Neurocrine Biosciences Inc (NBIX)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 55.64% | 50.57% | 45.00% | 47.34% | 56.44% |
| Operating profit margin | 24.22% | 13.32% | 17.64% | 9.25% | 16.39% |
| Pretax margin | 20.64% | 17.63% | 15.15% | 9.15% | 10.73% |
| Net profit margin | 14.49% | 13.26% | 10.95% | 8.09% | 40.95% |
Neurocrine Biosciences Inc's profitability ratios have shown fluctuations over the years. The gross profit margin decreased from 56.44% in 2020 to 45.00% in 2022 but then increased to 55.64% by 2024, indicating variability in the company's ability to control direct costs.
The operating profit margin exhibited a similar trend, dropping from 16.39% in 2020 to 9.25% in 2021, before rebounding to 24.22% in 2024. This suggests fluctuations in the efficiency of Neurocrine Biosciences' operations to generate profits before accounting for interest and taxes.
The pretax margin saw a more consistent increase over the years, rising from 10.73% in 2020 to 20.64% in 2024, indicating the company's ability to manage operating expenses and generate profits before tax.
Similarly, the net profit margin fluctuated, declining sharply from 40.95% in 2020 to 8.09% in 2021, before gradually improving to 14.49% in 2024. This shows Neurocrine Biosciences' ability to control expenses and generate profits after accounting for all costs and taxes.
Overall, while the company experienced fluctuations in profitability ratios, there has been a general upward trend in recent years, indicating an improvement in cost control and operational efficiency.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 15.34% | 7.72% | 10.51% | 4.95% | 9.40% |
| Return on assets (ROA) | 9.18% | 7.68% | 6.52% | 4.32% | 23.48% |
| Return on total capital | 22.03% | 15.09% | 12.94% | 7.44% | 9.66% |
| Return on equity (ROE) | 13.18% | 11.19% | 9.05% | 6.52% | 36.17% |
Neurocrine Biosciences Inc's profitability ratios have exhibited fluctuating trends over the past five years. The Operating return on assets (Operating ROA) declined from 9.40% in December 2020 to 4.95% in December 2021 but then increased to 10.51% in December 2022, showing improved operational efficiency. However, it dipped to 7.72% in December 2023 before significantly rising to 15.34% in December 2024.
Return on assets (ROA) followed a similar pattern, starting at 23.48% in December 2020, dropping to 4.32% in December 2021, and gradually increasing to 9.18% in December 2024. These fluctuations indicate varying levels of profitability relative to the total assets employed by the company.
Return on total capital reflects the returns generated on the total capital invested in the company. This ratio increased from 9.66% in December 2020 to 22.03% in December 2024, showcasing a positive trend in maximizing returns for capital providers.
Return on equity (ROE) shows the profitability generated for shareholders. The ROE decreased from a high of 36.17% in December 2020 to 6.52% in December 2021 but showed slight improvements in subsequent years, reaching 13.18% in December 2024. Investors may interpret this as the company's ability to generate profits from shareholders' equity, with a gradual recovery in ROE.
Overall, Neurocrine Biosciences Inc's profitability ratios indicate a mix of fluctuations and improvements in operational efficiency, asset utilization, capital returns, and shareholder profitability over the analyzed period. Investors and stakeholders should continue to monitor these ratios to assess the company's financial performance and sustainability.