Matthews International Corporation (MATW)
Profitability ratios
Return on sales
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 29.50% | 30.71% | 29.63% | 32.43% | 33.22% |
| Operating profit margin | -0.69% | 4.68% | -2.49% | 2.52% | -4.28% |
| Pretax margin | -3.88% | 2.18% | -5.91% | 0.56% | -7.06% |
| Net profit margin | -3.32% | 2.09% | -5.66% | 0.17% | -5.82% |
The profitability ratios of Matthews International Corporation over the past five years show a mix of performance trends.
1. Gross Profit Margin: The company's gross profit margin has shown a slight decline from 33.22% in 2020 to 29.50% in 2024. This indicates that the company's profitability from sales has decreased over the years, possibly due to factors such as increased production costs or pricing pressures.
2. Operating Profit Margin: The operating profit margin has been inconsistent, with significant fluctuations over the years. The margin turned negative at -0.69% in 2024, after being positive in the previous years. This suggests that the company's operating expenses may have exceeded its operating income in 2024, impacting profitability.
3. Pre-tax Margin: The pre-tax margin also shows fluctuating trends, with a negative margin of -3.88% in 2024. This indicates that the company had pre-tax losses in that year, which could be attributed to various factors like high-interest expenses or impairment charges.
4. Net Profit Margin: The net profit margin, which reflects the company's bottom-line profitability, has shown a similar trend as the pre-tax margin. It decreased to -3.32% in 2024, suggesting that the company's net income was negative in that year after being positive in the previous years.
In conclusion, Matthews International Corporation's profitability ratios demonstrate challenges in maintaining consistent profitability over the years, as shown by declining margins and periods of losses. It would be essential for the company to analyze the underlying factors driving these fluctuations and take strategic actions to improve its profitability in the future.
Return on investment
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -0.67% | 4.67% | -2.33% | 2.07% | -3.10% |
| Return on assets (ROA) | -3.25% | 2.08% | -5.30% | 0.14% | -4.21% |
| Return on total capital | -1.02% | 6.53% | -5.96% | 2.72% | -5.00% |
| Return on equity (ROE) | -13.65% | 7.47% | -20.47% | 0.46% | -14.27% |
Matthews International Corporation's profitability ratios have fluctuated over the past five years. The Operating return on assets (Operating ROA) has shown inconsistent performance, with a negative -0.67% in 2024 after a positive 4.67% in 2023. This indicates that the company's operating income generated from its assets has been declining.
The Return on assets (ROA) also experienced volatility, ranging from -5.30% in 2022 to 2.08% in 2023. The negative ROA figures suggest that Matthews International Corporation has struggled to generate profit from its total assets in those specific years.
Return on total capital has been negative in most years, but it saw a significant improvement in 2023 with a 6.53% return. This indicates that the company has been able to generate some return for both debt and equity investors, although still not consistently.
The Return on equity (ROE) has been particularly volatile, with a high of 7.47% in 2023 and a low of -20.47% in 2022. Negative ROE figures indicate that the company has not been efficiently utilizing shareholder equity to generate profits, which may be a concern for investors.
In conclusion, while there have been some periods of improvement in profitability ratios, overall, Matthews International Corporation's profitability performance has been inconsistent and may require further analysis to understand the reasons behind these fluctuations.