Quanex Building Products (NX)
Profitability ratios
Return on sales
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 7.01% | 11.74% | 11.28% | 10.30% | 10.30% |
| Operating profit margin | 4.29% | 9.79% | 9.11% | 7.64% | 6.49% |
| Pretax margin | 3.29% | 8.58% | 8.99% | 7.47% | 5.91% |
| Net profit margin | 2.59% | 7.30% | 7.23% | 5.31% | 4.52% |
Quanex Building Products' profitability ratios have shown a mixed performance over the last five years. The gross profit margin declined from 11.74% in 2023 to 7.01% in 2024, indicating a decrease in the percentage of revenue retained after accounting for the cost of goods sold. This may be a cause for concern as it could suggest challenges in managing production costs or pricing strategies.
Similarly, the operating profit margin decreased from 9.79% in 2023 to 4.29% in 2024, highlighting a significant drop in the company's ability to generate profits from its core operations. This trend could indicate inefficiencies in managing operating expenses or declining sales volumes impacting profitability.
The pretax margin also decreased from 8.58% in 2023 to 3.29% in 2024, reflecting a decline in profitability before accounting for taxes. This may signal potential challenges such as rising interest expenses or non-operating losses impacting the company's overall financial performance.
Lastly, the net profit margin saw a decrease from 7.30% in 2023 to 2.59% in 2024, indicating a reduced percentage of revenue retained as net profit. This trend suggests that the company's bottom line profitability has weakened, possibly due to increased taxes, interest expenses, or other non-operating costs eating into earnings.
Overall, Quanex Building Products' declining profitability ratios over the past year raise concerns about its operational efficiency and ability to generate sustainable profits. Further analysis of cost management, revenue generation, and overall financial performance is recommended to address these challenges and improve profitability in the future.
Return on investment
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 2.36% | 13.32% | 15.36% | 11.41% | 7.99% |
| Return on assets (ROA) | 1.43% | 9.93% | 12.19% | 7.94% | 5.57% |
| Return on total capital | 6.20% | 19.28% | 24.16% | 19.68% | 15.61% |
| Return on equity (ROE) | 3.27% | 15.12% | 19.00% | 13.57% | 10.82% |
Quanex Building Products' profitability ratios have shown fluctuations over the past five years. The operating return on assets (Operating ROA) has decreased from 15.36% in October 2022 to 2.36% in October 2024, indicating a decline in the company's ability to generate profits from its assets through operations.
The return on assets (ROA) also saw a decrease from 12.19% in 2022 to 1.43% in 2024, suggesting a lower overall profitability generated from all assets. The return on total capital decreased from 24.16% in 2022 to 6.20% in 2024, reflecting a decline in the company's ability to generate returns for both equity and debt holders.
Similarly, the return on equity (ROE) dropped from 19.00% in 2022 to 3.27% in 2024, indicating a decrease in the ability of the company to generate profits for its shareholders. Overall, the declining trend in profitability ratios over the past few years may signify challenges in maintaining or improving financial performance, which could be a concern for stakeholders and investors of Quanex Building Products.