2021, indicating improved operational efficiency in generating profits from its assets.
- However, there was a decline in 2022 to 17.05% and further to 14.21% in 2023, suggesting a potential decrease in the company's ability to generate profits from its operations.
- The ratio slightly improved to 17.63% in 2024, but it still remained below the levels seen in 2020 and 2021.
2. Return on Assets (ROA):
- ROA also exhibited a similar trend, with a notable increase from 22.45% in 2020 to 28.70% in 2021, reflecting enhanced profitability in relation to total assets.
- Subsequently, the ratio decreased to 17.37% in 2022 and further dropped to 14.45% in 2023, indicating a decline in overall profitability.
- In 2024, ROA significantly decreased to 1.80%, possibly signaling challenges in utilizing assets efficiently to generate profits.
3. Return on Total Capital:
- The Return on Total Capital was quite high in 2021 at 102.76%, indicating that the company generated significant profits relative to its total capital employed.
- However, this ratio declined in the following years, reaching 8.62% in 2024, which could suggest a decrease in the efficiency of using all sources of capital to generate returns.
4. Return on Equity (ROE):
- ROE followed a similar pattern as the other ratios, with a substantial increase from 41.56% in 2020 to 64.10% in 2021, indicating improved returns to shareholders' equity.
- There was a decrease in 2022 to 37.81% and a further decline to 26.63% in 2023, suggesting a decrease in the company's profitability from shareholders' perspective.
- The ratio dropped significantly to 3.38% in 2024, which could imply a significant decrease in the company's ability to generate profits for its shareholders.
Overall, the profitability ratios of Innoviva Inc demonstrate fluctuations over the years, with some years showing strong performance in profitability metrics while others point to challenges in maintaining or improving profitability levels. It is essential for the company to identify the factors contributing to these fluctuations and take necessary steps to improve its profitability in the future.