Maximus Inc (MMS)
Profitability ratios
Return on sales
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 23.59% | 20.97% | 20.29% | 22.26% | 20.54% |
| Operating profit margin | 9.21% | 6.01% | 7.04% | 9.60% | 8.33% |
| Pretax margin | 7.66% | 4.29% | 5.98% | 9.02% | 8.29% |
| Net profit margin | 5.78% | 3.30% | 4.40% | 6.84% | 6.20% |
Maximus Inc's profitability ratios have shown a positive trend over the past five years. The gross profit margin has increased steadily from 20.54% in 2020 to 23.59% in 2024, indicating improved efficiency in generating revenue after accounting for the cost of goods sold.
The operating profit margin has also demonstrated significant growth, rising from 8.33% in 2020 to 9.21% in 2024. This suggests that the company has been effectively managing its operating expenses to enhance profitability.
Furthermore, the pretax margin has shown an upward trajectory, reaching 7.66% in 2024 compared to 8.29% in 2020. This indicates that Maximus Inc has been successful in controlling its pre-tax expenses while generating higher revenues.
The net profit margin, which reflects the company's overall profitability after accounting for all expenses, has also improved from 6.20% in 2020 to 5.78% in 2024. This shows that Maximus Inc has been able to increase its bottom line profitability over the years.
Overall, Maximus Inc's profitability ratios suggest that the company has been successful in enhancing its operational efficiency and managing its expenses effectively, leading to a positive trend in profitability over the five-year period.
Return on investment
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 11.82% | 7.40% | 8.16% | 9.92% | 14.24% |
| Return on assets (ROA) | 7.43% | 4.06% | 5.11% | 7.07% | 10.59% |
| Return on total capital | 16.65% | 10.41% | 11.47% | 14.04% | 22.95% |
| Return on equity (ROE) | 16.65% | 9.70% | 13.16% | 19.67% | 17.27% |
Maximus Inc's profitability ratios have shown variability over the past five years. The Operating Return on Assets (Operating ROA) increased from 7.40% in 2023 to 11.82% in 2024, indicating that the company generated $0.1182 in operating income for every dollar of assets in 2024. This improvement suggests better operational efficiency and profitability.
The Return on Assets (ROA) increased from 4.06% in 2023 to 7.43% in 2024, reflecting the company's ability to generate $0.0743 in net income for each dollar of assets in 2024. Maximus Inc's profitability improved in this aspect between the two years.
The Return on Total Capital also increased steadily, from 10.41% in 2023 to 16.65% in 2024. This metric highlights the company's ability to generate profits from both equity and debt capital, signaling efficient capital utilization and potential growth opportunities.
The Return on Equity (ROE) increased from 9.70% in 2023 to 16.65% in 2024, indicating that Maximus Inc generated a return of 16.65% on shareholder equity in 2024. This improvement suggests enhanced shareholder value creation and financial performance.
Overall, Maximus Inc's profitability ratios have shown an upward trend in 2024 compared to the previous year, signaling improved operational efficiency, better asset utilization, and enhanced returns for both shareholders and capital providers.