Jacobs Solutions Inc. (J)
Profitability ratios
Return on sales
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 21.21% | 22.05% | 21.37% | 19.13% | 19.45% |
| Operating profit margin | 6.57% | 6.08% | 4.83% | 3.96% | 3.18% |
| Pretax margin | 5.26% | 5.34% | 5.28% | 4.05% | 6.95% |
| Net profit margin | 4.07% | 4.27% | 3.35% | 3.64% | 6.66% |
Jacobs Solutions Inc. has shown a consistent trend in its profitability ratios over the last five years. The gross profit margin, which measures the percentage of revenue left after deducting the cost of goods sold, has generally been in the range of 19% to 22%, indicating the company's ability to manage its production costs effectively.
The operating profit margin, which indicates the company's ability to generate profits from its core operations, has also shown improvement from 3.18% in 2019 to 6.57% in 2023. This suggests that Jacobs Solutions Inc. has become more efficient in managing its operating expenses and increasing its operational profitability over the years.
The pretax margin, representing the percentage of each dollar of revenue that translates into pre-tax profit, has shown fluctuations but has generally been stable between 4% to 6%. This indicates that the company has been able to effectively manage its non-operating expenses and generate consistent profitability before taxes.
The net profit margin, which reflects the company's bottom-line profitability after accounting for all expenses, has shown a slight decrease from 6.66% in 2019 to 4.07% in 2023. This decline suggests that while Jacobs Solutions Inc. has been able to generate healthy profits, it may have experienced an increase in expenses or a decrease in revenue in the most recent year.
Overall, Jacobs Solutions Inc. has demonstrated sound profitability levels over the years, with improvements in operational efficiency and profitability margins, albeit with some fluctuations in net profit margin. The company should continue to focus on cost management and revenue growth strategies to sustain and enhance its profitability in the future.
Return on investment
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.36% | 6.26% | 4.70% | 4.34% | 3.53% |
| Return on assets (ROA) | 4.55% | 4.39% | 3.26% | 3.98% | 7.40% |
| Return on total capital | 11.01% | 9.61% | 9.39% | 8.13% | 14.01% |
| Return on equity (ROE) | 10.17% | 10.63% | 8.03% | 8.46% | 14.84% |
Jacobs Solutions Inc. has shown steady improvement in profitability ratios over the past five years.
1. Operating return on assets (Operating ROA) has increased consistently from 3.53% in 2019 to 7.36% in 2023, indicating that the company's core operations are becoming more efficient in generating profits.
2. Return on assets (ROA) has fluctuated but generally trended upwards, with a peak of 4.55% in 2023. This ratio measures overall profitability from all sources of financing and indicates the company's ability to generate earnings from its assets.
3. Return on total capital has shown a similar upward trend, reaching 11.01% in 2023. This ratio reflects the efficiency of using both debt and equity capital to generate profits.
4. Return on equity (ROE) has also shown improvement, with a slight dip in 2021 but rebounding to 10.17% in 2023. This metric indicates how well the company is using shareholders' equity to generate profits.
Overall, Jacobs Solutions Inc. has displayed consistent improvement in its profitability ratios over the years, reflecting a more efficient use of assets and capital to drive earnings growth.