Madison Square Garden Sports Corp (MSGS)
Profitability ratios
Return on sales
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 27.18% | 33.21% | 37.55% | 39.89% | 39.82% | 36.35% | 36.88% | 39.47% | 38.16% | 40.01% | 40.67% | 40.04% | 39.06% | 36.12% | 33.12% | 33.59% | 32.19% | 23.37% | 31.02% | 36.39% |
| Operating profit margin | 1.42% | 8.44% | 12.83% | 14.71% | 11.72% | 6.03% | 6.59% | 8.90% | 9.60% | 12.94% | 11.31% | 10.30% | 10.48% | 5.25% | -1.83% | -22.78% | -18.87% | -39.19% | -48.91% | -11.49% |
| Pretax margin | -1.66% | 4.95% | 9.53% | 12.05% | 10.29% | 5.47% | 8.37% | 10.48% | 10.13% | 13.13% | 9.77% | 8.83% | 9.00% | 3.68% | -3.85% | -25.92% | -21.49% | -42.99% | -53.64% | -12.26% |
| Net profit margin | 0.06% | 7.39% | 5.33% | 6.75% | 5.72% | 2.59% | 4.38% | 5.16% | 5.31% | 8.93% | 6.25% | 5.93% | 6.23% | 9.28% | 8.54% | -0.51% | -3.36% | -54.26% | -52.82% | -11.86% |
An examination of Madison Square Garden Sports Corp.’s profitability ratios over the period from September 2020 to June 2025 reveals noteworthy trends and fluctuations across several key indicators: gross profit margin, operating profit margin, pretax margin, and net profit margin.
Gross Profit Margin:
The gross profit margin experienced a general upward trajectory following a significant decline in 2020. Specifically, it decreased from 36.39% on September 30, 2020, reaching a low of 23.37% on March 31, 2021. Subsequently, the margin showed a sustained improvement, peaking at approximately 40.67% on December 31, 2022, and maintaining levels above 36% through March 2024. This trend indicates a progressively better control over direct costs relative to revenue, or an improvement in revenue quality, following the initial pandemic impact.
Operating Profit Margin:
Initially, the company faced substantial operating losses, with a negative margin of -11.49% in September 2020 and an even deeper loss of -48.91% by December 2020. Over the subsequent period, a recovery is evident: the operating margin turned positive by March 2022 at 5.25%, reaching a peak of approximately 14.71% on September 2024. In recent quarters, the margins have shown slight fluctuations but generally remain robust relative to the pre-pandemic period, reflecting improved operational efficiency and revenue generation.
Pre-Tax Margin:
Mirroring trends observed in operating income, the pre-tax margin was significantly negative during 2020, with -12.26% in September and -53.64% in December of that year. From March 2022 onward, a steady recovery is observed, with margins turning positive and reaching as high as 12.05% in September 2024. The latest data shows some decline, with the margin approaching near breakeven levels of approximately 4.95% in March 2025, suggesting ongoing challenges and volatility in pretax profitability.
Net Profit Margin:
The net profit margin followed a similar pattern, starting negatively at -11.86% in September 2020 and deepening to -54.26% in March 2021. The transition toward profitability is evident from 2021, with net margins turning positive in December 2021 at 8.54%. The margins generally stabilized in the 5% to 7% range through 2023 and into early 2024. Notably, the net margin declined considerably to near breakeven at 0.06% in June 2025, indicating the potential impact of increased costs, intensified competition, or other operational factors affecting bottom-line profitability.
Summary:
Overall, Madison Square Garden Sports Corp. demonstrated a significant rebound in profitability following the severe downturn in 2020 caused by the pandemic. The gross profit margin improvement suggests better revenue management and cost control at the gross level. The trend toward positive operating, pretax, and net margins from 2021 onward reflects operational recovery and efficiency gains. However, recent declines towards minimal or near-zero margins highlight ongoing profitability challenges that warrant close monitoring. The data collectively suggest a pattern of recovery interrupted by periods of volatility, with the company making strides toward stabilizing its profitability metrics in the most recent periods.
Return on investment
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 1.01% | 5.96% | 9.71% | 11.11% | 8.35% | 4.03% | 4.23% | 5.90% | 6.48% | 8.88% | 7.74% | 6.32% | 6.61% | 3.05% | -0.86% | -6.47% | -5.99% | -7.87% | -19.03% | -10.39% |
| Return on assets (ROA) | 0.04% | 5.22% | 4.03% | 5.10% | 4.08% | 1.73% | 2.82% | 3.43% | 3.58% | 6.13% | 4.28% | 3.64% | 3.93% | 5.39% | 4.04% | -0.15% | -1.07% | -10.89% | -20.55% | -10.73% |
| Return on total capital | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Return on equity (ROE) | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
The analysis of Madison Square Garden Sports Corp’s profitability ratios over the specified periods reveals notable trends and shifts in operational performance.
Starting with the Operating Return on Assets (Operating ROA), the data highlights a trajectory from substantial losses towards improved profitability. In the fiscal year ending September 30, 2020, the Operating ROA was negative at -10.39%, with subsequent quarters reflecting deeper losses, notably reaching -19.03% at year-end 2020. Throughout early 2021, the losses persisted but steadily narrowed, with the Operating ROA improving to -7.87% by March 2021, and further to -5.99% by June 2021. The subsequent quarters exhibited continued recovery, with the Operating ROA reaching positive territory at 3.05% in March 2022 and peaking around 8.88% in March 2023.
Similarly, the standard Return on Assets (ROA) demonstrated a comparable improving trend. It started at -10.73% in September 2020, declined further to -20.55%, and then began to recover into modest profitability, turning positive at 4.04% by December 2021. Over the following year, the ROA increased to 6.13% by March 2023 before experiencing fluctuations, including a dip to approximately 3.43% in September 2023, and subsequently declining to 1.73% in March 2024 before rising again to 5.10% in September 2024. However, the ROA appears to decline toward roughly 0.04% in June 2025, indicating some variability and potential challenges in sustaining profitability levels.
The ratios reflecting returns on total capital (which, for this period, are unavailable) and return on equity are notably absent, limiting comprehensive ratios analysis in these areas. Nonetheless, the focus on ROA and Operating ROA underscores the company's transition from significant losses to positive profitability.
This overall pattern suggests that Madison Square Garden Sports Corp has experienced a recovery in profitability beginning around late 2021, likely driven by operational improvements, increased revenue streams, or recovering event-related activities post-pandemic disruptions. The progression towards positive ROA ratios indicates enhancements in asset utilization efficiency and overall operational efficiency. Yet, the notable fluctuations and recent declines signal ongoing challenges and the importance of monitoring future performance to confirm sustained profitability growth.