MACOM Technology Solutions Holdings Inc (MTSI)
Profitability ratios
Return on sales
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 53.97% | 59.50% | 60.16% | 56.33% | 50.97% |
| Operating profit margin | 10.10% | 16.56% | 19.65% | 13.35% | 0.64% |
| Pretax margin | 12.55% | 17.76% | 36.01% | 7.08% | -7.84% |
| Net profit margin | 10.53% | 14.12% | 65.16% | 6.26% | -8.69% |
MACOM Technology Solutions Holdings Inc has shown a declining trend in gross profit margin over the past five years, from 50.97% in 2020 to 53.97% in 2024. However, the company's gross profit margin remains relatively healthy, indicating its ability to generate profits from sales after accounting for the cost of goods sold.
In terms of operating profit margin, MACOM experienced fluctuations but generally maintained a positive trend, with the margin ranging from 0.64% in 2020 to 16.56% in 2023. The company's ability to control operating expenses and generate operating profits has been relatively strong.
The pretax margin for MACOM has also varied significantly over the years, reaching a high of 36.01% in 2022 and a low of -7.84% in 2020. This indicates fluctuations in the company's ability to generate profits before accounting for taxes and other expenses.
The net profit margin for MACOM also fluctuated, ranging from -8.69% in 2020 to 65.16% in 2022. The company experienced a significant increase in profitability in 2022 but saw a decline in subsequent years. Overall, the net profit margin reflects MACOM's ability to generate profits after accounting for all expenses, including taxes.
In summary, MACOM Technology Solutions Holdings Inc has shown varying profitability ratios over the past five years, with fluctuations in gross profit, operating profit, pretax profit, and net profit margins. It is essential for the company to address the fluctuations and work towards maintaining stable and sustainable profitability ratios 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) | 4.20% | 6.91% | 8.44% | 7.14% | 0.30% |
| Return on assets (ROA) | 4.38% | 5.90% | 27.99% | 3.35% | -4.02% |
| Return on total capital | 6.14% | 9.14% | 17.87% | 6.74% | -1.49% |
| Return on equity (ROE) | 6.82% | 9.66% | 52.20% | 8.05% | -15.35% |
MACOM Technology Solutions Holdings Inc's profitability ratios demonstrate a mixed performance over the past five years.
Operating return on assets (Operating ROA) has shown a declining trend, from 8.44% in 2022 to 4.20% in 2024, indicating a decrease in the company's ability to generate operating profits from its assets.
Return on assets (ROA) has also fluctuated over the years, with a significant spike to 27.99% in 2022, followed by a drop to 4.38% in 2024. This indicates that the company's overall profitability in relation to its total assets has been inconsistent.
Return on total capital has exhibited variability, with the highest point at 17.87% in 2022 and the lowest at -1.49% in 2020. This ratio reflects the company's ability to generate returns for both equity and debt holders.
Return on equity (ROE) fluctuated notably, from a high of 52.20% in 2022 to a low of -15.35% in 2020. This ratio indicates how well the company is utilizing shareholders' equity to generate profits.
Overall, while the company has seen periods of strong profitability, there are instances of significant decline as well, suggesting some inconsistencies in its financial performance. Future analysis should delve deeper into the reasons behind these fluctuations to assess the company's long-term sustainability and growth potential.