Krystal Biotech Inc (KRYS)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 61.67% | -76.46% | -15,623.90% | — | — |
| Operating profit margin | 22.15% | -196.77% | -29,155.82% | — | — |
| Pretax margin | 32.15% | 23.13% | -28,107.43% | — | — |
| Net profit margin | 30.06% | 19.60% | -28,107.43% | — | — |
Based on the provided data, I have analyzed the profitability ratios of Krystal Biotech Inc for the years ending December 31, 2022, 2023, and 2024.
1. Gross Profit Margin:
- The gross profit margin for December 31, 2022, was calculated to be -15,623.90%, indicating that the company's cost of goods sold exceeded its revenue by a significant margin.
- This margin improved drastically to -76.46% as of December 31, 2023, implying better cost management but still showing a negative profitability trend.
- Subsequently, the margin significantly improved to 61.67% by December 31, 2024, indicating that the company was able to generate a substantial profit after accounting for the cost of goods sold.
2. Operating Profit Margin:
- The operating profit margin for December 31, 2022, was at -29,155.82%, showing that the company's operating expenses far exceeded its operating income.
- Similarly, the margin improved to -196.77% by December 31, 2023, but still remained negative.
- By December 31, 2024, the operating profit margin turned positive at 22.15%, indicating that the company was able to generate a profit from its core operations.
3. Pretax Margin:
- The pretax margin for December 31, 2022, stood at -28,107.43%, showing that the company was incurring significant losses before accounting for taxes.
- By December 31, 2023, the pretax margin improved to 23.13%, indicating that the company started generating profits before considering taxes.
- Further improvement was seen by December 31, 2024, with the pretax margin increasing to 32.15%, showing a positive trend in profitability.
4. Net Profit Margin:
- The net profit margin for December 31, 2022, was calculated at -28,107.43%, indicating that the company was incurring substantial losses after accounting for all expenses.
- By December 31, 2023, the net profit margin improved to 19.60%, showing that the company was able to generate profits after accounting for all expenses.
- This trend continued positively, with the net profit margin further improving to 30.06% as of December 31, 2024, indicating better profitability and efficiency in managing expenses.
In conclusion, Krystal Biotech Inc showed a significant improvement in its profitability ratios over the years, transitioning from negative margins to positive margins, indicating enhanced operational efficiency and better cost management.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.22% | -13.41% | -26.00% | -10.90% | -10.62% |
| Return on assets (ROA) | 8.44% | 1.34% | -25.06% | -11.11% | -10.35% |
| Return on total capital | 6.94% | 1.66% | -26.80% | -11.47% | -11.01% |
| Return on equity (ROE) | 9.42% | 1.40% | -26.80% | -11.72% | -11.01% |
Krystal Biotech Inc's profitability ratios over the years show some fluctuations. Operating return on assets (Operating ROA) has seen a significant decline from -10.62% in 2020 to -26.00% in 2022, before slightly improving to -13.41% in 2023 and further to 6.22% in 2024. This indicates that the company's operating performance in relation to its assets has been volatile.
Return on assets (ROA) has followed a similar trend, with negative values in the early years but showing improvement in later years, reaching 8.44% in 2024. This suggests that the company has been able to generate more income from its assets as time progressed.
Return on total capital also displayed a declining pattern, starting from -11.01% in 2020, decreasing to -26.80% in 2022, and then recovering to 6.94% in 2024. This ratio highlights the company's ability to generate returns from both equity and debt capital.
Return on equity (ROE) had negative values in the initial years but showed a positive upturn in the later years, reaching 9.42% in 2024. This indicates that the company has been more efficient in generating profits for its shareholders over time.
Overall, while there have been fluctuations in profitability ratios, the company seems to have made some improvements in its operational performance and capital efficiency towards the later years, as seen in the positive trends in ROA, return on total capital, and ROE.