Madison Square Garden Sports Corp (MSGS)
Profitability ratios
Return on sales
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | |
|---|---|---|---|---|---|
| Gross profit margin | 27.03% | 39.98% | 38.16% | 39.06% | 32.19% |
| Operating profit margin | 1.42% | 14.22% | 9.60% | 10.48% | -18.87% |
| Pretax margin | -1.66% | 10.29% | 10.13% | 9.00% | -21.49% |
| Net profit margin | -2.16% | 5.72% | 5.39% | 6.23% | -3.82% |
Madison Square Garden Sports Corp’s profitability ratios over the specified periods reveal significant fluctuations and underlying trends in the company’s financial performance.
Gross Profit Margin: The gross profit margin demonstrates substantial improvement from 32.19% in June 2021 to a peak of 39.98% in June 2024. This indicates enhanced efficiency in managing the cost of goods sold relative to revenue, reflecting potentially favorable changes in revenue composition or cost control measures. However, by June 2025, the gross margin declines sharply to 27.03%, suggesting increased cost pressures, pricing challenges, or changes in the revenue mix adversely affecting gross profitability.
Operating Profit Margin: The operating profit margin exhibits a notable recovery from a negative of -18.87% in June 2021 to positive territory at 10.48% in June 2022, continuing at 9.60% in June 2023, and further improving to 14.22% in June 2024. This trend reflects a move toward more efficient operations and profitability from core activities. Nevertheless, in June 2025, the operating margin drops sharply to 1.42%, indicating significant operational challenges or increased expenses impacting operating profitability.
Pre-Tax Margin: The pre-tax margin aligns with the operating margin's trajectory. It was negative at -21.49% in June 2021 but turned positive in subsequent years, reaching 10.13% in June 2023 and 10.29% in June 2024. The decline to -1.66% in June 2025 underscores a deterioration in earnings before tax, potentially due to increased interest expenses, non-operating losses, or other financial factors.
Net Profit Margin: The net profit margin mirrors the overall profitability trend. It was negative at -3.82% in June 2021, improved significantly to 6.23% in June 2022, and remained positive at 5.39% in June 2023 and 5.72% in June 2024. The downturn to -2.16% in June 2025 suggests that despite earlier improvements, net profitability was negatively impacted, possibly due to higher tax burdens, extraordinary expenses, or other financial headwinds.
Overall, the profitability ratios depict a pattern of recovery following a period of losses, with substantial improvements logged in the 2022-2024 timeframe. However, the decline in 2025 across all margins indicates a potential reversal or setback in profitability, underscoring the need for ongoing analysis of underlying causes such as cost pressures, revenue challenges, or increased financial expenses.
Return on investment
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 1.01% | 10.85% | 6.48% | 6.61% | -5.99% |
| Return on assets (ROA) | -1.52% | 4.37% | 3.63% | 3.93% | -1.21% |
| Return on total capital | — | — | — | — | — |
| Return on equity (ROE) | — | — | — | — | — |
The profitability ratios of Madison Square Garden Sports Corp over the period from June 2021 to June 2025 reveal notable fluctuations and trends. The Operating Return on Assets (Operating ROA) displayed a significant improvement from a negative -5.99% in June 2021 to a positive 6.61% in June 2022, indicating a turnaround in operating efficiency and profitability. This positive trend persisted into June 2023, with Operating ROA slightly tapering to 6.48%, before accelerating to 10.85% in June 2024, reflecting enhanced operational performance and asset utilization. However, by June 2025, the Operating ROA declined sharply to 1.01%, signaling a possible reduction in operating efficiency or external challenges impacting operations.
In contrast, the Return on Assets (ROA), which encompasses overall profitability including non-operating factors, moved from a negative -1.21% in June 2021 to a positive 3.93% in June 2022, indicating improved overall profitability beyond core operations. It maintained a relatively stable level at 3.63% in June 2023 and increased modestly to 4.37% in June 2024. However, a decline was observed in June 2025, with ROA slipping into negative territory at -1.52%, suggesting overall profitability deterioration during that year.
Data on Return on Total Capital and Return on Equity (ROE) are not available for the period under review, which limits a full assessment of the company's capital efficiency and shareholder profitability ratios.
Overall, the company's profitability ratios highlight a period of significant recovery and operational improvement following initial losses in June 2021. However, recent declines suggest potential headwinds impacting profit generation. Continuous monitoring of both operational and overall profitability ratios is necessary to evaluate future performance trajectories.