Masimo Corporation (MASI)
Profitability ratios
Return on sales
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 49.02% | 49.49% | 49.99% | 49.03% | 51.35% | 54.12% | 57.99% | 65.58% | 65.23% | 64.67% | 64.18% | 64.30% | 64.97% | 65.96% | 66.89% | 67.96% | 67.09% | 66.84% | 66.49% | 66.46% |
| Operating profit margin | 6.67% | 7.78% | 8.86% | 8.10% | 10.18% | 12.06% | 14.92% | 21.68% | 22.26% | 21.82% | 21.69% | 21.52% | 22.37% | 23.03% | 23.34% | 24.00% | 23.59% | 23.38% | 23.53% | 23.97% |
| Pretax margin | 4.30% | 5.67% | 7.20% | 6.91% | 9.38% | 12.09% | 15.14% | 21.59% | 22.15% | 21.91% | 21.90% | 21.84% | 23.06% | 23.85% | 24.32% | 25.27% | 24.97% | 24.67% | 24.65% | 24.87% |
| Net profit margin | 3.98% | 4.15% | 5.25% | 5.09% | 6.96% | 9.63% | 12.55% | 17.91% | 18.53% | 19.23% | 19.00% | 19.54% | 21.01% | 20.30% | 21.22% | 21.66% | 20.92% | 20.83% | 22.15% | 22.49% |
Masimo Corporation's profitability ratios have shown some fluctuations over the quarters. The gross profit margin has been relatively stable in the range of 49% to 55% over the quarters, indicating efficient control over production costs.
The operating profit margin has been gradually decreasing from around 22% to about 6-8%, showing a declining trend in profitability from operations. This could be a result of increasing operating expenses compared to revenue.
The pretax margin has also experienced a downward trend from approximately 24-25% to around 4-7%, indicating lower profitability before taxes. This suggests potential challenges in generating profits after considering operational and non-operational expenses.
The net profit margin has displayed a similar declining pattern, falling from around 22-23% to approximately 3-5%. This indicates that Masimo Corporation's bottom-line profitability has decreased, possibly as a result of increasing expenses or a slower growth in net income compared to revenue.
Overall, the declining trend in operating, pretax, and net profit margins suggests a need for Masimo Corporation to closely evaluate its cost structure and revenue generation strategies to improve profitability in the upcoming quarters.
Return on investment
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.49% | 5.53% | 6.49% | 6.04% | 6.54% | 7.00% | 7.66% | 14.14% | 14.61% | 14.90% | 15.18% | 15.80% | 14.94% | 14.74% | 14.94% | 15.88% | 15.84% | 16.25% | 17.12% | 17.82% |
| Return on assets (ROA) | 2.68% | 2.95% | 3.85% | 3.79% | 4.47% | 5.59% | 6.44% | 11.68% | 12.17% | 13.13% | 13.30% | 14.35% | 14.03% | 12.99% | 13.59% | 14.33% | 14.05% | 14.47% | 16.12% | 16.72% |
| Return on total capital | 6.19% | 8.00% | 9.54% | 9.17% | 9.88% | 10.38% | 11.05% | 17.00% | 17.72% | 18.02% | 18.56% | 19.32% | 18.76% | 18.50% | 18.97% | 19.70% | 20.08% | 20.36% | 21.24% | 21.72% |
| Return on equity (ROE) | 5.97% | 6.94% | 8.85% | 8.89% | 10.72% | 13.64% | 15.86% | 14.09% | 14.81% | 15.81% | 16.08% | 17.26% | 17.07% | 15.73% | 16.53% | 16.86% | 16.80% | 17.16% | 19.07% | 19.62% |
Masimo Corporation's profitability ratios show fluctuations over the analyzed periods. The Operating Return on Assets (Operating ROA) has been gradually declining from 7.66% in Jun 30, 2022, to 4.49% in Dec 31, 2023. Similarly, Return on Assets (ROA) decreased from 6.44% in Jun 30, 2022, to 2.68% in Dec 31, 2023.
Return on Total Capital has also experienced a downward trend, falling from 11.05% in Jun 30, 2022, to 6.19% in Dec 31, 2023. Return on Equity (ROE) shows a mixed pattern, with fluctuations throughout the periods, reaching 5.97% in Dec 31, 2023, after peaking at 17.26% in Mar 31, 2021.
Overall, the profitability ratios suggest that Masimo Corporation's ability to generate profit from its assets, capital, and equity has been fluctuating, indicating potential challenges in effectively utilizing its resources to generate returns. Further analysis into the company's operational efficiency and strategic decisions may be necessary to understand the reasons behind these fluctuations.