Lumentum Holdings Inc (LITE)
Profitability ratios
Return on sales
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | |
|---|---|---|---|---|---|
| Gross profit margin | 27.96% | 18.50% | 38.37% | 46.05% | 48.78% |
| Operating profit margin | -10.95% | -31.93% | -6.55% | 17.71% | 30.24% |
| Pretax margin | -10.46% | -29.85% | -5.80% | 13.73% | 26.57% |
| Net profit margin | 1.57% | -40.21% | -7.45% | 11.61% | 22.80% |
Lumentum Holdings Inc.'s profitability ratios over the period from June 2021 to June 2025 exhibit notable fluctuations and underlying trends. The gross profit margin shows a declining pattern, beginning at 48.78% in 2021 and decreasing to 38.37% in 2023, with a significant drop to 18.50% in 2024 before partially recovering to 27.96% in 2025. This suggests a narrowing of gross profitability, potentially reflecting increased cost pressures or pricing challenges.
The operating profit margin reflects a similar downward trajectory. It started at a healthy 30.24% in 2021 and declined sharply to 17.71% in 2022. Subsequently, the margin fell into negative territory, reaching -6.55% in 2023, and further deteriorated to -31.93% in 2024 before improving to -10.95% in 2025. The transition into negative margins indicates operational difficulties and declining operational efficiency during this period.
Pretax margin mirrors this trend, commencing at 26.57% in 2021 and dropping to 13.73% in 2022. It then turns negative at -5.80% in 2023, with further decline to -29.85% in 2024, before a partial rebound to -10.46% in 2025. The pattern underscores increasing pretax losses in the earlier years, with some recovery towards the end of the period.
The net profit margin, which incorporates all expenses and taxes, also exhibits significant changes. It stands at 22.80% in 2021, reducing to 11.61% in 2022, then turning negative at -7.45% in 2023. The decline intensifies in 2024 to -40.21%, indicating substantial bottom-line challenges, and improves markedly to 1.57% in 2025, suggesting a potential return to profitability.
Overall, the financial data reveals a period of declining profitability for Lumentum Holdings Inc., characterized by decreasing margins across all key measures. The transition into negative operating, pretax, and net profit margins during 2023 and 2024 indicates significant earnings pressures, while the partial recovery in 2025 suggests an improvement in profitability dynamics.
Return on investment
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -4.27% | -11.04% | -2.50% | 7.29% | 14.84% |
| Return on assets (ROA) | 0.61% | -13.90% | -2.84% | 4.78% | 11.19% |
| Return on total capital | -15.78% | -38.85% | -4.93% | 16.82% | 26.86% |
| Return on equity (ROE) | 2.28% | -57.09% | -9.71% | 10.61% | 20.14% |
The profitability ratios of Lumentum Holdings Inc. over the period from June 30, 2021, to June 30, 2025, depict a pattern of significant decline followed by partial recovery.
The Operating Return on Assets (Operating ROA) experienced a substantial decrease, declining from 14.84% in June 2021 to 7.29% in June 2022. Following this, a negative trend ensued, culminating in a negative 2.50% in June 2023 and further deterioration to -11.04% in June 2024. Although there was an improvement to -4.27% in June 2025, profitability remains below zero, indicating challenges in operational efficiency relative to asset utilization.
Similarly, the Return on Assets (ROA) mirrored this downward trend. It fell from 11.19% in June 2021 to 4.78% in June 2022, then turned negative at -2.84% by June 2023. The negative trajectory continued into June 2024, reaching -13.90%, before slightly recovering to 0.61% in June 2025. The near-zero ROA in the latest period suggests a fragile profitability position, with the company approaching break-even levels on assets.
The Return on Total Capital (ROTC) reflects an even more pronounced decline. Initially, it was strong at 26.86% in June 2021 but decreased considerably to 16.82% in June 2022. Beyond this, the ratio turned negative, plummeting to -4.93% in June 2023 and reaching -38.85% in June 2024. Although there was an improvement to -15.78% in June 2025, the ratio remains significantly negative, indicating poor overall profitability relative to total capital employed.
Return on Equity (ROE) similarly demonstrates a deteriorating trend. It decreased from 20.14% in June 2021 to 10.61% in June 2022, then declined sharply into negative territory at -9.71% in June 2023. The negative ROE deepened further to -57.09% in June 2024, before a modest recovery to 2.28% in June 2025. The negative figures in the middle periods highlight periods of substantial losses or diminished profitability, whereas the slight positive in 2025 suggests some operational improvement or restructuring effects.
Overall, the profitability ratios indicate that Lumentum Holdings Inc. faced considerable profitability challenges during the analyzed period, with negative returns across key metrics in recent years. The partial recovery in 2025 may point to initial signs of improvement, yet profitability remains weak compared to prior levels.