Mercury Systems Inc (MRCY)
Profitability ratios
Return on sales
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 23.45% | 32.52% | 39.97% | 41.69% | 44.80% |
| Operating profit margin | -17.69% | -2.23% | 3.20% | 8.77% | 11.43% |
| Pretax margin | -22.66% | -4.98% | 1.86% | 8.35% | 11.79% |
| Net profit margin | -16.48% | -2.91% | 1.14% | 6.71% | 10.76% |
Mercury Systems Inc's profitability ratios have shown a declining trend over the past five years. The gross profit margin, which reflects the company's ability to generate revenue after accounting for the cost of goods sold, has decreased from 44.80% in 2020 to 23.45% in 2024. This indicates a decrease in the company's efficiency in managing production costs and pricing strategy.
The operating profit margin, representing the company's ability to generate profit from its core operations, has also seen a significant decline over the same period, dropping from 11.43% in 2020 to -17.69% in 2024. This implies that the company's operating expenses have been increasing at a faster rate than its operating income, leading to operating losses in the latest year.
The pretax margin, reflecting the company's profitability before taxes, has followed a similar downward trend, decreasing from 11.79% in 2020 to -22.66% in 2024. This indicates that the company's overall profitability has been eroded by increasing expenses and declining revenues.
Finally, the net profit margin, which represents the company's profitability after all expenses have been deducted, has also shown a decline over the five-year period, falling from 10.76% in 2020 to -16.48% in 2024. This suggests that Mercury Systems Inc is struggling to generate profits and may face challenges in sustaining its operations in the current business environment.
Overall, the declining trend in Mercury Systems Inc's profitability ratios indicates potential financial difficulties and the need for strategic measures to improve operational efficiency and restore profitability.
Return on investment
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -6.21% | -0.91% | 1.37% | 4.14% | 5.65% |
| Return on assets (ROA) | -5.79% | -1.18% | 0.49% | 3.17% | 5.32% |
| Return on total capital | -7.47% | -1.13% | 1.22% | 4.65% | 6.86% |
| Return on equity (ROE) | -9.35% | -1.81% | 0.73% | 4.18% | 6.19% |
Mercury Systems Inc's profitability ratios have shown a declining trend over the past five years.
- Operating Return on Assets (Operating ROA) has decreased from 5.65% in 2020 to -6.21% in 2024, indicating a significant deterioration in the company's ability to generate profits from its assets.
- Return on Assets (ROA) also demonstrates a declining trend, falling from 5.32% in 2020 to -5.79% in 2024, signifying decreasing profitability relative to the total assets employed.
- Return on Total Capital has decreased from 6.86% in 2020 to -7.47% in 2024, indicating that the company's profitability in relation to its total capital has weakened.
- Return on Equity (ROE) has exhibited a declining trend, decreasing from 6.19% in 2020 to -9.35% in 2024, reflecting a decreasing ability to generate returns for the shareholders.
Overall, the declining trend in Mercury Systems Inc's profitability ratios reflects challenges in generating profits from its assets, total capital, and equity over the past five years. Further analysis and investigation into the company's financial performance and operational efficiency may be warranted to identify and address the underlying reasons for the declining profitability.