Leidos Holdings Inc (LDOS)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 14.54% | 14.48% | 14.66% | 14.13% | 13.95% |
| Operating profit margin | 4.02% | 7.56% | 8.39% | 8.12% | 8.22% |
| Pretax margin | 2.55% | 6.10% | 7.00% | 6.34% | 7.78% |
| Net profit margin | 1.29% | 4.76% | 5.48% | 5.11% | 6.01% |
Based on the profitability ratios of Leidos Holdings Inc from 2019 to 2023, we can see fluctuations in the company's performance over the years.
The gross profit margin has been fairly stable, ranging between 13.95% and 14.66% during this period. This indicates that the company has been able to maintain a consistent level of profitability after accounting for the cost of goods sold.
However, there is a noticeable decline in both the operating profit margin and pretax margin from 2019 to 2023. The operating profit margin decreased from 8.22% in 2019 to 4.02% in 2023, indicating a reduction in profitability from its core operations. Similarly, the pretax margin decreased from 7.78% in 2019 to 2.55% in 2023, reflecting a decline in profitability before accounting for taxes.
The net profit margin also saw a consistent decrease over the same period, dropping from 6.01% in 2019 to 1.29% in 2023. This suggests that after considering all expenses, including taxes, the company's bottom line profitability has weakened over the years.
In conclusion, the profitability ratios of Leidos Holdings Inc show a mixed performance, with stable gross profit margins but declining operating profit margins, pretax margins, and net profit margins. This indicates challenges in maintaining profitability levels from core operations and overall business activities.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.89% | 8.32% | 8.69% | 7.98% | 9.74% |
| Return on assets (ROA) | 1.57% | 5.24% | 5.68% | 5.02% | 7.12% |
| Return on total capital | 14.78% | 25.31% | 26.71% | 24.91% | 29.59% |
| Return on equity (ROE) | 4.74% | 15.93% | 17.55% | 16.26% | 19.54% |
Leidos Holdings Inc's profitability ratios have shown fluctuations over the past five years. The Operating return on assets (Operating ROA) has decreased from 9.74% in 2019 to 4.89% in 2023, indicating a decline in the company's ability to generate operating profits from its assets.
Similarly, the Return on assets (ROA) has also decreased consistently from 7.12% in 2019 to 1.57% in 2023, reflecting a decline in overall profitability relative to the total assets employed by the company.
On the other hand, the Return on total capital has also shown a downward trend from 29.59% in 2019 to 14.78% in 2023, indicating a decrease in the company's ability to generate returns on its total capital investment.
Furthermore, the Return on equity (ROE) has shown a decreasing trend from 19.54% in 2019 to 4.74% in 2023, suggesting a decline in the company's ability to generate profits for its shareholders relative to the equity invested.
Overall, the profitability ratios of Leidos Holdings Inc demonstrate a trend of declining profitability and efficiency in generating returns for both assets and capital over the past five years. This may indicate challenges or changes in the company's operations or market conditions that require further investigation and analysis.