Korn Ferry (KFY)
Profitability ratios
Return on sales
| Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | Apr 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 21.34% | 21.62% | 24.02% | 15.36% | 20.11% |
| Operating profit margin | 7.61% | 11.03% | 17.78% | 8.56% | 8.90% |
| Pretax margin | 7.83% | 10.19% | 16.20% | 8.93% | 7.53% |
| Net profit margin | 6.04% | 7.31% | 12.34% | 6.29% | 5.31% |
Korn Ferry's profitability ratios indicate the company's ability to generate profits in relation to its revenue across the years.
1. Gross Profit Margin: The gross profit margin measures the efficiency of the company's production process and pricing strategy. Korn Ferry's gross profit margin has fluctuated over the years, ranging from 15.36% to 24.02%. The decreasing trend from 2022 to 2024 may indicate increasing costs relative to revenue, leading to a lower profitability at the gross level.
2. Operating Profit Margin: The operating profit margin reflects the efficiency of the company's core operations in generating profit. Korn Ferry's operating profit margin has also experienced fluctuations, ranging from 7.61% to 17.78%. The decline from 2022 to 2024 suggests that the company may be facing challenges in controlling operating expenses relative to revenue.
3. Pretax Margin: The pretax margin indicates the percentage of each dollar of revenue that translates into pre-tax profit. Korn Ferry's pretax margin has varied between 7.53% and 16.20%. The increase in 2023 followed by a decline in 2024 may signal changes in the company's tax situation or earnings performance.
4. Net Profit Margin: The net profit margin measures the company's overall profitability after all expenses have been deducted. Korn Ferry's net profit margin has ranged from 5.31% to 12.34%. The fluctuating trend indicates that the company's ability to translate revenue into bottom-line profit has varied over the years, with a notable increase in 2022 followed by a decrease in 2023 and 2024.
In conclusion, while Korn Ferry has shown some level of profitability over the years, the varying trends in profitability ratios suggest that the company may be facing challenges in managing costs, operational efficiency, and maintaining consistent profitability.
Return on investment
| Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | Apr 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.79% | 8.85% | 13.57% | 5.10% | 6.42% |
| Return on assets (ROA) | 4.60% | 5.86% | 9.42% | 3.74% | 3.82% |
| Return on total capital | 10.00% | 15.47% | 24.23% | 8.85% | 10.90% |
| Return on equity (ROE) | 9.76% | 12.71% | 21.13% | 8.38% | 8.59% |
The profitability ratios for Korn Ferry show varying performance levels over the past five years.
- Operating return on assets (Operating ROA) has fluctuated between 5.10% to 13.57%, with a noticeable decrease in the most recent year to 5.79%. This ratio measures the company's ability to generate operating income from its assets.
- Return on assets (ROA) has also shown fluctuations ranging from 3.74% to 9.42%, with the latest figure at 4.60%. ROA indicates how efficiently the company is utilizing its assets to generate profit.
- Return on total capital has varied from 8.85% to 24.23%, with the most recent figure at 10.00%. This ratio evaluates the returns generated from all capital invested in the company.
- Return on equity (ROE) has shown a similar pattern, ranging from 8.38% to 21.13%, with the latest value at 9.76%. ROE measures the profitability of the company with respect to its shareholders' equity.
Overall, Korn Ferry's profitability ratios have exhibited some volatility in recent years, with a decline in certain ratios in the latest period. It is essential for the company to focus on improving these ratios by optimizing its asset utilization and capital allocation to enhance overall profitability.