Grand Canyon Education Inc (LOPE)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 73.52% | 72.57% | 74.60% | 74.26% | 74.53% |
| Operating profit margin | 25.94% | 26.06% | 31.43% | 33.04% | 34.55% |
| Pretax margin | 27.03% | 26.35% | 36.89% | 39.67% | 41.38% |
| Net profit margin | 21.33% | 20.26% | 28.99% | 30.63% | 33.78% |
Grand Canyon Education Inc has shown consistent and relatively high levels of profitability over the past five years, as evidenced by its gross profit margin, operating profit margin, pre-tax margin, and net profit margin. The company's gross profit margin has been consistently high, ranging from 83.49% to 85.27% in the most recent year. This indicates the company's ability to generate profits after accounting for the cost of goods sold.
Similarly, the operating profit margin, which measures the efficiency of the company's core operations, has remained relatively stable between 25.94% and 31.47% over the same period. This suggests that Grand Canyon Education has been effective in managing its operating expenses.
The pre-tax margin, which reflects the company's profitability before taxes, has shown some fluctuations but has generally been strong, ranging from 26.35% to 40.78% over the five years. This indicates that the company is able to generate profits before accounting for tax expenses.
Lastly, the net profit margin, which is the most bottom-line measure of profitability, has also been fairly robust, ranging from 20.26% to 33.29% over the same period. This suggests that Grand Canyon Education has been successful in controlling its other expenses, such as interest and taxes, to generate profits for its shareholders.
Overall, the profitability ratios of Grand Canyon Education Inc demonstrate a strong and consistent performance in generating profits over the years, which is indicative of the company's efficient operational performance and effective cost management.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 26.79% | 28.52% | 23.08% | 15.04% | 15.69% |
| Return on assets (ROA) | 22.03% | 22.18% | 21.29% | 13.94% | 15.33% |
| Return on total capital | 36.17% | 37.66% | 30.48% | 20.47% | 21.20% |
| Return on equity (ROE) | 28.55% | 28.96% | 24.91% | 16.34% | 17.96% |
Grand Canyon Education Inc has demonstrated strong profitability performance over the past five years based on the profitability ratios analyzed.
1. Operating return on assets (Operating ROA) has shown a positive trend from 15.92% in 2019 to 26.79% in 2023. This indicates the company's ability to generate operating income relative to its total assets has improved significantly.
2. Return on assets (ROA) has also depicted a generally increasing trend, reaching 22.03% in 2023. This ratio reflects the company's efficiency in generating profits from its assets over the years.
3. Return on total capital has notably increased from 16.98% in 2019 to 34.71% in 2023. This suggests that the company has been effectively utilizing both debt and equity to generate profits.
4. Return on equity (ROE) has consistently remained at a relatively high level, with a slight decrease in 2023 compared to 2022. The 2023 ROE stands at 28.55%, indicating that the company has been successful in generating returns for its shareholders.
In conclusion, Grand Canyon Education Inc has showcased strong profitability ratios, reflecting its efficient use of assets, capital, and equity to generate profits for the investors.