Lumentum Holdings Inc (LITE)
Profitability ratios
Return on sales
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 9.25% | 32.84% | 47.95% | 46.76% | 40.55% |
| Operating profit margin | -15.97% | -6.68% | 18.44% | 31.47% | 12.73% |
| Pretax margin | -14.93% | -5.91% | 14.30% | 27.65% | 10.87% |
| Net profit margin | -20.11% | -7.60% | 12.09% | 23.72% | 8.45% |
Lumentum Holdings Inc's profitability ratios have shown a significant decline over the years. The gross profit margin has been consistently decreasing, indicating a decrease in the company's ability to generate profit after covering the cost of goods sold.
The operating profit margin also displays a negative trend, showing that the company's operating expenses are outpacing its revenues. This indicates inefficiencies in managing operating costs and a lack of profitability from core business activities.
Similarly, the pretax margin and net profit margin have also deteriorated over the years, with both ratios turning negative in the most recent period. This suggests that the company is experiencing significant losses before and after accounting for taxes, highlighting financial challenges and operational inefficiencies.
Overall, the declining trend in all profitability ratios signals potential financial difficulties for Lumentum Holdings Inc and raises concerns about its ability to generate sustainable profits in the future.
Return on investment
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -11.04% | -2.50% | 7.29% | 14.84% | 6.20% |
| Return on assets (ROA) | -13.90% | -2.84% | 4.78% | 11.19% | 4.12% |
| Return on total capital | -12.54% | -1.74% | 9.44% | 19.18% | 8.21% |
| Return on equity (ROE) | -57.09% | -9.71% | 10.61% | 20.14% | 7.75% |
Lumentum Holdings Inc's profitability ratios have shown fluctuations over the past five years.
1. Operating return on assets (Operating ROA) has decreased significantly from 14.84% in 2021 to -11.04% in 2024, indicating a recent decline in the company's ability to generate operating income from its assets.
2. Return on assets (ROA) also decreased, with a notable negative trend from 11.19% in 2021 to -13.90% in 2024, suggesting a decrease in the company's overall profitability in relation to its total assets.
3. Return on total capital experienced a drastic decline from 19.18% in 2021 to -12.54% in 2024, indicating challenges in generating returns from the total invested capital.
4. Return on equity (ROE) has shown significant fluctuations, with a sharp decrease from 20.14% in 2021 to -57.09% in 2024, reflecting a decline in the company's ability to generate returns for its shareholders.
Overall, Lumentum Holdings Inc's profitability ratios have deteriorated over the past few years, signaling potential challenges in maintaining profitability and generating returns for both its assets and equity holders.