Grand Canyon Education Inc (LOPE)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 74.14% | 73.52% | 72.57% | 74.60% | 74.26% |
| Operating profit margin | 26.66% | 25.94% | 26.06% | 31.43% | 33.04% |
| Pretax margin | 28.20% | 27.03% | 26.35% | 36.89% | 39.67% |
| Net profit margin | 21.90% | 21.33% | 20.26% | 28.99% | 30.63% |
Grand Canyon Education Inc's gross profit margin has remained relatively stable over the past years, ranging from 72.57% to 74.60%. This indicates that the company has been efficient in generating profits from its revenue after accounting for the cost of goods sold.
However, the operating profit margin has experienced a slight decline from 33.04% in 2020 to 26.66% in 2024. This suggests that the company's operating expenses relative to its revenue have increased, impacting its profitability at the operating level.
Similarly, the pretax margin has shown a downward trend, decreasing from 39.67% in 2020 to 28.20% in 2024. This indicates that the company's profitability before accounting for taxes has also declined over the years.
The net profit margin, reflecting the company's bottom-line profitability, has followed a similar pattern, decreasing from 30.63% in 2020 to 21.90% in 2024. This indicates that Grand Canyon Education Inc's overall profitability after accounting for all expenses and taxes has weakened over the years.
In conclusion, while the company has maintained a relatively healthy gross profit margin, its operating, pretax, and net profit margins have shown a decreasing trend, suggesting potential challenges in controlling operating expenses and maintaining overall profitability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 27.04% | 26.79% | 28.52% | 23.08% | 15.04% |
| Return on assets (ROA) | 22.21% | 22.03% | 22.18% | 21.29% | 13.94% |
| Return on total capital | 35.13% | 36.17% | 37.66% | 30.48% | 20.47% |
| Return on equity (ROE) | 28.86% | 28.55% | 28.96% | 24.91% | 16.34% |
Based on the provided data for Grand Canyon Education Inc, we observe an improving trend in profitability ratios over the years.
- Operating return on assets (Operating ROA) has shown a steady increase from 15.04% in December 31, 2020 to 27.04% in December 31, 2024. This indicates the company's ability to generate operating profits relative to its total assets has been improving.
- Return on assets (ROA) has also demonstrated a positive trend, rising from 13.94% in December 31, 2020 to 22.21% in December 31, 2024. This ratio reflects the company's efficiency in generating profits from its assets.
- Return on total capital has consistently increased from 20.47% in December 31, 2020 to 35.13% in December 31, 2024, showcasing the company's ability to generate returns for both equity and debt holders.
- Return on equity (ROE) has improved progressively from 16.34% in December 31, 2020 to 28.86% in December 31, 2024. This indicates how effectively the company is utilizing its shareholders' equity to generate profits.
Overall, the profitability ratios of Grand Canyon Education Inc suggest a positive financial performance and efficiency in utilizing its assets and capital to generate returns for its stakeholders.