Kulicke and Soffa Industries Inc (KLIC)
Profitability ratios
Return on sales
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 38.05% | 48.30% | 49.77% | 45.93% | 47.82% |
| Operating profit margin | -13.10% | 5.31% | 31.26% | 27.18% | 9.39% |
| Pretax margin | -8.26% | 9.72% | 31.72% | 27.31% | 10.32% |
| Net profit margin | -9.77% | 7.70% | 28.83% | 24.19% | 8.39% |
The profitability ratios of Kulicke and Soffa Industries Inc have shown fluctuations over the past five years.
The gross profit margin has been decreasing steadily from 49.77% in 2022 to 38.05% in 2024, indicating a decline in the company's ability to control production costs and generate profit from its core business activities.
The operating profit margin experienced a significant decline in 2024, dropping to -13.10% from 5.31% in 2023, indicating that the company's operating expenses have surpassed its gross profit, resulting in operating losses.
Similarly, the pretax margin dropped to -8.26% in 2024 from 9.72% in 2023, reflecting a negative impact on the company's profitability before considering taxes.
The net profit margin also decreased to -9.77% in 2024 from 7.70% in 2023, indicating a significant decline in the company's ability to generate profit after accounting for all expenses, including taxes.
Overall, the decreasing trend in profitability ratios suggests that Kulicke and Soffa Industries Inc may be facing challenges in maintaining profitability and controlling costs in recent years. Further analysis of the company's financial performance and strategic initiatives may be necessary to understand the factors contributing to these declines and to identify potential areas for improvement.
Return on investment
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -7.46% | 2.63% | 29.59% | 25.75% | 5.55% |
| Return on assets (ROA) | -5.56% | 3.81% | 27.29% | 22.92% | 4.96% |
| Return on total capital | -9.80% | 6.16% | 39.94% | 37.86% | 8.71% |
| Return on equity (ROE) | -7.31% | 4.87% | 36.29% | 33.52% | 6.90% |
Kulicke and Soffa Industries Inc's profitability ratios have shown some fluctuations over the past five years. The operating return on assets (Operating ROA) has declined from 29.59% in 2022 to -7.46% in 2024, indicating a significant drop in the efficiency of generating profits from its assets through operations. This negative trend suggests potential operational challenges faced by the company in recent years.
Similarly, the return on assets (ROA) has also decreased from 27.29% in 2022 to -5.56% in 2024, implying a decline in the overall profitability of the company relative to its total assets. This negative ROA reflects a weakening financial performance and efficiency in asset utilization.
The return on total capital has shown a similar downward trend, falling from 39.94% in 2022 to -9.80% in 2024. This ratio indicates the company's ability to generate profits from both equity and debt investments, and the negative values in recent years suggest challenges in creating value for its total capital providers.
Lastly, the return on equity (ROE) has also decreased over the years, dropping from 36.29% in 2022 to -7.31% in 2024. This ratio signifies the return earned on shareholders' equity and the declining values imply reduced profitability for the company's equity investors.
Overall, the declining profitability ratios of Kulicke and Soffa Industries Inc indicate deteriorating financial performance and a potential need for the company to address operational inefficiencies and improve its profit generation capabilities to enhance shareholder value.