OSI Systems Inc (OSIS)
Profitability ratios
Return on sales
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | |
|---|---|---|---|---|---|
| Gross profit margin | 34.27% | 34.47% | 33.67% | 35.87% | 36.61% |
| Operating profit margin | 12.70% | 12.29% | 10.58% | 10.29% | 7.12% |
| Pretax margin | 10.86% | 10.48% | 9.01% | 11.85% | 8.60% |
| Net profit margin | 8.73% | 8.33% | 7.18% | 9.75% | 6.46% |
The profitability ratios of OSI Systems Inc. over the period from June 2021 to June 2025 indicate a nuanced trend. The gross profit margin has experienced a slight decline from 36.61% in June 2021 to 33.67% in June 2023, followed by a modest recovery to 34.47% in June 2024 and a slight decrease to 34.27% in June 2025. This trend suggests some pressure on gross margins, possibly attributable to increased costs of goods sold or competitive pricing strategies, although the margin remains relatively stable overall.
The operating profit margin has demonstrated a consistent upward trajectory, increasing from 7.12% in June 2021 to 12.70% in June 2025. This indicates enhanced operational efficiency or improved control over operating expenses, allowing the company to retain a larger portion of revenue after operating costs.
Pre-tax margins have mirrored this positive trend, rising from 8.60% in June 2021 to 10.86% in June 2025, with minor fluctuations in between. The increase reflects improved profitability before the impact of income taxes, possibly due to better operating performance or favorable changes in non-operating income and expenses.
The net profit margin has also improved over the period, from 6.46% in June 2021 to 8.73% in June 2025. After accounting for taxes and other costs, the company retains a higher proportion of revenue as profit, indicating overall enhanced profitability and effective cost management.
Overall, OSI Systems Inc. has shown a positive trend in key profitability ratios, with improvements in operating, pre-tax, and net profit margins. While gross margin experienced some pressure, the company's ability to increase margins at the operating and net profit levels suggests effective operational management and cost control strategies have contributed to strengthening overall profitability during this period.
Return on investment
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.71% | 9.77% | 8.70% | 8.44% | 5.90% |
| Return on assets (ROA) | 6.68% | 6.62% | 5.90% | 7.99% | 5.35% |
| Return on total capital | 0.00% | 21.83% | 18.63% | 20.25% | 18.03% |
| Return on equity (ROE) | 15.73% | 14.84% | 12.64% | 18.07% | 11.57% |
The analysis of OSI Systems Inc's profitability ratios over the period from June 30, 2021, to June 30, 2025, indicates a general trend of improvement with some notable fluctuations.
The Operating Return on Assets (Operating ROA) shows a consistent upward trajectory, increasing from 5.90% in 2021 to 9.77% in 2024, reflecting enhanced operational efficiency and profitability from core business activities. The slight decrease to 9.71% in 2025 suggests stability at a high level of operating performance.
The Return on Assets (ROA) follows a similar positive trend, rising from 5.35% in 2021 to peak at 7.99% in 2022, then experiencing fluctuations with a decline to 5.90% in 2023 before improving again to 6.62% in 2024 and marginally increasing to 6.68% in 2025. These movements indicate variability in overall asset utilization and net profitability, possibly influenced by changes in asset base, net income margins, or other factors affecting net profitability.
Return on Total Capital demonstrates a rising pattern from 18.03% in 2021 to a peak of 21.83% in 2024, indicating effective utilization of both equity and debt financing to generate returns. However, a reported value of 0.00% in 2025 suggests either a data anomaly or a significant change in capital structure that severely impacts this ratio, warranting further investigation.
Return on Equity (ROE) exhibits notable growth from 11.57% in 2021 to a high of 18.07% in 2022, then a decline to 12.64% in 2023, followed by recovery to 14.84% in 2024 and further increase to 15.73% in 2025. This pattern implies periods of increased shareholder value creation, tempered by some recent declines, but maintaining an overall positive trajectory.
In summary, OSI Systems Inc has demonstrated improvements in key profitability ratios over the analyzed period, especially in Operating ROA and ROE, reflecting enhanced operational efficiency and shareholder returns. The fluctuations observed in ROA and ROE highlight periods of variability in profitability performance, while the significant change in the return on total capital in 2025 warrants additional analysis to understand underlying causes.