Nextracker Inc. Class A Common Stock (NXT)
Profitability ratios
Return on sales
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | |
|---|---|---|---|
| Gross profit margin | 32.52% | 24.67% | 20.89% |
| Operating profit margin | 23.49% | 15.65% | 12.82% |
| Pretax margin | 16.72% | 3.19% | 2.58% |
| Net profit margin | 12.25% | 0.37% | -1.58% |
Nextracker Inc. Class A Common Stock's profitability has shown significant improvements over the past three quarters, as indicated by the increasing trend in all profitability ratios.
The gross profit margin has increased steadily from 20.89% in September 2023 to 32.52% in March 2024, showcasing the company's ability to generate more profit from its production and sales activities.
The operating profit margin has also seen a notable improvement, climbing from 12.82% in September 2023 to 23.49% in March 2024. This indicates that the company has been able to control its operating expenses effectively while increasing its revenues.
Furthermore, the pretax margin has experienced a substantial rise, indicating better management of pre-tax income relative to total revenue. The margin increased from 2.58% in September 2023 to 16.72% in March 2024.
Lastly, the net profit margin, a key indicator of profitability, has shown remarkable growth, jumping from -1.58% in September 2023 to 12.25% in March 2024. This suggests that the company has been successful in increasing its bottom line by controlling expenses and improving operational efficiency.
Overall, Nextracker Inc. Class A Common Stock has made significant progress in enhancing its profitability ratios, reflecting improved operational performance and financial health.
Return on investment
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | |
|---|---|---|---|
| Operating return on assets (Operating ROA) | 23.31% | 17.04% | 13.14% |
| Return on assets (ROA) | 12.16% | 0.40% | -1.62% |
| Return on total capital | 53.13% | — | — |
| Return on equity (ROE) | 31.87% | — | — |
Nextracker Inc. Class A Common Stock's profitability ratios show an improving trend over the past three quarters.
1. Operating return on assets (Operating ROA) has been consistently increasing, from 13.14% in September 2023 to 23.31% in March 2024. This indicates that the company is effectively generating operating income relative to its total assets.
2. Return on assets (ROA) has also shown significant improvement, moving from a negative figure of -1.62% in September 2023 to a positive 12.16% in March 2024. This demonstrates that the company is efficiently using its assets to generate profit.
3. Return on total capital is impressive at 53.13% in March 2024. This metric measures the overall effectiveness of the company in generating returns for both debt and equity holders.
4. Return on equity (ROE) stands at 31.87% in March 2024, indicating that the company is generating a solid return for its equity investors.
Overall, the profitability ratios of Nextracker Inc. Class A Common Stock reflect a positive trend with improving profitability and efficiency in asset utilization and return generation.