Leidos Holdings Inc (LDOS)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 16.79% | 14.54% | 14.48% | 14.66% | 14.13% |
| Operating profit margin | 10.97% | 4.02% | 7.56% | 8.39% | 8.12% |
| Pretax margin | 9.85% | 2.55% | 6.10% | 7.00% | 6.34% |
| Net profit margin | 7.53% | 1.29% | 4.76% | 5.48% | 5.11% |
Leidos Holdings Inc's profitability ratios indicate fluctuating performance over the years.
1. Gross Profit Margin: The company's gross profit margin has shown a slight upward trend, increasing from 14.13% in 2020 to 16.79% in 2024. This suggests that Leidos is effectively managing its direct costs related to production.
2. Operating Profit Margin: The operating profit margin initially increased from 8.12% in 2020 to 8.39% in 2021 but then decreased sharply to 4.02% in 2023 before rebounding to 10.97% in 2024. This indicates fluctuations in the company's ability to control its operating expenses.
3. Pretax Margin: Leidos' pretax margin exhibited variability, starting at 6.34% in 2020, peaking at 7.00% in 2021, dropping to 2.55% in 2023, and rebounding to 9.85% in 2024. These fluctuations may be influenced by changes in tax obligations and operating efficiency.
4. Net Profit Margin: The net profit margin also displayed volatility, declining from 5.11% in 2020 to 1.29% in 2023, before rising to 7.53% in 2024. This suggests varying levels of profitability after accounting for all expenses, including taxes.
Overall, Leidos Holdings Inc's profitability ratios reflect a mix of positive and negative trends, indicating the company's ability to generate profits amidst changing market conditions and operational challenges.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 13.94% | 4.89% | 8.32% | 8.69% | 7.98% |
| Return on assets (ROA) | 9.57% | 1.57% | 5.24% | 5.68% | 5.02% |
| Return on total capital | 41.41% | 14.78% | 25.31% | 26.71% | 24.91% |
| Return on equity (ROE) | 28.42% | 4.74% | 15.93% | 17.55% | 16.26% |
Leidos Holdings Inc has shown a generally positive trend in profitability ratios over the years analyzed.
- Operating return on assets (Operating ROA) improved from 7.98% in December 2020 to 8.69% in December 2021, before slightly declining to 8.32% in December 2022. However, there was a notable decrease in December 2023 to 4.89%. The ratio saw a substantial increase to 13.94% by December 2024, indicating an efficient utilization of assets to generate operating income.
- Return on assets (ROA) followed a similar pattern, increasing from 5.02% in December 2020 to 5.68% in December 2021, before declining to 5.24% in December 2022 and significantly dropping to 1.57% in December 2023. However, the ratio saw a strong recovery to 9.57% in December 2024, signaling improved overall profitability relative to total assets.
- Return on total capital experienced an upward trend, starting at 24.91% in December 2020 and peaking at 41.41% in December 2024. This ratio demonstrates the company's ability to generate profits from the total invested capital, indicating efficient capital allocation and utilization over the years.
- Return on equity (ROE) showed a similar positive trend, increasing from 16.26% in December 2020 to 17.55% in December 2021, before declining to 15.93% in December 2022 and dropping significantly to 4.74% in December 2023. The ratio then rebounded strongly to 28.42% in December 2024, reflecting the company's ability to generate profit from shareholders' equity.
Overall, Leidos Holdings Inc's profitability ratios demonstrate an overall positive performance, with the company effectively utilizing its assets, capital, and equity to generate profits, despite some fluctuations in certain years. The significant improvement in profitability ratios by December 2024 further highlights the company's success in enhancing its profitability metrics.